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Daystar Power and Sterling Bank have expanded their partnership with the introduction of a new financing model aimed at helping Nigerian businesses switch to cleaner and more affordable energy solutions without the burden of heavy upfront costs.
The two companies announced the renewed collaboration over the weekend, saying the initiative is designed to address one of the biggest obstacles facing businesses seeking to adopt renewable energy — access to long-term financing.
Under the renewed Memorandum of Understanding (MoU), Sterling Bank will provide tailored financing support to commercial and industrial customers, while Daystar Power will offer long-term Power Purchase Agreements (PPAs) that enable businesses to access solar-hybrid energy systems with minimal initial capital outlay.
The partners said the arrangement combines financing and energy infrastructure in a way that allows businesses to begin enjoying cost savings from cleaner energy solutions almost immediately.
According to the companies, the initiative is expected to accelerate the adoption of renewable energy among Nigerian businesses, many of which continue to rely heavily on expensive diesel and petrol generators due to unreliable grid electricity.
To support the programme, Sterling Bank has created a dedicated credit facility that will help eligible commercial and industrial customers finance the upfront costs associated with transitioning to solar energy.
The companies explained that the funding support, alongside Daystar Power’s solar-hybrid systems, will enable businesses to replace costly self-generated power with a more predictable and lower-cost energy source.
Chief Executive Officer of Daystar Power, Yischai Beinisch, described the partnership as a practical solution to the financing challenges that have slowed the growth of renewable energy adoption in Nigeria.
“This partnership combines the strengths of Daystar Power and Sterling Bank to make renewable energy accessible to industrial customers,” Beinisch said.
“Together, we will deliver cleaner, more reliable, and affordable energy to power industry in Nigeria.”
He noted that access to affordable financing remains a major factor influencing investment decisions by businesses seeking alternative power sources.
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Also speaking, Group Executive, Corporate and Investment Banking at Sterling Bank, Dele Faseemo, said the initiative would help businesses overcome one of their most pressing operational challenges.
“At Sterling Bank, we recognise that access to affordable and reliable energy remains one of the biggest barriers to business growth in Nigeria,” Faseemo said.
“Through this partnership with Daystar Power, 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.”
Industry experts have repeatedly identified financing constraints, liquidity shortages and limited access to long-term funding as key factors slowing investment in renewable energy projects across Nigeria.
The partners said the new arrangement directly addresses these challenges by combining financial support with proven energy infrastructure solutions.
They added that the collaboration would allow Nigerian businesses to benefit from global engineering standards and project expertise while enjoying the backing of a leading local financial institution.
The companies believe the model will not only help businesses reduce energy costs but also improve operational efficiency and support environmental sustainability goals through lower carbon emissions.
Nigeria’s energy sector continues to face significant power supply challenges, forcing many businesses to spend large portions of their operating budgets on alternative power generation. Rising fuel prices and increasing operational costs have further intensified the search for more sustainable and cost-effective energy options.
Daystar Power, a member of the Shell Group, is one of West Africa’s leading providers of hybrid solar power solutions for businesses. The company focuses on helping organisations reduce energy costs, improve energy reliability and lower their carbon footprint.
Sterling Bank, a subsidiary of Sterling Financial Holdings Company, is a full-service commercial bank with operations across Nigeria. The bank has increasingly positioned itself as a key financier of sustainable development and renewable energy projects.
The renewed partnership is expected to provide more businesses with access to cleaner energy while supporting Nigeria’s broader efforts to increase renewable energy adoption and reduce dependence on fossil fuel-powered electricity generation.
