- Adopt part payment as strategy to woo customers
- Households, offices, schools, Churches, hospitals embrace solar
Players in Nigeria’s solar energy sector are experiencing rapid growth as Nigerians opt for alternative energy sources.
According to findings by THE POINT, the rising cost of premium motor spirit and electricity tariffs, along with Nigeria’s electricity tariff band system, have further pushed many Nigerians towards renewable energy solutions.
The Electricity Act 2023 has also facilitated decentralization, allowing for more off-grid and mini-grid solutions.
Solar system adoption is becoming a common sight in several Nigerian homes, commercial outlets, hospitals and the adaptability has increased due to the influx of second-hand panels into the markets.
Although the current foreign exchange rate has significantly affected the prices of most of the equipment being used in installations, many Nigerians still prefer having solar in their homes.
For them, it is more reliable and they enjoy their investments on the power source unlike the grid electricity that has been widely condemned for its paralytic and epileptic supply.
It was gathered that the rising exchange rate has almost tripled the prices of panels, batteries, solar charging controllers, and inverters.
However, many Nigerians are seeing solar systems as a reliable alternative to the increasing cost of diesel and petrol to power generators.
Those working from home for their different establishments find it as a reliable alternative to the public power supply, as well as cost-effective.
A resident of Abeokuta, Ogun State capital, Hannah Akinola, disclosed that since her family installed solar equipment running to N2 million, they have not bothered recharging their prepaid meter.
“We use solar lights at home and in our offices because of unstable power supply. Though it costs us nothing less than N1.9 million for the one we use at home, we are comfortable with it because it is very stable and reliable.”
“We use solar lights at home and in our offices because of unstable power supply. Though it costs us nothing less than N1.9 million for the one we use at home, we are comfortable with it because it is very stable and reliable. We now recharge our prepaid meter whenever we like because there is constant solar power,” she said.
Another Nigerian, Ayobami Agboola, lamented that the deteriorating supply of electricity forced him into acquiring alternative solar energy, adding that the one he has is for powering light at home.
“I bought my solar at the rate of N140, 000 and it has been serving me well. But, you know there are certain things you won’t be able to power with solar once you are using the very big ones such as the industrial solar. Using a prepaid meter makes it easier for me because I just have to recharge the meter whenever I feel like,”Agboola said.
A Nigerian in Kwara State, Victor Kolawole, stated that solar lights have been helpful to him, adding that security has been enhanced in his residential area owing to constant illumination.
“Kolawole said, “I bought a solar system in order to ensure that my surroundings are not dark at night because we don’t use public electricity often. I pay N10, 000 for electricity for a three bedroom flat every month and it is a pity that I cannot even boast of enjoying the electricity. So, if I can pay electricity distribution company N120, 000 annually, I don’t think getting a solar of N200, 000 that will be serving me forever is too much. So, whenever I am returning home at night, I am very certain that there will be a light at home, even if it is to charge my phone.”
Worship centres are not also left out in the categories of sectors who have embraced solar power.
THE POINT observed that many private secondary schools have been fixing solar power in their schools after the condemnable late night writing of English papers in the ongoing West African Examinations.
A member of the National Association of Proprietors of Private Schools in Nigeria in Osun State, Akin Oyedun, said it has been difficult for schools to meet up with skyrocketing electricity bills.
“The truth is that providing electricity in our schools has been a very challenging task because of the bills. So, if you go to many schools, you won’t find light. But, I must be plain with you, the recent event where WAEC candidates wrote exams at night has opened the eyes of NAPPS to the essence of having viable electricity in their schools,” he noted.
The school proprietor further explained the need for schools to electrify their schools with solar because if there is no deterrence owing to the recent late night examination, then, it means that it has come to stay and another examination body wouldn’t mind conducting paper in wee hours.
The Chief Executive Officer of Mone Solar, Ewere Okah, said Nigerian households must adopt solar energy as an alternative source of power to solve the country’s challenges
He stressed that the hike in electricity tariff and removal of fuel subsidy had increased the cost of electricity from the grid and fueling generators.
“Solar will create an energy architecture that is different from the one we know today,” he said.
An electricity analyst, Lanre Elatuyi, said the energy produced by solar panels is at zero marginal cost and noted that the savings from electricity bills could offset the upfront investment.
Speaking on the affordability of solar power, Elatuyi urged governments to put in place policies to encourage investors in the renewable space and a credit system for households that want to acquire solar power systems.
“The expectation is that with the increase in petrol price, people will naturally look for substitutes, given the fact that we are in a country with an abundance of sunlight, it is expected that we take advantage of this free source of energy as energy access is low in the country and reliability is a big issue, so that incentives are there for the adoption of alternative source of energy, especially from the solar, though the barriers are still there and if these barriers are not surmounted, solar power adoption may still be a far cry,” he said.
On the potential impact of widespread solar power adoption on the environment and economy, Elatuyi said solar power reduces dependence on imported fossil fuels, enhances energy independence and reduces vulnerability to price fluctuations or supply disruption, offering long-term stability as sunlight is free and abundant.
“On the economy, the solar industry provides employment opportunities including manufacturing, installation, maintenance and research development, as the solar sector expands, it stimulates job growth and local economies, the growing solar industry attracts investments and creates business opportunities, including solar panel manufacturing, installation companies and related services,” he said.
Speaking on policies or incentives to encourage more people to switch to solar power by households, Elatuyi said implementing net metering policies that allow households to sell excess solar-generated electricity back to the grid should be encouraged, adding that the system gives credit to homeowners for the electricity they contribute, effectively reducing their overall electricity bills, making solar adoption more economical for households.
“With policies, we can set renewable portfolio standards that require a certain percentage of electricity generation to come from renewable sources, including solar power, the new electricity act makes provision for this, and if we can also grant easier and quicker permits, we will likely see more adoptions,” he said.
A pharmacy operator in Okota, Lagos, who identified herself only as Bolanle, stated that the high cost of petrol had made it difficult for her to keep her generator running throughout the day, as there was usually little or no electricity supply.
She explained that it was no longer sustainable for her to continue to rely on the generator due to the unbearable cost of running it.
She disclosed that she had no choice but to install solar panels, which had been supplying steady electricity, reducing her overhead costs.
Also, an electrical engineer, who identified himself as Tunde, stressed that with the current price of petrol, the amount he was spending on petrol to power his house and cars was telling on him, so he decided to opt for solar energy to mitigate the costs.
He noted that it had been serving him well and there was no generator noise, adding that some of his neighbours in his estate had also bought into the use of solar panels.
Similarly, an IT programmer, Lanre Balogun, who works remotely, stated that the huge amount he was spending on petrol to fuel his generator, forced him to install solar panels in his house.
A 45-year-old food vendor in Isolo, Lagos, Amarachi, claimed the erratic electricity supply and the high electricity bills she was paying almost grounded her business.
Despite investing in various expensive generators to address the issue of unreliable power supply, the fumes and noise generated by the generators posed health challenges to her and her customers.
According to Amarachi, it has been difficult to transfer the rising energy costs to her customers because of the fear of losing them to competitors.
She expressed her frustration with the irregular power supply from the city’s central electrical grid, highlighting the low current that failed to meet the power demands of her shop.
She disclosed that she had succeeded in overcoming the electricity challenge after her friend introduced her to an affordable solar-powered appliance with a favourable installment payment system.
After integrating the solar-powered solution into her business, Amarachi explained that she currently enjoys a reliable electricity supply.
Solar radiation being abundantly present in Nigeria is one area of focus among renewable energy resources.
Nigeria receives an average solar radiation of about 7.0kWh/m2-day (25.2MJ/m2-day) in the far north and about 3.5kWh/m2-day (12.6MJ/m2-day) in the coastal latitudes.
The various energy centres are making giant strides in the production of solar energy technologies for the direct harnessing of solar energy since the country is situated in the high solar radiation belt of the world.
Energy research centres are also making intensive efforts to popularise the applications of these devices to become household commodities.
Some state governments, in collaboration with non-governmental agencies, have sponsored some solar energy projects in some rural communities, drive water, and small-scale industrial projects.
In many states across the country, street lights are being powered by solar systems.
Many Nigerians who have been able to purchase solar energy said they were tired of constant failures by the conventional electricity suppliers to make available power that is commensurate with what they are paying for.
THE POINT gathered that many solar companies adopt the installment payment as a strategy to get more customers. This strategy seems to be working as average Nigerians go for the various packages that suit their purses.
In their separate remarks during their interviews with THE POINT, Nigerians said they are gradually losing interest in public electricity.
Checks at new residential sites where electricity is absent revealed that many homeowners use solar lights.
Also, hospitals, media organisations and other institutions have installed heavy solar equipment for steady power.
For instance, recently, the Ibadan Electricity Distribution Company disconnected the power of the Osun State University Teaching Hospital Complex. For over a month, the hospital has been running on solar and alternative energy sources.
A visit to the dealers at some solar light companies revealed that it is not only property owners who have adopted the solar energy system, but tenants, and hotel owners are also utilising the opportunity.
The dealers revealed that the solar energy system requirements include installation accessories such as DC cable for the panel, DC surge protector, AC and DC breaker for high voltage.
It was gathered that the Canadian mono solar panel 300W 24V costs between N65, 000 and N260, 000, while Tubular or Dry cell batteries hover between N290, 000 to N350, 000 and 2.5KVA inverters cost N270, 000, while 3.5KVA inverters are sold for N360, 000, depending on the brand.
Also, the faster charger controllers known as MPPT 80A cost N220, 000; 100A (N270, 000), while the slower charger controllers PWM 60A cost N45, 000; 80A (N70, 000); Also, 50A controllers are sold N37, 000; 40A – N26, 000; 30A – N17, 000, and 20A – N8, 000.
According to the dealers, a room apartment will need two 12V batteries and four solar panels of 300W, a 2.5KVA 24V inverter, 60 Amps charge controller, and the installation will cost about N1.5 million.
It will power a television, fan, lighting point and refrigerator; while a mini apartment will need two 12V batteries, six solar panels of 300W, a 2.5/3.5KVA 24V inverter 60A charge controller, and cost about N1.5 million.
The dealers at Dlight lights in Osogbo, said the demand for solar energy systems is high due to power outages in the country.
According to Debo Adeyinka, Area Business Manager of Dlight, Nigerians might soon forget the public electricity and their generators because “innovative means of power is taking over.”
He said, “Solar system has taken over and as it stands now, the demand is high because there is minimal electricity supply in different parts of the country and people can no longer afford to buy fuel for generators.”
The Chief Executive Officer of Beebeejump International Ltd, a solar company, Peter Zhang, said that in Nigeria, there had been significant patronage, especially after the removal of petrol subsidies last year.
Zhang said that there was a huge potential for utilising renewable energy sources, especially solar and hydropower, along with traditional petrochemical-based power generation.
“THE POINT gathered that many solar companies adopt the installment payment as a strategy to get more customers. This strategy seems to be working as average Nigerians go for the various packages that suit their purses.”
“Small and medium enterprises bear the burden of paying expensive bills for unstable power supply, even as the Nigerian Electricity Regulatory Commission increases electricity costs per kilowatt-hour.
“Businesses utilising solar power not only benefit from reduced operational costs but also enhance their brand image and perceived value among consumers by contributing to climate change mitigation efforts,” Zhang added.
He noted that the market had been experiencing variations in product quality, with lower quality products being sold at lower prices, leading to a situation where inferior products dominate the market.
He said that was one of the challenges solar energy companies were grappling with.
A Lagos-based solar service provider, Ety Christo, said there has been an increase in demand for solar-powered equipment recently, compared to last year.
He said the demand is mostly for low-capacity systems.
Christo said that the recent sharp devaluation of naira has increased the cost of equipment, which is mostly imported.
“The demand ratio for large capacity is about 30 per cent while that of low capacity is about 50 per cent. Some people go for just solar-powered appliances. A lot have shown interest in installation but can afford the cost because of the financial crisis,” he said.
Also speaking, an energy economist, Habeeb Jaiyeola, said the price per litre increased as a result of the subsidy removal on PMS, thus pushing demand for alternative means of power away from the petrol-powered generating sets.
Jaiyeola said that the recently passed Electricity Act 2023 is expected to open up the power sector to competition across sub-sectors, enabling price drop over time.
He added that solar power has a relatively low-average maintenance cost and a very long average life span, which makes it upfront and cheaper in the long term.
“The initial installation cost of solar power will play a significant role in the consideration and acceptability of solar as the preferred alternative power source, even as the policies in the Electricity Act 2023 are expected to increase the acceptability and use of solar power sources,” he said.
Speaking on the potential impact of widespread solar power adoption on the environment and economy, the expert said solar power is environmentally friendly and enables the reduction of carbon emissions.
He emphasised that the liberalisation of the sector would encourage a different investment mix, which should also be targeted at underserved communities while investors make reasonable returns on their investments.
“The future of solar power in Nigeria is expected to contribute significantly to the attainment of the Sustainable Development Goals (SDGs) Seven. “However, the achievement of this objective will require a sustainable approach from government and private sector towards the development of the Nigeria power sector,” he said.