The problem
For a Lagos factory or an Accra cold store, grid power is a rumor — businesses run on diesel generators that cost a fortune to fuel and maintain, vibrate through the working day, and make a mockery of any climate pledge. Going solar would fix it, but few firms can fund the panels upfront or operate them reliably.
How it works
Founded in 2017, Daystar Power installs and operates solar arrays with battery storage on commercial rooftops across West Africa. Under its Solar-as-a-Service and Power-as-a-Service offerings, Daystar owns and maintains the system while the client simply pays for clean, reliable power each month — cutting overall power costs for the region’s leading industrial and commercial companies. Demand was booming: installed capacity grew 135% in 2022 alone.
Pain points
Unpredictable diesel prices, generator breakdowns at the worst moments, and the capex-plus-expertise wall blocking direct solar adoption.
Business model
Recurring monthly fees under long-term commercial and industrial power contracts; since the Shell deal, expansion is funded from a far stronger balance sheet with a mandate to go pan-African.
Challenges
Each contract is a multi-year credit bet on one business; storage-heavy systems tie up capital per megawatt; and every new country brings its own tariffs, duties, and grid dynamics. Shell ownership also ties Daystar’s brand to an oil major’s climate politics.
Funding
- Raised: pre-acquisition venture rounds undisclosed in inspected sources; the Shell purchase price was not revealed.
- Valuation: MISSING.
Latest — December 2022
Daystar Power completed its acquisition by Shell after regulatory approval: it now operates as a wholly owned subsidiary under its existing brand within Shell’s Renewables & Energy Solutions business, with the co-founders and management team staying on. The mandate is continental expansion with a 400MW installed-capacity target by 2025 — Shell’s first power-firm acquisition in Africa.