Africa's off-grid solar sector courts mainstream investors with landmark financing deals

NAIROBI, Kenya (AP) — Landmark fundraising deals by two of Africa’s largest off-grid solar companies are raising hopes that private capital markets could become a major source of funding to help bring electricity to millions of homes lacking access to reliable power.

A $50 million green bond issued by affordable energy company D.light in June, and $286 million in securitized debt by rival Sun King mid-2025 are testing whether institutional investors will back a pay-as-you-go business model on a commercial scale.

Such strategies are fueling debate over whether Africa’s off-grid solar sector has reached a financial turning point, attracting mainstream investors beyond its traditional base of donor agencies and development finance institutions.

Both d.light and Sun King sell solar home systems and appliances to households that lack electricity using a pay-as-you-go (PAYGo) model. Customers pay in small instalments, often through mobile apps, instead of putting up the full price upfront. The remaining future payments, known as receivables, are bundled together and used as collateral for bonds or other securities that can be sold to investors, allowing the two companies to raise fresh capital immediately.

Sun King’s global chief financial officer, Krishna Swaroop, called the transactions “pathbreaking” for the industry.

“They demonstrate the entry of a serious scale of commercial capital, investors and instruments not seen before in this sector,” Swaroop said.

But he cautioned that the deals reflect years of operational experience that many smaller companies lack. Investors typically expect to see five to seven years of repayment data before considering similar financing structures.

Securitization allows solar firms to bundle future payments such as Pay-go receivables and sell them to investors to raise capital. While it can lower financing costs for larger firms, the process requires costly legal, regulatory and credit guarantees. Those fixed expenses make securitization uneconomical for smaller firms.

“The biggest risk that still deters mainstream investors is the portfolio quality risk,” Swaroop said, referring to the possibility of loans not performing as expected. “Many off-grid companies struggle to quantify and explain the portfolio quality data to investors in terms they understand.”

The financial tools the companies are using are unfamiliar outside capital markets.

A green bond works like a conventional bond, purchased by investors who earn interest payments. The proceeds finance environmentally beneficial projects. In d.light’s case, the bond is backed by a special-purpose firm holding thousands of PAYGo customer account receivables.

Sun King’s transactions use securitization, a financing technique widely used in mortgage and auto-loan markets. Instead of mortgages, the underlying assets are future customer payments for solar systems. That allows the company to convert years of future repayments into immediate capital.

Industry leaders say the deals show the market for climate financing has matured.

Years of improvements in product quality, certification and repayment records have made customer receivables increasingly attractive to investors, said Sarah Malm, executive director of the off-grid solar industry association GOGLA.

“These deals are proof that the model works,” Malm said. “Today, PAYGo receivables are rated, listed and bought by institutional investors in London and New York.”

GOGLA’s 2025 Investment Data Report found Africa’s off-grid companies are increasingly attracting sophisticated financing, with local-currency investment reaching a record 47.2% of funding. The rest was U.S. dollar-denominated. It said 18 new investors were participating, including commercial banks in Nigeria, Kenya, Tanzania and Madagascar.

Wangari Muchiri, founder and chief executive of Africa-based clean energy transition firm RE.Think Energy, said the transactions represent “an important tipping point” rather than isolated successes.

“Every successful transaction reduces perceived risk and makes the next one easier to finance,” Muchiri said, adding that wider adoption will require more investment-ready companies, standardized financing structures, stronger performance data and supportive regulation.

Analysts caution that the transactions still rely on significant credit enhancements, such as a full guarantee from the Green Guarantee Co., which mobilizes private capital for climate investment in emerging markets.

It backed d.light's green bond, substantially reducing the risk for investors, said Penny Herbst, senior energy adviser at the Rabia Transition Initiative, a nonprofit energy transition research firm.

“While it may be a first of its kind, it is significantly de-risked,” Herbst said. She noted that because the bond was privately placed, key pricing and guarantee details remain confidential.

Supporters argue that if such financing becomes more common, it could reshape Africa’s electrification efforts.

Improved technology is helping. Lithium-ion batteries now last up to 10 years, and battery prices have fallen by more than 90% since 2010, Malm noted. Independent product certification, warranties and repair networks have further reduced investor risk.

“All of this matters to an investor because it is what turns a stream of household payments into a predictable, well-performing financial asset,” she said.

Swaroop said one remaining challenge is ensuring that commercial returns don't deter investors from helping the poorest households.

“Theoretically, capital markets and institutional investors can provide cheaper and longer-tenured capital,” he said. “But we also need to ask whether chasing capital-market-level returns leads companies toward larger, more creditworthy customers and away from the hardest-to-reach, lowest-income segment.”

The Associated Press’ climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

Solar panels cover the parking lot of Garden City Mall in Nairobi, Kenya, Tuesday, July 16, 2026. (AP Photo/Andrew Kasuku)

A man walks past solar panels displayed for sale in Nairobi, Kenya, Tuesday, July 16, 2026. (AP Photo/Andrew Kasuku)

A solar power plant is seen at the car park of Two Rivers Complex in Nairobi, Kenya, Tuesday, July 16, 2026. (AP Photo/Andrew Kasuku)

A solar power plant is seen at the car park of Two Rivers Complex in Nairobi, Kenya, Tuesday, July 16, 2026. (AP Photo/Andrew Kasuku)

Solar-powered street lights are displayed for sale in Nairobi, Kenya, Tuesday, July 16, 2026. (AP Photo/Andrew Kasuku)

CORALVILLE, Iowa & FARGO, N.D.--(BUSINESS WIRE)--Nov 4, 2026--

Danaher companies Integrated DNA Technologies (IDT), a global leader in genomics, and Aldevron, a premier manufacturing partner for DNA, RNA, and protein, are jointly launching new research-grade mRNA solutions designed to simplify base and prime editing workflows. The launch brings IDT’s gene editing expertise and Aldevron’s mRNA manufacturing together within Danaher’s connected ecosystem to address researchers’ increasingly specialized editing needs. Building on the companies’ recently launched wild type and Spy Fi™ high-fidelity S.p. Cas9 mRNA portfolio, the expanded offering gives researchers more mRNA options for applications requiring precise, programmable changes to genomic DNA without double-strand breaks.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20261104375435/en/

Meeting the shift to precision editing

As mRNA delivery and next-generation editing approaches advance, developers face increasingly specialized challenges: improving prime editing efficiency, narrowing pegRNA candidates for testing, and identifying base editors suited to their targets. Addressing these challenges takes complementary expertise across multiple workflow steps. Within Danaher’s connected science ecosystem, IDT and Aldevron bring CRISPR engineering, guide RNA design, and analysis expertise together with mRNA manufacturing to develop solutions around those needs. The resulting portfolio connects options for designing, screening, and optimizing base and prime editing workflows, helping researchers reduce complexity and maintain greater continuity as programs progress.

“The challenge is not simply to make more editing tools available—it is to bring the right capabilities together around the problems researchers need to solve,” said Christopher Vakulskas, senior director, applied science and molecular design at Integrated DNA Technologies. “Together with Aldevron, we’re addressing the realities of increasingly precise gene editing workflows by combining PE Ultra mRNA, optimized Alt-R pegRNAs, and enhanced design support that narrows testing to a practical set of candidates. Bringing these solutions together connects scientific expertise with practical workflow needs, helping researchers reduce complexity and move their programs forward with greater confidence.”

Tackling efficiency and targeting hurdles

Base editing enables a single, targeted nucleotide change, while prime editing supports precise substitutions, insertions, and deletions. Both do so without creating a double-strand break in the target DNA, an important consideration for researchers developing therapeutic applications. Prime editing, however, often struggles to reach efficient editing rates across targets and cell types. To address this, IDT and Aldevron developed PE Ultra mRNAs, which feature an engineered prime editor, and Alt‑R™ pegRNAs that contain a proprietary chemical modification pattern designed to enhance editing performance.

For base editing, researchers can face a different challenge such as protospacer‑adjacent motif (PAM) restrictions and variable editor activity, which can limit the number of targetable sites and make it difficult to identify the optimal editor for a given application. For greater flexibility, the companies now offer six stocked ABE8e-based mRNA variants spanning different PAM compatibilities and fidelity profiles, plus a screening kit for evaluating all six editors in parallel.

IDT has also released Alt-R CRISPR-Cas9 sgRNA XT to maximize editing performance across both base editing and Cas9-mediated workflows using mRNA. Together with the new IDT bioinformatics tool for pegRNA design, these solutions give researchers connected options for designing, screening, and optimizing precision-editing workflows.

Building a more connected gene editing portfolio

The launch builds on IDT and Aldevron’s September 2026 introduction of stocked research-grade S.p. Cas9 mRNA in wild type and Spy Fi™ high-fidelity formats. That initial offering provided mRNA-based options for gene editing workflows, which are particularly well-suited for in vivo applications, and established a path to scaled CGMP-manufactured versions for streamlined progression of therapeutic programs.

The new stocked base and prime editing mRNA products are orderable at scales of 20 ug to 1 mg, with larger scales available at Aldevron via custom order. For product details and data, visit www.IDTDNA.com/BasePrimeEditing.

Disclaimer: Integrated DNA Technologies (IDT) offers both Research Use Only (RUO) and In Vitro Diagnostic (IVD) products; Aldevron provides Research Grade (RG) and Current Good Manufacturing Practice (CGMP) products. RUO and RG products are intended for research use only and are not for use in diagnostic or therapeutic procedures. IVD and CGMP products are intended for diagnostic or clinical applications as specified in product documentation. References to clinical, diagnostic, or therapeutic impact pertain only to products with appropriate regulatory clearance. Purchasers are responsible for ensuring appropriate use and compliance with applicable regulations. For further information about product classifications and intended uses, please contact our regulatory affairs team or refer to product documentation.

About IDT

Building from a strong foundation of innovation, expertise, and reliability, Integrated DNA Technologies (IDT) has evolved from an oligo manufacturer to a leading genomics provider. We work shoulder-to-shoulder with scientific and global health partners to enable genomics breakthroughs at scale. Our vision of enabling researchers to rapidly move from the lab to life-changing advances reflects our ongoing commitment to a healthier, brighter future for all.

For more information about IDT, visit www.idtdna.com and follow the company on LinkedIn, X, YouTube, Instagram and Bluesky.

About Aldevron

Aldevron is a premier manufacturing partner, producing high-quality plasmid DNA, mRNA, proteins, and other key components for the development of vaccines, gene and cell therapies, immunotherapies and other treatments. As a part of the Danaher Corporation (NYSE: DHR) family of global science and technology companies, Aldevron supports thousands of scientists who are developing revolutionary, lifesaving treatments for millions of people. To learn more about how Aldevron is advancing biological science, visit www.aldevron.com/about-us.

About Danaher

Danaher is a leading global life sciences, diagnostics and biotechnology innovator committed to advancing the power of science and technology to improve human health. Through a connected ecosystem of industry-leading businesses, the Company works closely with customers to solve many of their most complex scientific challenges by accelerating discovery, development and delivery of life-changing therapies. Powered by the Danaher Business System and 60,000 associates worldwide, the Company strives for continuous improvement, operational excellence and Innovation at the Speed of Life. Explore more at www.danaher.com.

Integrated DNA Technologies (IDT) and Aldevron are jointly launching new research-grade mRNA solutions for base and prime editing. New offerings include PE Ultra mRNA, chemically modified Alt-R pegRNAs, pegRNA design support, six stocked ABE8e base editor mRNAs, and a parallel screening kit. These connected options help researchers design, screen, and optimize precision-editing workflows, reduce complexity, and identify solutions suited to their targets