Ncondezi will put around US$1.5 million into the sector through a joint venture, funded with $2.48 million placing and subscription in London.

The company said the JV with GridX was complementary to its eponymous coal project.

"The company … believes the move into the [commercial and industrial] solar and battery storage sector represents a significant opportunity for the company to complement its existing large scale baseload power project and access near-term low-risk annuity income streams which the company believes has significant growth potential," chairman Michael Howarth said.

"Falling solar panel and battery costs are setting the foundation for a tide of disruptive technology in the African energy markets, allowing African countries to leapfrog to the next generation of sustainable energy supply."

The $1.5 million spend is split between the $390,000 JV payment to GridX and the expected $1.1 million share of the first project.

Ncondezi said GridX's projects had average IRRs of 10-15%.

While the first project was not named in the announcement, the company said GridX had a few to choose from.

"Potential pipeline projects include luxury resorts, manufacturing facilities, port facilities and agri-businesses, with flexible design solutions for either off grid or on grid requirements," Ncondezi said.

"The advanced stage projects have a potential 1.4MWp of solar and 8.9MWh of battery storage, and are concentrated in Mozambique, Djibouti and Zambia."

Ncondezi's share price was down 7.95% on the news to 6.95p (US9.1c).