It has been a record year for beyond the grid solar investment.
Over $45 million in investments have closed in the past year, including: $1.8 million for plug and play solar provider BBOXX, $11 million for industry pioneer d.light, and $20 million for mobile money pioneer M-KOPA. Not to be left out of a potential $12 billion market, three more new major funding announcements have taken place in the past two weeks alone.
First, SolarNow, the solar asset finance company operating in East Africa, announced it closed a round of equity funding of €2 million (U.S. $2.56 million) from Novastar Ventures and impact investor Acumen. Uganda-based SolarNow is, in the words of CEO Willem Nolens, “not just a solar product company or a pay-as-you-go service provider; we are an asset finance and distribution company with a focus on renewable energy.”
SolarNow is living proof of two things: these energy markets are moving beyond just a light bulb, and its all about unlocking financing. SolarNow sells 50-500-watt solar home systems through an innovative in-house credit facility in Uganda, Tanzania, and Kenya designed to support a range of appliances including lights, radios, TVs, and refrigerators. This approach to solving affordability and distribution challenges is incredibly important as an alternative to partnering with financial institutions, such as microfinance institutions. The new round of investment will allow SolarNow to respond to growing demand from existing customers and to expand their distribution network to new East African markets.
On the heels of the announcement from SolarNow, ‘Tower Power’ pioneer OMC Power announced that it has secured major funding from Singapore-based Energy Investment Tech Pte. Ltd. OMC Power, one of the companies featured in our video with the Center for American Progress about energy poverty in India, is at the cutting edge of micro-grid development, proving that micro-grids may just be the next big opportunity for beyond the grid markets.