Daystar Power Group

Daystar Power Group provides solar hybrid power solutions across Africa, helping businesses reduce energy costs and enhance sustainability. Their innovative offerings include Power as a Service and Solar as a Service models designed for uninterrupted power supply. Founded in 2017 in Nigeria, Daystar Power Group specializes in solar hybrid power systems, primarily targeting commercial and industrial clients. The company has executed 8 deals to date, with the most recent funding round being a Series B on September 28, 2022, where they successfully raised EUR 31.

30 mn led by IFU alongside Morgan Stanley Investment Management, Proparco, and STOA Infra and Energy. The CEO, Jasper Von Hardenberg, guides the firm in its mission to deliver cost-effective energy solutions. Daystar Power specializes in providing solar hybrid power systems tailored for businesses across several African countries. Their core offerings include Power as a Service (PaaS) and Solar as a Service (SaaS) models, where clients enter into long-term contracts to receive uninterrupted power supply without any upfront costs.

These systems utilize a combination of solar energy and battery storage to ensure reliability, achieving an average uptime of 99%. Daystar's services are designed to replace or supplement existing power sources, such as diesel generators or grid electricity, thereby reducing operational costs by up to 30%. Their client base spans various sectors, including banking, retail, agriculture, and logistics, and they operate in key markets across West Africa, including Nigeria, Ghana, and Senegal. Daystar Power's revenue model is centered around subscription-based services, where clients pay a monthly fee for their power consumption through both the PaaS and SaaS offerings.

Under these models, businesses benefit from a reliable and cost-effective energy solution while avoiding high initial capital expenditures typically associated with traditional energy systems. The firm establishes long-term contracts, ensuring a steady revenue stream through consistent power delivery. Pricing structures are designed to be competitive, positioning their solar power solutions as significantly cheaper alternatives to conventional power systems. This business-to-business transaction framework allows Daystar to cater to a diverse clientele, including large industrial players who require substantial energy reliability and sustainability.

Daystar Power's future growth strategy includes expanding its presence in West Africa, particularly in markets such as Ghana and Senegal, by the end of 2023. The firm aims to introduce new solar solutions tailored to local business needs, leveraging the recent Series B funding of EUR 31. 30 mn to enhance their product development and market reach. This funding will support their initiatives to provide more accessible and sustainable energy options for commercial entities across the region.

Additionally, they will utilize the recent acquisition of Daybreak Power Solutions Limited by Shell Oil Company to enhance their operational capabilities and deliver further carbon emission reductions to their clients.