Daystar Power, a commercial and industrial (C&I) solar developer, has raised $4 million from SundFunder to provide solar power and energy efficiency solutions for businesses in the commercial, industrial, and agricultural sectors in Nigeria.
Daystar Power says the funding will result in significant reduction of power costs, diesel consumption and pollution in Nigeria.
SunFunder, a solar finance company providing debt capital to solar enterprises in emerging markets, invests up to 3MWp of C&I projects for clients including top tier financial institutions and other small and medium-sized enterprises will mitigate 102,410 tons of CO2 emissions annually.
According to Rim Azirar, Investment Officer at SunFunder, “We are delighted to support Daystar’s growth with a project finance-like structure that can support the company’s strategy for rapid buildout in Nigeria, through their highly scalable business model.”
Daystar’s mission is to provide an African sustainable energy solution that results in a minimum 20 % reduction in energy costs and 50% reduction in diesel consumption for end users.
According to a recent study by Bloomberg New Energy Finance, Nigeria has the largest potential for C&I solar in Africa because of the scale of the opportunity for diesel replacement. Daystar is a pioneer in the market, offering end-users increased reliability as well as lower energy costs through solar and storage systems.
Christian Wessels, co-founder and executive of Daystar Power, comments: “We are happy to partner with SunFunder in our mission to bring clean, continuous and affordable power to West African businesses in support of their growth and environmental goals. The support of SunFunder enables the beginning of a new phase of accelerated growth for our company.”
In October, Daystar Power announced it had installed its 100th solar energy system in Nigeria since it was founded in 2017. In May the same year, it raised EUR 500,000 via Trine for captive power installations in Togo & Senegal. The amount was a debt round raised via crowdfunding site Trine, a Swedish investment platform to finance solar power systems.
In April, Daystar Power entered Ghana after raising $10m for West Africa expansion. The Ghana office was its second branch in West Africa with an office in the Ghanaian capital of Accra.
In March, Daystar Power received 10 million US Dollars for expansion of solar power operations in West Africa. The $10 million USD investment was led by Verod Capital Management and Persistent Energy Capital LLC.