Ignite Power Secures $15M to Expand Solar Solutions for Businesses in West Africa

Lagos-based renewable energy company Ignite Power has secured a $15 million investment from the Afrigreen Debt Impact Fund to expand solar energy solutions across West Africa.

This funding focuses on the commercial and industrial (C&I) sectors, with Nigeria as the initial target.

The agreement includes an upfront disbursement of $4 million, with the remaining $11 million dependent on the success of early-stage projects.

This phased approach reflects Afrigreen’s strategy to support renewable energy initiatives that make a tangible impact in Africa.

Westa Solar, a subsidiary of Ignite Power, specializes in providing solar energy through Power Purchase Agreements (PPAs) and leasing models.

These options remove the need for large upfront payments, making solar power more accessible for businesses.

In Nigeria, where grid power is unreliable and diesel generator costs are high, solar energy offers a reliable and cost-effective alternative.

Businesses can cut operational expenses, reduce dependency on diesel, and achieve greater energy stability.

Yariv Cohen, CEO of Ignite Power, highlighted the role of solar energy in helping businesses lower costs and improve efficiency despite unreliable power sources.

He added that the investment would allow Ignite Power to reach more businesses and help them switch to clean energy without financial obstacles.

A key part of the deal is an innovative hedging structure developed with the International Finance Corporation (IFC).

The system lets Ignite Power receive funds in U.S. dollars while repaying the equivalent amount in local currency at the exchange rate during repayment.

This approach reduces the risks linked to currency fluctuations, a common challenge in markets like Nigeria.

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The solar energy market for C&I businesses in West Africa holds enormous potential, with estimates suggesting over 500 megawatts of untapped capacity.

Many businesses are now turning to solar power to address energy challenges. Westa Solar has already deployed 3 megawatts of solar systems across various projects and plans to scale up operations using this funding.

The company will focus on industries such as manufacturing, logistics, and retail, providing solutions that fit their specific energy needs.

Afrigreen’s Managing Director, Alexandre Gilles, expressed confidence in partnering with Ignite Power, citing the company’s proven track record and clear vision for expanding solar energy in West Africa.

Afrigreen’s broader strategy focuses on supporting projects that improve energy access in underserved regions.

This investment is expected to deliver economic and environmental benefits across West Africa.

By replacing diesel generators, solar power systems help businesses save money and reduce their carbon footprint.

This shift also improves energy security, boosts industrial productivity, and supports sustainable economic growth.

Ignite Power’s partnership with Afrigreen comes at a critical time for West Africa’s energy sector.

By combining financial innovation with advanced solar technology, this collaboration aims to transform how businesses access and use energy.

Successful implementation of these projects could encourage further investments in renewable energy, contributing to a cleaner and more resilient future for the region.