Off Grid Electric, a San Francisco based startup that develops rooftop solar and battery systems in Africa, announced that it has raised $55 million in funding. According to a statement released by the startup, the Series D funding round was led by Helios Investment Partners and other investors included GE Ventures, which is the venture capital subsidiary of General Electric Co. The company’s plans for expanding into Ghana are a part of its partnership agreement with Electricite de France, SA.

The off grid solar and battery systems are seen as a method of providing power to more than 600 million individuals in Sub-Saharan Africa. The falling prices of solar panels has allowed startups such as Off Grid to offer consumers a pay-as-you-go leasing option as an alternative to the usage of traditional kerosene lamps and diesel generators.

“The fundamental economics drive this all,” said Xavier Helgesen, Co-founder and Chief Executive Officer of Off Grid, in an interview. “I keep telling people that an electron from a solar panel is the cheapest electron you are going to find pretty much anywhere in the world,” he added,

According to Bloomberg News Energy Finance, since 2015, the pay-as-you-go home solar systems have more than doubled in number worldwide, rising to approximately 1.5 million homes in October 2017. The segment saw investments exceeding $ 200 million in 2016.

“Solar and storage kits are playing a transformational role in areas where power is either very unreliable or not available at all, which is the case in vast parts of Africa,” Itamar Orlandi, an analyst for Bloomberg News Energy Finance was quoted saying.

The startup is backed by prominent investors including Tesla Inc., Total SA and DBL Partners. The company leases systems that consist of solar panels, batteries, lights, mobile phone chargers and televisions and currently powers over 150,000 households and business spread across Tanzania, Rwanda and Ivory Coast. The company’s payment system allows residents to make payments via their mobile phones.

(Picture courtesy: Off Grid Electric)