Inspired Evolution Exits Stake In Commercial Energy SA as SolarAfrica Acquires C&I Solar And BESS Portfolio

Inspired Evolution has successfully exited its Evolution II Fund’s controlling stake in Commercial Energy SA (CESA), marking another important milestone for the fund’s investment journey in Africa’s renewable energy sector. CESA is a South African platform focused on owning and operating commercial and industrial (C&I) solar photovoltaic (PV) and battery energy storage system (BESS) assets. The company was jointly owned by the Evolution II Fund and SolarAfrica Energy.

The transaction represents a successful exit for the Evolution II Fund, which was launched in 2017 as a 10-year closed-ended fund with capital commitments of around USD 216 million. The fund is currently in the advanced stage of disposing of its remaining portfolio investments. Its strategy has focused on two main areas. The first is development and project financing for clean and sustainable energy infrastructure. The second is growth equity investments in companies involved in energy and resource efficiency, along with related value chains that support these industries.

Since its launch, the Evolution II Fund has made nine investments across Sub-Saharan Africa. With this latest transaction, the fund has completed four exits so far. In total, Inspired Evolution has now achieved twenty disposals across its Evolution funds, highlighting the firm’s active role in developing and scaling renewable energy businesses across the region.

CESA was originally created to acquire and operate distributed renewable energy systems throughout South Africa. These systems were developed and managed by SolarAfrica Energy and primarily serve commercial and industrial customers through long-term contractual agreements. The platform’s portfolio includes both rooftop and ground-mounted solar PV installations connected to the grid. In addition, the portfolio also includes battery energy storage systems designed to improve energy reliability and efficiency for customers.

Over the years, CESA has built a renewable energy portfolio with approximately 90 megawatts of solar PV and BESS capacity. The installations vary in size, ranging from smaller rooftop systems of around 250 to 500 kilowatt-peak to larger multi-megawatt projects that require more complex engineering and deployment.

The company’s customer base is diversified and includes several well-known commercial and industrial organizations. Among them are major retailers, shopping centre portfolios, and large industrial companies such as CTM, Ford Motor Company, Nestlé, and Tiger Brands.

As part of the exit agreement, SolarAfrica Energy has acquired the Evolution II Fund’s shareholding in CESA. The fund initially invested in the platform in January 2019 and later provided additional funding through several investment tranches to support the company’s growth and project expansion over a seven-year period.

Steven Faure, Partner at Inspired Evolution, said the investment in CESA has helped deliver reliable, affordable, and clean energy solutions for commercial and industrial customers across South Africa. He noted that the project demonstrates how distributed renewable energy can strengthen energy security while also supporting sustainability goals. Faure also thanked SolarAfrica for its partnership and acknowledged the advisory support provided by RMB Corporate Finance and Cliffe Dekker Hofmeyr during the transaction process.

Charl Alheit, Chief Investment Officer at SolarAfrica, said the company’s goal is to provide cheaper and greener electricity to more businesses in South Africa. He added that the CESA portfolio highlights the strong demand for clean energy solutions among commercial and industrial customers and reflects investor confidence in the long-term future of renewable energy in the region.