Solar charging startup secures $5.5m equity investment

From the newsletter

Charge, a South African EV charging startup has secured R100 million ($5.5 million) in funding from the Development Bank of Southern Africa (DBSA). The company, formerly known as Zero Carbon Charge, is planning to build a network of off-grid EV charging stations powered by solar energy and supported by battery storage along South Africa’s highways.

• There is a major gap for off-grid stations in Africa, where most countries are struggling to connect their huge populations to the grid. But the decline in global prices of solar panels and lithium-ion batteries is making it cheaper to set up off-grid stations.  

• Building solar-powered charging stations in Africa is not easy. The cost is high, and as demonstrated by Charge’s experience in South Africa, developers have to navigate complex regulatory and political hurdles from authorities to get land leases. 

More details

• Charge said in a statement that the funding will allow it to set up a charging station every 150 km along the country’s national roads to reduce range anxiety for EV drivers. Charge unveiled its first off-grid charging station in the country at the end of 2024.

• The station has an on-site solar farm consisting of 480 bifacial solar panels providing up to 280 kW of electricity to the facility, which consists of a charging area and farm stall. It has a 546 kWh liquid-cooled battery to provide extra power when demand exceeds the solar farm’s capacity or during the evenings and prolonged periods without sufficient solar production.

• Charge plans to build 120 stations by 2026. The company had initially planned to complete the construction of the stations in 2025 but met with regulatory challenges, especially from local authorities. The DBSA funding is expected to fast-track the completion of the off-grid chargers.

• The South African company is the latest charging firm to raise money from investors for expansion. Last week, Kenyan motorcycle startup ARC Ride raised $5 million from the British International Investment (BII) to scale its network of swapping stations. Ghana-based startup Kofa in April raised $8.1 million to expand battery swapping infrastructure in Ghana and Kenya, while South African charging firm Zimi Charge also received a grant of $0.3 million.

• Increased funding will be key for the growth of off-grid charging stations in Africa, where they are scarce despite the abundance of solar energy. The market is still small, a big reason why many investors have been reluctant to put in their money. Investment is currently concentrated in grid-tied charging stations, which are mainly located in major cities and towns where the presence of EVs is higher.

• Off-grid charging stations will be especially pivotal for accelerating the uptake of electric motorcycles in rural areas in Africa, most of which lack access to electricity. Demand for electric motorcycles, which are mainly used to transport individuals, is growing faster than electric cars as they are economical. 

Our take

• The challenges that Charge is facing when it comes to land access in South Africa show that governments must simplify land lease processes and regulatory approvals for solar-powered charging infrastructure. Public-private partnerships can help accelerate deployment and attract more investment.

• More development banks and impact investors should step in to finance off-grid EV infrastructure, particularly for electric motorcycles, which are growing rapidly in rural areas. Tax incentives and subsidies can also encourage private sector involvement.

• Companies should focus on improving battery storage efficiency and integrating AI-driven demand prediction for better energy management. Leveraging cheaper and advanced solar panels and lithium-ion alternatives (like sodium-ion batteries) can lower costs.