Casava has partnered with Rivy to launch what both firms describe as Nigeria’s first dedicated green insurance products tailored to small and medium-sized enterprises (SMEs) investing in renewable energy.
The initiative introduces a suite of renewable energy insurance policies covering solar panels and inverters against theft, vandalism and accidental damage, alongside logistics and delivery protection for equipment in transit. The products will be embedded directly into Rivy’s financing and procurement platforms, allowing SMEs to access funding and insurance in a single transaction.
Closing a Critical Protection Gap
Nigeria continues to grapple with one of the world’s most acute electricity shortfalls. More than 85 million citizens lack reliable power, and SMEs—responsible for over 80% of national employment—are estimated to lose between 10% and 20% of annual revenues due to erratic grid supply and dependence on diesel generators.
The economic strain intensified following the 300% electricity tariff increase for Band A customers introduced in 2024 by the Nigerian Electricity Regulatory Commission. As a result, solar energy has become an increasingly viable alternative. Industry research indicates that SMEs adopting solar solutions can reduce monthly energy costs by as much as 37% and boost earnings by up to 27%.
Nigeria’s off-grid solar market is projected to reach $9.2 billion by 2030, while installed solar capacity has expanded from 11 MW in 2015 to 144 MW in 2025, according to the International Renewable Energy Agency (IRENA).
Despite this growth, insurance coverage has remained a major obstacle. Solar installations typically require upfront investments ranging from ₦500,000 to ₦5 million—assets that have largely been uninsured through conventional channels. Theft, accidental damage and transit losses have exposed business owners to significant financial risks, slowing broader adoption.
Building a New Green Insurance Category
Under the partnership, Casava will provide two core insurance products integrated into Rivy’s clean energy financing workflow:
- Solar Asset Protection: Coverage for solar panels and inverters against theft, vandalism and accidental damage from installation onward.
- Logistics and Delivery Insurance: Protection for solar equipment during transit and delivery, addressing a long-overlooked vulnerability in Nigeria’s solar value chain.
The policies are delivered through Casava’s digital-first model, enabling mobile enrollment, instant policy issuance and streamlined claims processing.
Bode Pedro, Founder of Casava, described the move as a structural shift in Nigeria’s climate transition.
“Insurance must be a foundational pillar of Africa’s climate transition,” he said. “Financing and technology alone are not enough. Clean energy investments need protection to be sustainable.”
Pedro added that Nigeria’s Insurance Industry Reform Act—expected to significantly increase capital requirements and expand mandatory coverage categories by 2026—creates new opportunities for digital insurers to scale. He noted that the broader insurance market is projected to grow from ₦2.2 trillion to ₦8 trillion by 2030.
Dami Olawoye, CEO of Rivy, said the company has onboarded more than 500 solar installers and vendors since pivoting to clean energy financing.
“Through this partnership, every SME financing solar equipment through Rivy can now be assured that their assets are protected—from warehouse to final repayment,” Olawoye said.
Advancing Climate and ESG Objectives
The collaboration positions both firms at the intersection of insurance innovation and climate finance. The International Energy Agency projects global renewable capacity will double between 2025 and 2030, while the World Economic Forum has called on insurers to increase underwriting for low-carbon projects.
By embedding insurance into the renewable energy value chain, Casava and Rivy aim to:
- Reduce investment risk and accelerate SME solar adoption
- Protect billions of naira worth of renewable energy assets
- Support Nigeria’s Nationally Determined Contributions under the Paris Agreement, targeting a 47% reduction in greenhouse gas emissions by 2030
- Pioneer parametric and data-driven insurance models leveraging IoT monitoring systems
- Develop scalable green insurance models for broader African markets
Insurance as Climate Infrastructure
Looking ahead, both companies say they intend to expand coverage to battery storage systems and energy-efficient equipment. Future offerings may include parametric insurance products that trigger automatic payouts based on measurable weather events, performance-guarantee policies tied to energy output, and integration with carbon finance mechanisms.
As Nigeria reforms its insurance sector and renewable energy adoption accelerates, the Casava–Rivy partnership signals a growing recognition that risk protection—not just financing—will be central to scaling clean energy across Africa.
