Off Grid Electric raises USD 45m for distributed solar leasing in Africa

Off Grid Electric has secured about USD 45 million (EUR 41.5m) in debt financing to support the installation of distributed solar and energy storage systems for African homes and small businesses.

The company, a solar installer with dual headquarters in Tanzania and the US, said on Thursday that the Packard Foundation, Ceniarth, Calvert Foundation and other family offices will lend up to USD 40 million to a new investment vehicle, which is the first of its kind for distributed solar in Africa. At the same time, the US Agency for International Development (USAID) will grant a further USD 5 million to the vehicle through its Development Innovation Ventures programme.

Through its solar leasing platform, Off Grid Electric installs solar arrays for more than 10,000 households and businesses each month. “We have pioneered a business model that allows consumers with no formal credit to use their existing energy budget to finance solar. We simply redirect funds they were already paying for kerosene and batteries to a solar lease payment,” said Xavier Helgesen, the company’s co-founder and CEO.

The firm has partnered with the national government and Tanzanian Investment Centre to power one million households in Tanzania over the next three years.

As a result of the new financing vehicle, Off Grid Electric has now raised some USD 70 million in equity and debt funding this year, including the proceeds from its recent USD-25-million venture capital financing round.

(USD 1.0 = EUR 0.921)

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