Ghana-based pay-as-you-go solar firm PEG has raised GHS13.2 million (US$3.4 million) to expand its presence in the West African country.
The firm, which targets remote and rural communities, is aiming to install 500,000 systems in West Africa over the next five years.
Its latest funding round was led by France-based I&P Afrique Entrepreneurs and attracted investment from Impact Assets Emerging Markets Climate Fund, French investment fund ENGIE Rassembleurs d’Energies, German development finance institution DEG and US debt provider SunFunder.
PEG focuses on households earning US$1-10 per day, many of whom are unbanked. It offers systems for GHS2 (US$0.5) per day over a year, payable through mobile money, after which customers own their system outright. The solar units offer functions such as lighting, mobile phone charging, a lantern and a radio.
“PEG is already the largest PAYG company in Ghana, and we see the off-grid household energy market here as a massive opportunity. Our investors recognise that PEG’s early successes in reaching thousands of customers in Ghana barely scratches the surface of demand,” said Hugh Whalan, CEO of PEG.
West Africa is proving particularly fertile territory for pay-as-you-go solar, with UK firm Azuri Technologies unveiling plans earlier this year to install 100,000 off-grid systems in Ghana over the coming years.
Other solar segments are taking longer to bear fruit. Earlier this year Ghana’s utility-scale PV ambitions suffering a setback when the government announced a 150MW cap on large grid-connected projects.