Chinese Solar Tech Firm LOBO Secures KSh154M Deal for Kenya’s Pioneering Green Township Development

LOBO Technologies Ltd (NASDAQ: LOBO), a Chinese developer and manufacturer of electric mobility and smart energy solutions, has announced a significant breakthrough in Kenya’s renewable energy sector with a bulk purchase order worth approximately KSh154.3 million (US$1.194 million) from Terrian Town Limited, a Kenyan real estate company pioneering sustainable urban development.

The deal, announced on October 29, 2025, marks a pivotal moment for Kenya’s growing renewable energy infrastructure and represents one of the largest private-sector investments in residential solar power storage systems in the East African nation. The contract involves the supply and installation of advanced photovoltaic power storage systems designed to transform how residential communities access and consume electricity.

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Advanced Solar Technology for Sustainable Living

The solar power storage systems at the heart of this deal comprise 10kW photovoltaic arrays paired with 20kWh lithium iron phosphate (LiFePO₄) batteries, a technology increasingly recognized as the gold standard for residential solar energy storage. These systems are specifically designed to supply up to 80 per cent of the electricity needs of residential units, significantly reducing dependence on grid power and lowering energy costs for homeowners.

The order covers 80 villas at an estimated cost of KSh1.8 million (US$13,900) per household, as well as portions of the business units within the development. This pricing makes the technology accessible to middle-class Kenyan homeowners while offering substantial long-term savings through reduced electricity bills and increased energy independence.

LiFePO₄ batteries represent a significant advancement over traditional lead-acid batteries commonly used in solar installations. They offer superior energy density, longer lifespans of 3,000 to 10,000 charge cycles, enhanced safety features including thermal stability, and minimal maintenance requirements. These characteristics make them particularly well-suited for Kenya’s climate and the demands of daily residential use.

Terrian Town: Kenya’s Flagship Green Model Community

Terrian Town Limited owns 8.62 hectares of prime land in Kajiado County, a rapidly developing region adjacent to Kenya’s capital city, Nairobi. The company’s management has ambitious plans to establish a green-energy, eco-friendly township intended to serve as Kenya’s flagship green model community—a showcase for sustainable urban development that could set the template for future real estate projects across East Africa.

Kajiado County has emerged as one of Kenya’s fastest-growing regions, benefiting from its proximity to Nairobi and improved infrastructure. Towns like Kitengela, Ngong, and Ongata Rongai within the county have experienced rapid real estate expansion, with many professionals working in Nairobi choosing to live in Kajiado due to more affordable land and housing options. Terrian Town’s project represents the next evolution in this growth—combining residential development with cutting-edge environmental sustainability.

The vision for Terrian Town extends beyond simply installing solar panels on rooftops. The development aims to create an integrated eco-system where renewable energy, water conservation, waste management, and green building practices come together to minimize environmental impact while maximizing quality of life for residents. The substantial investment in solar power storage systems represents the cornerstone of this vision, enabling the community to achieve near energy independence from day one.

LOBO’s Strategic Expansion into African Markets

LOBO Technologies has positioned itself as a key player in Africa’s burgeoning renewable energy sector. Based in Wuxi, China, the company manufactures a diverse range of products including e-bicycles, electric motorcycles, e-tricycles, electric off-road vehicles such as golf carts and mobility scooters, solar-powered vehicles, and smart energy solutions.

“LOBO is eager to leverage its technology and supply-chain strengths to help Terrian Town achieve this vision,” the company stated in its announcement. This partnership underscores LOBO’s continued expansion into the African renewable energy sector and reflects the company’s growing commitment to sustainable infrastructure solutions worldwide.

The Terrian Town contract follows LOBO’s recent success at the 138th Canton Fair, where the company secured over US$5 million in confirmed orders, representing a 40% increase compared to the previous year. These achievements demonstrate the growing global demand for LOBO’s electric mobility and renewable energy products.

For LOBO, Kenya represents an strategically important market. The country has one of the most advanced renewable energy sectors in Africa, with supportive government policies, a rapidly growing middle class, and increasing awareness of environmental sustainability. By establishing a strong foothold through high-profile projects like Terrian Town, LOBO positions itself to capture additional market share as Kenya pursues its ambitious renewable energy targets.

Kenya’s Renewable Energy Revolution

The LOBO-Terrian Town partnership occurs against the backdrop of Kenya’s remarkable progress in renewable energy adoption. The country has set ambitious targets to generate 100% of its electricity from clean energy sources by 2030, and current performance suggests these goals are within reach. As of 2024, renewable sources account for approximately 92% of Kenya’s electricity mix, making it a continental leader in clean energy transition.

Kenya’s renewable energy portfolio is dominated by geothermal power (43%), followed by hydropower (28%), wind energy (14%), and solar power (4%). However, solar energy represents one of the fastest-growing segments, with installed capacity increasing by 20% in 2024 to reach around 340 MW. This growth trajectory is expected to continue as costs decline and technology improves.

The government has implemented supportive policies to accelerate renewable energy adoption. The Energy Act of 2019 provides a comprehensive legal framework for renewable energy development, while tax incentives and removal of import duties on solar products have made the technology more affordable. Feed-in tariffs introduced in 2008 and expanded in subsequent years have created a stable environment for private sector investment.

Kenya also boasts one of the highest rates of household solar ownership in the world. Millions of rural Kenyans use solar photovoltaic systems for lighting, phone charging, and small appliances, driven by relatively high grid connection costs and abundant sunshine. The country receives an average of 4 to 6 kWh of solar energy per square meter daily, making it ideal for solar power generation.

Off-grid solar solutions have been particularly transformative in rural areas. Companies offering pay-as-you-go solar home systems have brought electricity to millions who previously lacked access, enabling children to study at night, businesses to operate longer hours, and healthcare facilities to refrigerate medicines. The Terrian Town project represents the next chapter in this solar revolution—bringing utility-scale solar storage to middle-class urban and peri-urban communities.

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Technical Innovation and Energy Independence

The photovoltaic systems supplied by LOBO will be installed across Terrian Town’s upcoming residential and commercial developments, boosting energy efficiency and dramatically reducing dependence on the national grid. Each 10kW solar array can generate substantial electricity during peak sunlight hours, with excess energy stored in the 20kWh battery systems for use during evenings and periods of low solar generation.

This configuration offers several critical advantages. First, it provides energy security—homeowners will continue to have power even during grid outages, which occasionally occur in Kenya. Second, it reduces electricity costs—solar-generated power is essentially free after the initial investment, offering significant savings over the 20-25 year lifespan of the solar panels. Third, it supports environmental sustainability by displacing fossil fuel-generated electricity.

LOBO’s solar power storage systems combine high-efficiency photovoltaic technology with intelligent energy management to deliver reliable, scalable, and cost-effective clean energy solutions. The systems include sophisticated monitoring capabilities that allow homeowners to track energy generation, consumption, and battery status in real-time through mobile applications. This data-driven approach enables residents to optimize their energy usage and maximize the return on their solar investment.

The intelligent energy management systems can also be programmed to prioritize certain loads during periods of limited battery capacity, ensuring that essential appliances like refrigerators and security systems remain powered even if solar generation has been limited due to cloudy weather. This level of control and reliability represents a significant advancement over earlier generations of residential solar systems.

Economic and Environmental Impact

The economic implications of the LOBO-Terrian Town partnership extend well beyond the immediate KSh154.3 million contract value. The project will create employment opportunities during the installation phase, requiring technicians, engineers, and support staff. Once operational, the solar systems will generate ongoing savings for homeowners, freeing up household income for other investments or consumption.

From an environmental perspective, the 80 residential solar installations will displace a substantial amount of grid electricity, which in Kenya still includes a small percentage of fossil fuel-generated power. Even accounting for Kenya’s already-clean electricity mix, the project will eliminate several hundred tons of carbon dioxide emissions annually. Over the 25-year expected lifespan of the solar systems, the cumulative environmental benefit will be substantial.

The project also demonstrates the viability of integrated renewable energy solutions in residential real estate development. If successful, Terrian Town could inspire dozens or hundreds of similar projects across Kenya and neighboring countries. This multiplier effect could accelerate the deployment of residential solar storage systems throughout East Africa, contributing to regional climate goals and energy security.

Real estate developers are increasingly recognizing that sustainability features like solar power systems can be powerful marketing tools. Environmentally conscious buyers are often willing to pay a premium for homes with lower operating costs and reduced environmental impact. The Terrian Town model—where solar infrastructure is built in from the beginning rather than retrofitted—offers economies of scale that make the technology more affordable while ensuring optimal system design and integration.

Challenges and Opportunities Ahead

While the LOBO-Terrian Town partnership represents exciting progress, several challenges must be navigated for the project to achieve its full potential. Installation and commissioning of 80 separate solar-battery systems will require careful project management, skilled technicians, and quality control to ensure all systems perform as specified. LOBO will need to establish reliable supply chains for components and technical support infrastructure in Kenya.

Maintenance and long-term service represent another consideration. While LiFePO₄ batteries require minimal maintenance, solar panels need periodic cleaning and occasional repairs. LOBO and Terrian Town will need to establish systems for ongoing support to ensure homeowners can fully benefit from their solar investments throughout the systems’ lifespans.

Financing mechanisms will also be important for future projects. While the Terrian Town development includes solar systems in the initial package, future residential solar deployments may require innovative financing options to make the technology accessible to more Kenyans. Pay-as-you-save models, where homeowners finance solar systems through the electricity cost savings they generate, could significantly expand the market.

Regulatory considerations may also come into play as residential solar-battery systems become more common. Issues such as interconnection standards for homes that want to remain grid-connected, safety regulations for battery installations, and policies around net metering (where homes can sell excess electricity back to the grid) will need to be addressed to fully unlock the potential of distributed solar generation.

The Broader Context of China-Kenya Energy Cooperation

The LOBO-Terrian Town deal reflects broader patterns of Chinese investment and technology transfer in Kenya’s infrastructure and energy sectors. Chinese companies have been involved in numerous high-profile projects in Kenya, including roads, railways, and power generation facilities. The renewable energy sector has been a particular focus, with Chinese firms providing equipment and expertise for solar, wind, and geothermal projects.

This cooperation has been mutually beneficial. Kenya gains access to affordable technology and financing for infrastructure development, while Chinese companies expand their international markets and gain experience in African operating environments. The renewable energy focus aligns with both countries’ climate commitments and economic development objectives.

However, such partnerships also raise questions about technology transfer, local capacity building, and long-term sustainability. Ensuring that Kenyan workers and companies develop the skills and capabilities to install, maintain, and eventually manufacture renewable energy systems domestically will be important for the long-term success of the country’s energy transition.

Looking Ahead: The Future of Residential Solar in Kenya

The LOBO-Terrian Town partnership represents more than just a business transaction—it symbolizes Kenya’s transformation toward a cleaner, more sustainable energy future. As the country works toward its goal of 100% renewable electricity by 2030, projects like Terrian Town will play a crucial role in demonstrating that sustainable development is not just environmentally responsible but also economically viable and socially desirable.

The success of this project could catalyze a wave of similar developments across Kenya and East Africa. Real estate developers are watching closely to see whether the green township model resonates with buyers and delivers on its promises of lower operating costs and environmental sustainability. If Terrian Town succeeds in becoming Kenya’s flagship green model community, it could reshape expectations for residential development throughout the region.

For homeowners, the integration of solar power storage systems offers compelling benefits: lower electricity bills, increased energy security, reduced environmental impact, and potential increases in property values. As the technology becomes more established and costs continue to decline, solar-battery systems may transition from a luxury feature to a standard expectation in new residential developments.

The broader implications for Kenya’s energy sector are equally significant. Widespread adoption of residential solar-battery systems would reduce peak demand on the national grid, improve overall system reliability, and accelerate the country’s transition to renewable energy. The distributed nature of residential solar also enhances energy security by reducing dependence on centralized generation and transmission infrastructure.

Conclusion: A Milestone for Sustainable Development

LOBO Technologies’ KSh154.3 million deal with Terrian Town Limited represents a significant milestone in Kenya’s journey toward sustainable urban development and energy independence. By providing advanced photovoltaic power storage systems to 80 residential villas in Kajiado County, the partnership demonstrates the practical viability of integrating renewable energy into mainstream residential real estate.

The project exemplifies the kind of private-sector innovation and investment that will be essential for Kenya to achieve its ambitious renewable energy goals. Rather than waiting for government mandates or incentives, Terrian Town has proactively embraced sustainability as a core value proposition, while LOBO has committed substantial resources to support this vision through technology transfer and implementation expertise.

As the systems are installed and commissioned over the coming months, all eyes will be on Terrian Town to see whether it can deliver on its promise to become Kenya’s flagship green model community. Success would validate the business case for sustainable real estate development and potentially trigger a transformation in how residential communities are designed and powered throughout East Africa.

For Kenya, the implications extend far beyond one development project. The LOBO-Terrian Town partnership demonstrates that the country’s renewable energy revolution is entering a new phase—moving beyond large-scale generation projects to embrace distributed, residential-scale solutions that put clean energy directly in the hands of ordinary citizens. This democratization of energy production may ultimately prove as transformative as the country’s achievements in geothermal, wind, and utility-scale solar power.

The firm continues to pursue strategic collaborations to broaden its renewable and smart hardware offerings in emerging markets, positioning itself at the forefront of Africa’s renewable energy transition. As climate change concerns intensify and energy costs remain volatile, the demand for reliable, affordable, and sustainable energy solutions will only grow. LOBO’s investment in projects like Terrian Town positions the company to be a key beneficiary of and contributor to this global energy transformation.

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By: Montel Kamau

Serrari Financial Analyst

4th November, 2025