Fewer emissions, lower costs, and smarter energy access. That’s what Mergence is backing with a fresh R60 million ($3.29 million) investment in Solarise Africa, one of the continent’s fastest-growing energy-as-a-service providers.
This strategic investment highlights the growing momentum behind commercial and industrial (C&I) renewable energy adoption, positioning Solarise Africa as a key player in Africa’s clean energy shift.
Why This Investment Matters
South Africa’s energy sector faces significant challenges, from an unreliable grid to recurring load-shedding. Businesses are increasingly turning to renewable energy to ensure reliability, reduce costs, and meet sustainability goals.
Mergence’s R60M ($3.29 million) mezzanine facility, structured through preference shares, follows a previous R160M ($8.8 million) investment in 2024, signalling strong confidence in Solarise Africa’s ability to deliver scalable, high-impact energy solutions.
This funding will accelerate the deployment of solar photovoltaic (PV) and hybrid energy systems for C&I clients, helping businesses lower electricity costs and reduce carbon footprints.
“Our additional investment in Solarise Africa reflects our belief in the resilience of the C&I renewable energy sector and in Solarise Africa’s ability to deliver on its promise,” said Mosa Molebatsi, Head of Private Debt at Mergence Investment Managers.
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Solarise Africa: Leading the Charge in Renewable Energy
Founded to bridge the financing gap for C&I solar projects, Solarise Africa has emerged as a pioneer in decentralised energy solutions.
With operations spanning South Africa, Kenya, and beyond, the company provides tailored financing and rental solutions that make clean energy accessible to businesses in sectors like manufacturing, retail, and education.
Key Achievements:
- 28 MWp Target by 2025: Solarise Africa is on track to reach 28 megawatt-peak (MWp) of installed solar capacity in South Africa by the end of 2025.
- 200 MW Goal by 2030: The company aims to scale its impact to 200 MW across Africa, reinforcing its leadership in the renewable energy market.
- Notable Projects: Solarise Africa has powered transformative projects, such as a 1.8 MWp rooftop solar installation for United Aryan Ltd in Kenya, the largest of its kind in East Africa at the time, and a 1.3 MWp solar PV system for Extrupet, a leading plastic recycler.
The Bigger Picture: Why C&I Solar Is Thriving
Despite a decline in residential solar uptake in South Africa due to reduced load-shedding in 2024, the C&I solar market remains robust.
Businesses are investing in renewable energy not only to mitigate grid instability but also to achieve cost savings and align with global sustainability goals.
Solarise Africa’s innovative financing model eliminates the need for expensive upfront investments, offering manageable installment payments and short payback periods.
This approach has made clean energy a viable option for industries ranging from agriculture to pharmaceuticals.
By the Numbers:
- 53% Growth: Solarise Africa’s solar capacity grew from 8,286.50 MWp in 2022 to 12,681.07 MWp in 2023.
- 40% Grid Reliability Decline: C&I sectors like data centres and manufacturing face significant power challenges, driving demand for solar solutions.
- 15,000 Jobs by 2030: Mergence’s broader investments, including partnerships like the Africa Decarbonisation Fund I, aim to create thousands of jobs while reducing carbon emissions.
Mergence’s Commitment to Sustainability
Mergence Investment Managers, a Black-owned institutional fund manager, has a strong track record in impact investing.
With over R3 billion ($168,000,000) raised across renewable energy, housing, and digital infrastructure, Mergence is a trailblazer in ESG-led investments.
Their collaboration with Solarise Africa builds on a history of supporting sustainable projects, including a R450M ($25.3 million) renewable energy plant refinancing in 2020 with Third Way Investment Partners.
This latest R60M investment follows a successful refinancing of Solarise Africa’s senior debt in 2024, showcasing a strengthened capital structure and enabling further expansion.
Advised by PSG Capital, the deal highlights Mergence’s strategic focus on promoting economic and environmental benefits.
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What’s Next for Solarise Africa?
With this new funding, Solarise Africa is set to:
- Expand Solar PV and Hybrid Systems: The capital will finance new installations for C&I clients, enhancing energy reliability and sustainability.
- Strengthen Regional Presence: The launch of RUBiSOL, a joint venture with RUBiS Energy Kenya in December 2024, aims to bring renewable solutions to East Africa’s industrial sector.
- Drive Climate Goals: By reducing reliance on coal-powered grids (which account for ~50% of Southern Africa’s energy), Solarise Africa is contributing to a lower-carbon economy.
Want to learn more about Africa’s clean energy revolution? Follow Solarise Africa’s journey at solariseafrica.com or explore Mergence’s impact-driven investments at africaglobalfunds.com.
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Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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