All-On & Salpha Energy sign $1mn investment

Salpha Energy Nigeria has secured a $1 million investment from All-On to expand the company's solar home systems distribution business in rural and peri-urban areas across Nigeria, including the Niger Delta region. The CEO of Salpha Energy, Sandra Chukwudozie, appeared on CNBC Africa to discuss the recent funding milestone and shed light on the company's initiatives in the region. With the investment from All-On, Salpha Energy aims to reach communities that lack adequate access to energy solutions, particularly in the Niger Delta, where the need is most urgent. The focus is on providing entry-level solar solutions to homes and businesses in underserved areas, facilitating the transition to clean energy and contributing to climate change objectives. The key theme of the interview centered on the progress and challenges of off-grid solutions in Nigeria. Sandra Chukwudozie highlighted significant strides in this area, attributing progress to global partnerships and initiatives like the Georgequishel program and Scaling Solar, supported by institutions like the African Development Bank and the World Bank. These efforts have encouraged private sector involvement in deploying solar solutions, impacting over a million people and diversifying energy sources in the country. The CEO emphasized the importance of reaching marginalized populations and bridging the energy access gap through renewable technologies. One key point discussed was the sustainable business model of Salpha Energy, which operates as a profit-driven enterprise rather than relying on grant funding. The company offers energy solutions through two models: outright payments or pay-as-you-go plans, making systems more accessible to low-income consumers. With over 350 distributors nationwide, Salpha Energy is expanding its reach through franchises to serve underserved communities effectively. This approach ensures financial sustainability while fulfilling the mission of providing energy access to all Nigerians. Another critical aspect addressed in the interview was the description of Salpha Energy's solutions, focusing on entry-level systems that provide lighting, phone charging, and entertainment options to rural customers. The company aims to transition these users to higher-level productive systems capable of powering appliances like TVs, laptops, fans, and refrigerators. By empowering customers with clean energy access, Salpha Energy contributes to improving their quality of life and promoting sustainable energy usage. In terms of challenges, Sandra Chukwudozie highlighted funding limitations and payment collection as key obstacles to scaling the business. Building strategic partnerships with financial institutions and telecom companies has been instrumental in overcoming these challenges and expanding market reach. However, the CEO acknowledged the need for supportive national policies to facilitate the localization of the solar value chain, reduce import tariffs, and make solar solutions more affordable for consumers. Policy changes aligning with global trends of cost reduction in solar technologies can further accelerate the adoption of clean energy solutions in Nigeria.