Private equity deals signal profits in off-grid solar

This analysis is by Itamar Orlandi for Bloomberg New Energy Finance. It appeared first on the Bloomberg Terminal. 

The notion that solar can provide basic energy in areas beyond the reach of the central grid has been around for decades. Investment has now picked up. In the last few months, private equity players committed more than $70 million to start-ups in Africa, trying to turn the theory into a profitable business model. Total investments in the 5-to-10 companies selling solar home systems, bundled with consumer finance and mobile payments, was more than $200 million last year. Companies such as Lumos, Off-Grid Electric and Mobisol are now likely heavily capitalised with equity. To deliver competitive margins on their business model, they will probably seek even larger debt injections soon.

Investments In Pay-As-You-Go Solar Companies ($ Million)

off-grid solar investment


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