Sun King, an off-grid solar energy company, has raised $40 million in equity financing from Lightrock to expand decentralised solar systems across Africa and Asia.
The funds will be used to strengthen installation, distribution, and service networks, and to advance the company’s product pipeline.
This investment comes at a time when more than 750 million people globally still lack access to electricity, with the majority in sub-Saharan Africa and parts of Asia.
Founded 18 years ago, Sun King operates a distributed energy utility model combining solar generation, energy-efficient appliances, installation, and customer financing. Payment plans for 12 to 24 months allow low-income households to access solar solutions.
The company reports that monthly deliveries have increased from 10,000 solar kits in 2017 to over 330,000 today. It aims to reach one million kits per month by 2030, potentially serving 200 million people.
Sun King currently operates in 11 African countries and maintains more than 470 retail and service points.
Infrastructure expansion strategy
The $40 million financing will be used for product development and service infrastructure expansion.
The company has indicated plans to introduce or enhance products, including lithium-ion battery storage, IoT connectivity, and energy management software.
Service network expansion is intended to provide maintenance and support for installed solar systems, particularly in rural areas. Strengthening infrastructure is expected to reduce system downtime and maintain customer service capacity.
In Kenya, Sun King completed a $156 million securitization deal, the largest local-currency securitization in Sub-Saharan Africa outside South Africa.
The move converted future customer payments into investable assets, enabling the delivery of solar systems to 1.4 million households and businesses.
The company operates a pay-as-you-go (PAYG) model, allowing customers to make small daily payments through mobile money, sometimes as low as US$0.19.
Earlier investment rounds, including a $260 million Series D financing, helped expand products and distribution networks. Sun King has provided over $1.3 billion in solar loans while expanding energy access.
Financing and investment in off-grid solar
In sub-Saharan Africa, committed financing for decentralized energy solutions reached $870 million in 2023, up from $725 million in 2019.
The International Energy Agency (IEA) projects that achieving universal electricity access by 2035 will require annual investments of $6 billion in mini-grids and $5 billion in solar home systems.
Mobile money and pay-as-you-go (PAYG) models are used by some off-grid solar companies to collect customer payments. Telecom operators are involved in supporting deployment and maintenance of these systems.
Sun King plans to deliver over 50 million additional solar kits in Africa by 2030, potentially providing electricity access to 200 million people.
This effort complements broader regional initiatives such as the World Bank and African Development Bank’s Mission 300, which aims to extend electricity access to 300 million people by 2030.
