Daystar Power, Sterling Bank Launch Hybrid Financing Model to Accelerate Clean Energy Adoption in Nigeria

Daystar Power, part of the Shell Group, and Sterling Bank have Launched a new hybrid financing model aimed at making renewable energy more accessible to businesses across Nigeria by combining flexible financing with long-term clean power solutions.

The initiative, announced under a renewed Memorandum of Understanding (MoU) between the two organisations, is designed to help commercial and industrial customers overcome the high upfront costs that have traditionally slowed the adoption of solar energy systems.

Under the arrangement, Sterling Bank will provide tailored financing facilities for eligible businesses, while Daystar Power will offer long-term power purchase agreements (PPAs) that enable customers to access reliable and cost-effective solar-hybrid energy without significant initial capital expenditure.

The partners said the model addresses liquidity and financing tenure challenges that have constrained investment in renewable energy projects, creating a pathway for more businesses to transition away from expensive diesel generation.

Sterling Bank has established a dedicated credit facility to support the programme, enabling customers to finance installation costs while benefiting from fixed-cost solar tariffs that can deliver immediate operational savings.

Daystar Power Chief Executive Officer, Yischai Beinisch, said the collaboration combines the strengths of both organisations to expand access to dependable and affordable renewable energy for Nigeria’s industrial sector.

“Together, we will deliver cleaner, more reliable, and affordable energy to power industry in Nigeria,” he said.

Sterling Bank’s Group Executive for Corporate and Investment Banking, Faseemo, noted that access to affordable electricity remains one of the biggest constraints on business growth in Nigeria and said the financing structure is intended to remove that barrier by eliminating the need for substantial upfront investment.

According to the bank, the partnership will enable companies to transition more easily to cleaner energy while reducing operating costs and improving energy reliability.

The collaboration also leverages Daystar Power’s technical expertise and the backing of the Shell Group alongside Sterling Bank’s financial capabilities, offering businesses access to internationally recognised engineering standards and long-term project support.

The initiative is expected to support broader efforts to expand renewable energy deployment in Nigeria’s commercial and industrial sectors while helping companies lower carbon emissions and strengthen energy resilience.