The high cost of solar energy systems continues to be a major obstacle for the average Nigerian. Even though solar energy saves money over the long run, many people cannot afford the upfront outlay. This article examines feasible fixes and cost-effective solutions that can increase accessibility to clean energy.
This is a typical case of an average Nigerian, Mr. John, a mathematics teacher in a secondary school in Lagos, who lives with his family of four in a one-bedroom apartment. The house is poorly ventilated and lacks an adequate power supply. He has a ” I pass my neighbour generator” which he used to power his fans, TV and bulbs, he ensured the generator runs through the night to keep the fans on, so his family can sleep well.
The fumes and the noise of the generator are the major challenges for him to study for his lessons, coupled with the cost of running the generator daily on his N70,000 monthly salary.
He thought of buying a solar system to give his family the best source of power but the cost of acquiring a 1.5KVA full solar system which is about N850,000 was an impossible task for him to accomplish.
His question is – Is Solar Energy only for the wealthy?
The effects of global warming are felt by all, both the rich and poor, why can’t solar energy be affordable for all?
– He pondered…
Why Do Solar Energy Systems Cost a Lot of Money?
Nigerian solar system prices are high for a number of reasons, including:
- Tariffs & Import Charges: The majority of solar equipment, such as panels, batteries, and inverters, are imported. The equipment is more expensive than it needs to be due to high import fees, taxes, and shipping expenses. The total cost of building a solar system rises as the exchange rate increases, and these high expenses are passed on to customers.
2. Absence of Affordable Financing Options: The majority of Nigerians are unable to obtain financing for solar systems. Spreading the cost of installation over time could make the purchase more reasonable, but many consumers find it difficult to do so since low-interest loans or flexible payment plans are not readily available.
3. High Cost of Quality Solar Products: When it comes to solar energy, quality counts. While high-quality systems that last for decades come at a cost, cheap, low-quality solar panels and batteries may fail after a few months. Nigerians looking for dependable, long-lasting solutions frequently have to decide between more costly, robust systems and less expensive, less dependable substitutes.
Alternatives to High-Cost Solar Energy Systems
Even though solar energy systems may be too expensive for many Nigerians, there are a number of alternatives that can help increase access to clean energy:
- Solar as a Service (Solar Pay As You Go)
In Nigeria, pay-as-you-go (PAYG) solar options are becoming more and more popular. With this model, customers can install solar panels without having to cover the entire upfront cost. Rather, they pay for the energy they consume gradually, much like they do for grid-supplied electricity or generator fuel. Frequently, mobile platforms or other adaptable channels are used to make these payments.
This makes solar energy more affordable for low -and middle-class families by easing the financial strain of solar system purchases. Users can enjoy free electricity once they have paid off the solar system over time. Now that PAYG solar solutions are available in Nigerian from companies such as Sun king Solar
- Inverter-Battery Solar System
Inverter-battery solar systems provide a more affordable option for people who cannot afford a full solar installation. The Inverter-battery solar system is powered by the national grid which when fully charged can serve as a good backup power of 4 to 18 hours depending on the battery capacity. By using Inverter-battery solar systems to augment their energy requirements, these devices enable households to lessen their need for costly fuel or grid electricity.
- Community-Based Solar Project
Community leaders should educate others about the advantages of switching from generators to solar power and leverage on group purchasing programs as an additional means of reducing expenses since they allow communities to combine resources to purchase solar systems in larger quantities, which lowers the cost of ownership for everyone.
In rural or semi-urban locations with limited access to energy, community solar can be very beneficial for families searching for less expensive options than generators. Community solar projects have occasionally received funding from non-governmental organizations (NGOs) or local governments, which further lowers participation expenses.
4. Solar Leasing
Solar leasing is another alternative where a Solar company installs solar panels on a home or business, and the property owner agrees to lease the system for a fixed monthly fee. The homeowner does not own the system but benefits from the electricity generated. Leasing allows homeowners to access solar power without the heavy upfront costs, while the leasing company maintains ownership and handles all maintenance and repairs.
This method works best for SME businesses in clusters such as a Plaza, the shops are connected to the solar system and they are charged monthly based on their individual energy usage.
The Way Forward: Bringing Solar Power to Every Nigerians’ Reach
“We all have the right to healthy living, make clean energy affordable for all”.
A number of actions need to be made in order to get over the high cost barrier and guarantee that clean energy is available to all Nigerians, this includes:
- Government Intervention.
A number of crucial actions must be made in order to increase Nigerians’ access to and affordability of solar electricity. Firstly, the government is a key player in promoting the use of solar power by providing tax cuts or subsidies to people and companies who purchase solar energy equipment. More Nigerians could afford the first installation if measures were implemented to cut the cost of solar equipment. To assist individuals in making the changeover to solar energy, the government might potentially implement programs that offer low-interest loans or other financing choices.
2. Increase Financial Access:
Banks ought to create low-cost credit packages designed especially for solar power. Over time, more Nigerians should be able to finance solar systems thanks to these loans’ low interest rates and flexible repayment terms, one of such banks is Access Bank
3. Public-Private Partnerships:
By working together, public, commercial, and international organizations such as the United Nations can lower the cost of solar systems and provide more creative financing solutions, such as leases or pay-as-you-go financing.
4. Education and Awareness:
A large number of Nigerians are not aware of the long-term financial benefits associated with solar electricity. Ongoing public relations campaigns, community engagement, and educational initiatives such as D’Young Energy can assist in changing public opinion and advancing solar energy as a practical and affordable substitute for generators.
In conclusion, community solar initiatives, government subsidies, PAYG models, and other creative options present hope for increased accessibility even if the high cost of solar systems continues to be a major barrier for many Nigerians. Solar energy has the potential to be a practical solution for the typical Nigerian, enabling them to save costs, enjoy reliable power, and protect the environment by promoting public awareness and legislation, financing alternatives, and infrastructure.
For a community based solar workshop training, you can reach out to us on +2347037179294, we love to work with you.
