South african distributed solar provider SolarSaver secures $60M for regional expansion

Funding from Inspired Evolution, FMO, and Swedfund will finance small-scale solar and battery installations for SMEs across South Africa, Namibia, Botswana, and Zambia

SolarSaver, a South African distributed energy company, has closed a $60 million equity round to expand solar power access for small and medium-sized businesses throughout Southern Africa.

The company develops, owns, and operates small-scale solar photovoltaic and battery storage systems installed on customer premises. SolarSaver supplies electricity through power purchase agreements and rent-to-own contracts that eliminate upfront capital requirements for clients, addressing barriers to solar adoption among businesses constrained by working capital limitations.

SolarSaver currently operates more than 700 installations with combined generation capacity of approximately 140 megawatts across Southern Africa. The new capital will finance deployment of additional distributed solar and battery systems in South Africa, Namibia, Botswana, and Zambia, targeting small and medium enterprises experiencing electricity supply disruptions and elevated energy costs.

The funding round was led by Inspired Evolution's Evolution III Fund, with participation from FMO, the Dutch development bank, and Swedfund, Sweden's development finance institution. The investment structure combines commercial capital with development finance, reflecting investor appetite for distributed renewable energy assets in emerging markets experiencing grid reliability challenges.

"Access to dependable and affordable energy is essential for private sector growth, job creation and climate resilience," said Jonas Kolijn, senior investment manager for energy and climate at Swedfund. "Through this investment, we help strengthen energy security and support fossil-free economic growth in one of Africa's key economic regions."

SolarSaver's business model addresses a market gap created by unreliable grid electricity and capital constraints that prevent many SMEs from self-financing solar installations. By retaining ownership of solar assets and selling electricity as a service, the company enables businesses to access renewable power without balance sheet impact, while generating revenue through long-term electricity supply contracts.

The Southern African markets targeted by SolarSaver's expansion experience frequent load shedding and power outages that disrupt business operations and require expensive diesel generator backup. Solar installations with battery storage provide alternative electricity supply during grid failures while reducing dependence on fossil fuel generation.

Distributed solar deployment for commercial and industrial customers has accelerated across Southern Africa as renewable energy costs have declined and grid reliability has deteriorated. Development finance institution participation in transactions like SolarSaver's reflects policy objectives to support private sector renewable energy deployment in markets where grid infrastructure requires substantial investment to meet electricity demand growth.