Battery rentals spread from South Africa to Nigeria as energy costs rise

Across Africa, consumers are paying for access instead of ownership. They buy mobile data instead of fixed internet contracts, stream films rather than purchase DVDs, and use mobile money without opening bank accounts. Electricity is beginning to follow the same pattern.

Instead of spending heavily on generators, inverters or rooftop solar, more South Africans are renting batteries that keep homes and businesses running during power cuts. Companies such as bPOWERd, a battery rental startup, are building around reliable electricity being sold as a subscription rather than as expensive equipment.

As electricity prices rise, grids remain unreliable, and household budgets tighten, paying for power as a service is becoming more attractive than owning the hardware. South Africa, where years of load shedding pushed households to seek alternatives, has become an early market for the model. Nigeria, where many households and businesses still depend on petrol and diesel generators, is quickly becoming proof that the model can travel across Africa.

“What I believed, and what the market has confirmed, is that the demand for reliable power was always there,” Thandekile Madikane, Head of Country Operations for South Africa at bPOWERd, told TechCabal. “What was missing was a way to access it without the enormous barrier of ownership. When you rent, you pay for what you use, when you use it. No debt. No installation. No maintenance headaches.”

According to Madikane, the approach marks a shift in how backup power has traditionally been sold. South Africans have long bought generators, inverters, and solar systems outright, often spending between R8,000 ($488) and R150,000 ($9,154). For many township households and small businesses, those upfront costs remain out of reach even as electricity becomes essential for earning an income.

He said many customers now value flexibility over ownership. “Some of our customers could buy. They choose not to,” Madikane stated. “The rental model doesn’t just lower the barrier to entry. It preserves financial flexibility. Ownership is not always the smartest move. Access, flexibility, and predictable cost matter more than the asset on your wall.”

The model reflects changes already seen elsewhere in African technology. In March 2007, Kenya’s M-Pesa expanded access to financial services without requiring traditional bank accounts. In East Africa, companies such as M-KOPA made home solar affordable by spreading payments over time. Battery-swapping networks for electric motorcycles have also shown that customers are willing to pay for energy without owning the battery.

Madikane believes electricity is moving in the same direction. “Energy is becoming exactly what mobile data, prepaid airtime and streaming became,” he said. “You don’t buy a cinema. You buy the experience of watching a film tonight. That is the direction energy is moving.”

Although load shedding has eased, unreliable electricity remains common in many South African communities, particularly townships where unplanned outages continue to interrupt households and informal businesses. For many entrepreneurs, every blackout means lost income.

He added that bPOWERd’s customers include barbers, salon owners, food vendors, and spaza shop operators whose businesses stop operating when the power goes out. Some customers have also created new income streams by charging neighbours’ phones or replacing diesel-powered equipment with battery-powered alternatives. “The product is not a nice-to-have,” he said. “It has become genuine infrastructure for how people in the township live, earn, and care for their families.”

In May, bPOWERd expanded into Lagos, launching battery rental hubs offering portable solar-charged batteries at daily rates designed to compete with petrol generators. According to the company, the rollout reached 60% of its six-month customer target within seven weeks.

“The lesson from Nigeria is the same one we learned in South Africa’s townships,” Madikane said. “The demand was always there. People were not resistant to clean energy. They were locked out of it by cost. Remove that lock, and they move fast.”

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