African Solar Companies Land Big Deals to Power Millions of Homes

Two big African solar companies have raised hundreds of millions of dollars in deals that could change how electricity reaches people across Africa. D.light raised $50 million through a green bond in June 2025, while Sun King raised $286 million using a method called securitization around the same time. These deals are giving hope that large private investors — not just charities or government groups — will start funding solar power for homes that have never had reliable electricity. Millions of families across Africa still live without steady power, and solar energy has become one of the most promising ways to fix that.

Both d.light and Sun King sell solar home systems to customers who cannot afford to pay the full price at once. Instead, customers pay small amounts over time, often using a mobile phone app. This is called the pay-as-you-go model, or PAYGo for short. It lets families get solar panels and lights right away while paying back the cost little by little.

Here is how the money deals work. The companies collect all the future payments their customers have promised to make. They bundle those promises together and use them as collateral — meaning something of value that backs up a loan. Investors who buy these bonds or securities earn money over time as customers keep making their payments, while the solar companies get a big pile of cash right away.

Sun King's top finance officer, Krishna Swaroop, called these deals 'pathbreaking' for the solar industry. He said they show that serious investors and large amounts of money are entering this field for the first time. But he warned that smaller solar companies cannot easily copy these deals, because investors usually want to see five to seven years of payment records before they trust a company enough to invest.

Sarah Malm, the head of a solar industry group called GOGLA, said years of hard work made these deals possible. Solar products have gotten better, more reliable, and easier to track. 'These deals are proof that the model works,' Malm said. She noted that customer payment promises are now rated, listed, and bought by investors in cities like London and New York.

A report from GOGLA found that more kinds of investors are getting involved in African off-grid solar. A record 47.2% of new investment in 2025 came in local African currencies, not just U.S. dollars. Eighteen new investors joined the field, including commercial banks from Nigeria, Kenya, Tanzania, and Madagascar. That means more money is coming from inside Africa itself, which is a major sign of growth.

Wangari Muchiri, who runs a clean energy company called RE.Think Energy, said these deals mark 'an important tipping point.' She explained that each successful deal makes the next one less risky and easier to pull off. But she also said the whole system needs more improvement — companies must be more ready for investment, the rules need to be clearer, and data on how well customers pay must be stronger.

Better technology is also making these deals more attractive to investors. Lithium-ion batteries now last up to 10 years, and their price has dropped by more than 90% since 2010. Better warranties and repair networks mean investors can trust the products will keep working and that customers will keep paying. Malm said all of these improvements turn small household payments into a reliable stream of money.

One last concern is whether chasing big investor returns could push companies away from helping the poorest families. Swaroop said large investors can offer cheaper loans over longer time periods, but there is a real risk that companies will focus only on easier-to-reach customers. The people who need solar power the most — those in remote, low-income areas — could get left behind. Keeping those families in the picture will be one of the biggest challenges as this market grows.