East Africa’s SolarNow Enters Liquidation Amid Sector Struggles

SolarNow Services Ltd has entered voluntary liquidation. A notice published in the Kenya Gazette confirms that the company’s shareholders passed a resolution to liquidate.

Founded in 2011 and headquartered in the Netherlands, SolarNow began operations in Uganda, offering pay-as-you-go solar systems designed for off-grid households. Its model, which allowed customers to pay for solar kits in installments, gained early traction across the region. The company expanded to Kenya. By 2017, it had raised nearly $30 million in equity and debt financing from backers including Acumen, Novastar Ventures, Shell Ventures, SunFunder, and UK Aid.

At its peak, SolarNow employed 900 people and operated 65 branches across Kenya and Uganda, delivering over 37,000 systems. Its approach blended franchise distribution, in-house installation teams, and consumer credit, a strategy that positioned it as a model for sustainable energy startups in Africa.

However, a convergence of financial pressures has hit the off-grid solar market hard. Currency depreciation, surging inflation, and supply chain costs have squeezed both margins and repayment rates. SolarNow’s reliance on consumer financing left it exposed to rising default risk as household incomes stagnated.

Funding challenges have further complicated survival. Global investment in off-grid solar dropped nearly 30% in 2024, drying up capital just as firms faced mounting operational costs. For SolarNow’s Kenyan unit, liquidation appears to have been the only option.