Kenya-based solar company Sun King has announced plans to invest up to $150 million to expand electricity access in Ethiopia by 2030, targeting millions of households and small businesses currently outside the national grid.
The disclosure was contained in a joint statement issued with the Ethiopian Investment Commission, which confirmed that the company will establish a local subsidiary as part of its expansion into the country.
According to the statement, the investment forms part of Sun King’s broader $1.3 billion Africa-wide growth plan.
The initiative is expected to deliver off-grid solar solutions to about 2 million Ethiopian customers within the timeline.
Ethiopia’s electricity access gap
Ethiopia has a population of over 120 million. It has made major investments in power generation, including the Grand Ethiopian Renaissance Dam, but electricity access remains uneven.
The country produces hydropower and exports electricity to neighbouring countries. Electricity access remains limited in many rural and underserved communities
The Ethiopian Investment Commission noted that the partnership is designed to support ongoing efforts to expand energy access through private sector participation.
“The agreement with Sun King aligns with Ethiopia’s priority to accelerate electrification and improve access to reliable energy for households and businesses,” the Commission stated.
Extending the national grid to remote areas has been slow, partly due to high infrastructure costs and dispersed settlements. Off-grid solutions are an alternative in such areas
Sun Kinga’s solar expansion push
Sun King said its expansion will focus on deploying solar home systems and other off-grid technologies that can be installed without connection to the national grid.
The company explained that its products are typically distributed through pay-as-you-go models, under which customers make small, incremental payments.
Sun King stated that the approach has supported its operations across multiple African markets.
“Our goal is to make reliable and affordable solar energy accessible to households and small businesses that are currently underserved,” the company said.
Meanwhile, the firm confirmed that it already operates in 14 African countries and plans to deepen its footprint in East Africa through the Ethiopian market.
Off-grid solar deployment plan
The move comes as governments across Africa increasingly adopt a dual approach to electrification, combining large-scale grid projects with decentralized energy systems.
In Ethiopia, national electrification plans have previously prioritised grid expansion. However, off-grid solar has gained attention as a faster option for reaching rural populations.
Data from global energy programmes show that distributed solar systems are often deployed in areas where grid extension is not immediately viable due to cost or terrain.
The Ethiopian Investment Commission stated that the partnership supports efforts to expand energy access and that off-grid providers can complement existing infrastructure.
Electricity access remains limited
Access to electricity remains uneven across sub-Saharan Africa, with millions of households still relying on alternatives such as kerosene and diesel generators for lighting and power.
In Ethiopia, the gap persists despite large-scale generation projects, as transmission and distribution networks have not fully kept pace with demand.
Off-grid solar providers have increasingly stepped in to address this gap by delivering standalone systems directly to consumers.
Sun King’s entry into Ethiopia follows similar expansions in other African markets, where solar home systems are used to power lighting, charge mobile devices, and support small-scale commercial activities.
