KEY POINTS
- Daystar Power and Sterling Bank launched a solar financing scheme removing upfront costs for Nigerian businesses.
- Sterling Bank created a dedicated credit facility to fund commercial and industrial transitions to solar energy.
- The scheme combines long-term Power Purchase Agreements with bank financing to replace expensive diesel generators.
Nigerian businesses spend a disproportionate share of their operating budgets keeping the lights on. Two companies want to change the economics of that equation.
Daystar Power and Sterling Bank have expanded their existing partnership with a new financing model designed to help commercial and industrial customers switch to solar energy without the burden of large upfront capital. The arrangement was announced over the weekend under a renewed Memorandum of Understanding between the two companies.
The model pairs Sterling Bank’s financing capacity with Daystar Power’s solar-hybrid infrastructure and long-term Power Purchase Agreements. Under a PPA, a business accesses and uses a solar installation without buying it outright, paying instead for the power generated over a contracted period. Sterling Bank’s dedicated credit facility covers the upfront costs that have historically blocked companies from making the transition.
How the scheme works in practice
Eligible commercial and industrial customers apply through Sterling Bank for the credit facility, which funds the capital requirements for a Daystar Power solar-hybrid installation. Once operational, the business pays for the energy it consumes under a fixed long-term agreement, replacing unpredictable diesel and generator costs with a more stable and lower monthly outlay.
Daystar Power CEO Yischai Beinisch said the design was intentional. “This partnership combines the strengths of Daystar Power and Sterling Bank to make renewable energy accessible to industrial customers,” he said. “Together, we will deliver cleaner, more reliable, and affordable energy to power industry in Nigeria.”
Sterling Bank’s Group Executive for Corporate and Investment Banking, Dele Faseemo, said the bank recognises energy access as one of the biggest constraints on business growth in Nigeria. “Through this partnership, we are introducing an innovative financing structure that removes the burden of significant upfront capital investment and enables businesses to transition seamlessly to cleaner, more cost-effective energy solutions,” he said.
The problem the scheme is designed to solve
Nigeria’s electricity supply remains unreliable, forcing businesses to run diesel and petrol generators that consume large portions of operating budgets. Rising fuel prices have made that cost increasingly unsustainable. Daystar Power, a member of the Shell Group, has built its West Africa business around helping organisations reduce those costs while lowering their carbon footprint. Sterling Bank brings the local financial infrastructure to make the transition affordable at scale.
The partners said the collaboration would allow businesses to benefit from international engineering standards while being backed by a leading Nigerian commercial lender.
