Conversation with Kunle Odebunmi of Arnergy: PAYG Solar Home Systems

This tweetchat was held on the 30th of June 2016

Arnergy is a for-profit mini-utility social enterprise that provides solar energy solutions powered by technology. Arnergy’s mission is to drive West-Africa’s renewable utility industry with technology; providing clean energy. Arnergy believes “a life without electricity is a life with limited opportunities”. Arnergy’s total installed capacity till date (at the time of the interview) is more than 400kW in Decentralised Renewable Energy (DRE). The company has provided uninterrupted electricity to 5 communities in Osun, Edo and Kaduna States.

Please tell us a bit about Arnergy

Arnergy is a for profit social enterprise that provides mini-utility leveraging technology to deploy solar to homes and MSME across West Africa. We believe a life without electricity is a life with limited Opportunities. We proffer local solution to local problem in Nigeria. Arnergy is a Distributed Energy Service Company (DESCO) founded to provide clean, affordable energy to homes and MSMEs in Nigeria.

What challenges did you face starting out in 2014?

We devoted tremendous efforts debunking several myths about solar in Nigeria. Public perception on solar was extremely low, huge upfront cost to acquire solar was and is still a barrier to many Household & SMEs. Building a unique brand in a fragmented sector is very daunting at the beginning. None existence of GIS data for off-grid communities is still a challenge to bring energy access to rural communities.

We are curious to know more about Arnergy’s PAYG Solar Home System

The huge upfront cost discourages millions of Nigeria to widespread solar adoption.

The needed financing mechanism is also not readily available for solar adoption in Nigeria. Arnergy PAYG Solar Home System was designed primarily to make solar affordable to millions of Nigerians & de-risk investment. PAYG as a financing vehicle makes it possible for us to provide radically affordable solar leasing platform to Nigerians. PAYG allows household to pay N50 ($US0.25) daily to enjoy uninterrupted power powering 3 LED, TV, Fan, mobile phone charging & radio. Arnergy PAYG also allows MSME’s to power business appliances such as hair-clippers, tailoring machine, printers, and laptops

What is the community’s reaction to energy at the start of a project?

The villagers thought here comes another free World Bank project but we educate them we run a sustainable commercial project. We have deployed off-grid solar in most of the hardest-to-reach and difficult communities in Nigeria with several lessons learnt.

Does Arnergy prefer the micro-grid model or solar home system model for community solutions, why?

There isn’t one model to fit Nigeria’s hydra-headed energy crisis, Arnergy chooses either model using proprietary decision tool.

What is the community’s reaction to Arnergy at the end of a project?

Literally, we become friends, families and title-holders in most communities we work. Quality of life has improved, 98% of Arnergy’s customers testify that the solution have improved their productivity at night and their children’s education.

What challenges (if any) have you experienced with the pay-as-you-go financing model?

The teething challenges are around the logistics as inadequate infrastructure hampers the distribution network. However our resilient team has cracked the nuts by the emergence of ACE (Arnergy Centre Entrepreneurs) growing across thenation.

How has Solar impacted small business owners in particular?

In Nigeria, about 40% of business operation goes into self power generation. Many businesses have gone bankrupt due to power outages. SMEs that Arnergy has installed solar for now run sustainable energy; we have done schools, supermarkets, filling stations, and hotels.

What would you say has been a reason Arnergy is successful?

Successful?! We are a Work in progress! The secret source is the amazing team, support from partners and increasing Grace of God

What is your most challenging project to date, and why?

Our first 37.8kWp micro-grid powering 200homes in Nigeria was challenging, the community is 45km from the tarred expressway

For more enquiries of the work Arnergy is doing, visit their website on www.arnergy.com or send a mail to info@arnergy.com