By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
Evolution announced on Monday, November 10, that it led a $60 million equity investment through its Evolution III Fund, in partnership with development finance institutions (DFIs) FMO and Swedfund.
The financing will support the expansion of Sedgeley Solar Group (SSG), a regional platform specializing in decentralized solar power for the commercial and industrial (C&I) sectors.
Decentralized vs. Centralized Solar Power for C&I
- Decentralized solar power refers to electricity generation that happens on-site or close to the end user, such as solar panels installed at factories, warehouses, or office buildings. Energy is consumed where it’s generated, which reduces reliance on the main grid.
- Centralized solar power, on the other hand, is generated at large solar farms and fed into the national grid. C&I consumers then draw electricity from the grid rather than generating it themselves.
Decentralized systems are particularly useful for businesses in regions with unstable grids, frequent load-shedding, or high electricity costs, as they guarantee a more reliable supply and predictable costs.
The Investment Breakdown
The $60 million equity package includes:
- $30 million from Inspired Evolution
- $20.35 million from FMO
- Additional funding from Swedfund
This investment is an important step in scaling decentralized clean energy solutions for the private sector in Southern Africa.
What Are Decentralized Clean Energy Solutions?
These solutions include on-site solar panels, energy storage systems (batteries), and smart energy management tools deployed for businesses or industrial sites. They exist to:
- Reduce dependence on unstable national grids
- Lower energy costs by offsetting expensive grid electricity
- Provide resilience during blackouts or load-shedding
- Support sustainability goals, as they are often paired with renewable energy sources
They primarily serve the C&I segment, which includes factories, offices, hospitals, warehouses, and other energy-intensive operations.
Read Also: Solar Could Unlock $2.5bn for Nigeria But the Diesel Economy Isn’t Letting Go
SSG: Engineering and Operations Expertise
SSG, formed from the merger of SolarSaver and Sedgeley, now manages over 700 solar and storage installations, with a combined capacity of 140 MW.
The company is recognized for its engineering and operational expertise, which is a significant competitive edge. Here’s why:
- Designing and installing large-scale decentralized solar systems is technically complex, requiring knowledge of electrical systems and energy storage management.
- Operations expertise ensures that systems run efficiently over years, minimizing downtime and maintenance costs.
- Few companies have this combined skill set, making SSG a trusted partner for businesses seeking reliable solar solutions.
Serving Clients Amid Load-Shedding and Rising Energy Costs
Many of SSG’s clients face frequent power cuts (load-shedding) and rising grid electricity prices. By adopting decentralized solar:
- Businesses can continue operating during blackouts
- Save on energy costs by generating their own power
- Plan energy budgets more predictably
In other words, SSG helps companies escape energy uncertainty while also reducing their carbon footprint, a win-win for cost, reliability, and sustainability.
