PEG Africa, a company offering pay-as-you-go solar to consumers and businesses in West Africa has received a $5 million investment from European Union initiative ElectriFi. The company says it has now secured more than $50 million and plans a major expansion.
PEG Africa says it already serves more than 400,000 customers in Ghana, Senegal, and Cote d’Ivoire.
PEG Africa has received a $5 million investment from ElectriFi, an EU initiative which backs early-stage companies and projects focused on renewables and improving access to electricity.
The sum adds to the $25 million PEG raised in a Series C funding round in April, and the company says it has now raised more than $50 million in total. The money, said PEG, will be used to “continue rapid growth in existing markets”.
The pay-as-you-go (PAYG) solar company operates in Ghana, Senegal and Cote d’Ivoire, serving more than 400,000 customers. PEG Africa says it has plans to expand in those markets to work on solar-powered irrigation projects and larger PV systems.
“PEG has almost doubled in size every year since 2015,” said CEO Hugh Whalan, “and the fact we are now able to raise a significant amount of our funding in debt demonstrates that our approach is financially sustainable. We are delighted to work with ElectriFI to further accelerate our growth.”
Questions were raised as to the financial sustainability of the PAYG solar business model this year when Berlin-based supplier Mobisol entered insolvency proceedings. However, that company’s acquisition by French energy giant Engie this week, as well as the continued success of other companies in the field, suggests there is still significant profit in the business model as a way to affordably bring electricity to people in areas under-served by grid power.
Image: Flickr/Petr Kosina