HomeRegional NewsAfricaCrowd-based global solar leasing platform secures $2.5m funding

Crowd-based global solar leasing platform secures $2.5m funding

Crowd-based global solar leasing platform, Sun Exchange, has secured $2.5 million in the form of a convertible note from ARCH Emerging Markets Partners Limited’s Africa Renewable Power Fund (ARPF).

This follows the company’s close of a $4 million Series A funding round in 2020, led by a $3 million investment from ARCH.

The latest investment enables Sun Exchange to continue scaling its success using its crowd-based leasing platform to facilitate solar power for small-to-medium organisations in sub-Saharan Africa, the segment most impacted by rising energy costs, unreliable grid infrastructure and costly backup diesel generators.

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Through its innovative platform, Sun Exchange has facilitated solar power for 45 businesses, schools, farms and other organisations in Southern Africa. In March, the company successfully completed a $1.4 million crowd sale for a landmark 500kW solar and 1MWh battery storage project for agriculture leader, Nhimbe Fresh.

The project, Sun Exchange’s largest to date and the first outside of South Africa, is also currently the largest crowdsourced project in Africa. Using the company’s platform, more than 1,700 people from 98 countries bought solar cells that will soon power the Nhimbe Fresh packhouse and cold storage facilities. Construction of the plant is now underway.

William Barry, managing director of ARCH (Renewable Energy Strategy), said: “Sun Exchange continues to demonstrate momentum as a fast-emerging leader eliminating obstacles to solar proliferation in Africa. ARCH is committed to working with our portfolio companies and supporting their growth, and we are proud to continue partnering with Sun Exchange on its journey to accelerate the global energy transition.”

Abraham Cambridge, CEO & Founder of Sun Exchange, said: “Addressing the climate emergency is the top priority on the world’s agenda, as evidenced by last week’s conversations at the UN General Assembly leading up to COP26. While policy action and diplomacy are critical at this juncture, the private sector and individuals have a crucial role to play. Powered by our global community, Sun Exchange closes the solar finance gap for organisations in Africa, addressing the challenge of our lifetime while supporting sustainable economic growth. We are delighted that ARCH has reaffirmed its belief in Sun Exchange and our mission through this investment.”

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Through Sun Exchange, anyone, anywhere in the world can easily buy solar cells and automatically lease them to be installed in high-impact solar projects, powering businesses and organisations in sunny emerging markets. Solar cell owners offset their carbon footprint while earning from the clean electricity generated. In turn, businesses and organisations can go solar at no upfront cost, minimising their energy costs and climate impact.

Nomvuyo Tena
Nomvuyo Tena is a Content Producer at Clarion Events Africa and is as passionate about the energy transition in Africa as she is about music and Beyonce.