Decades ago, satellite dishes and television antennas dotted rooftops across Nigeria. Today, rows of solar panels are becoming the new sight as Nigerians turn to alternative energy solutions as electricity tariffs increase.
In 2024, the Nigerian Electricity Regulatory Commission(NERC) raised electricity tariffs for urban customers by 240%. Band A customers (neighbourhoods guaranteed 20 hours of electricity daily)—now pay ₦209/kilowatt-hour.
For a three-person household on band A with basic appliances like air conditioners, refrigerators, and televisions, monthly electricity costs can reach ₦45,000 monthly, more than half of Nigeria’s new minimum wage of ₦70,000.
In addition to the hike in electricity prices, fuel prices also quadrupled, putting further strain on households. In Akiode, a community in Lagos, residents want to be expressed downgraded from Band A over cost concerns. “Before Band A, five of us shared one meter, and we contributed around ₦10,000 or ₦15,000, and it lasted the whole month,” one resident said. “Now, we’re recharging daily or weekly. Sometimes, we spend ₦10,000 in one week. That’s money we used to spend on food. We can’t afford three meals a day anymore.”
Solar power as an alternative
With reliable grid electricity costing more than before and prices expected to rise even further as the federal government cuts electricity subsidies, solar is a sustainable alternative. There’s just one problem: the upfront costs.
Solar systems can range from ₦400,000 for a basic setup to ₦20 million for a fully off-grid solution. The wide price gap represents the different power needs of households and the level of independence from the grid one seeks.
For those just starting their solar journey, an entry-level system costing ₦400,000 offers a modest introduction to solar power.
This mini power station includes an inverter and a 500wh(watthour) mini lithium-ion-phosphate battery but no solar panels. It’s designed to support up to 500 watts to power basic appliances like a fan, TV, laptop, and mobile phone. However, this system is unsuitable for long power outages, as the backup lasts only 3 to 5 hours. This setup is ideal for short power interruptions but falls short for extended periods without grid power.
Mid-range solar systems: ₦1 million to ₦5 million
At a price point of ₦1 million, a 1kVA solar system offers more reliability. It includes a 1kWh inverter and a 2.4kWh Lithium ion phosphate battery, and a 450-watt monocrystalline solar panel. This system can power up to eight lighting points, two fans, a TV, a laptop, and several mobile devices. With a backup time of 6 to 8 hours, it is more suitable for more prolonged outages, though there is still a limit to the number of devices that can run simultaneously.
A lithium-ion-phosphate battery delivers three times the power of a lead-acid battery, even at high discharge rates, while maintaining a high energy capacity. Dry-power lithium batteries also have a higher energy density, with a weight-to-energy ratio (Wh/kg) of up to one-third that of lead-acid batteries.
Lithium iron phosphate batteries are preferred to lead-acid batteries due to their performance and efficiency. They offer higher energy density, meaning they offer more power while being more lighter and compact. They also charge faster and operate at higher efficiency and also minimizing energy consumption. Unlike lead-acid batteries, lithium-iron-phosphate batteries require little to no maintenance and can handle deeper discharges without significant degradation.
For ₦5 million, a 5kVA hybrid solar system provides an even more robust solution. This system has a 5kW hybrid inverter, a 5kWh lithium-iron phosphate battery, and 4.5kWh mono half-cut solar panels. It can support a variety of appliances, including 15 lighting points, two fans, two TVs, a washing machine, an inverter air conditioner, and a fridge. While all appliances cannot run simultaneously, careful scheduling allows for flexible use, providing backup power for 8 to 12 hours after sundown.
In 2024, social media strategist Agboola Sodiq spent ₦4 million on a 2.5kVA inverter system with six 400Watt solar panels. The system uses a pylon tech 5.12kWh lithium battery and powers two televisions, two deep freezers, 15 lighting points, 5-10 laptops, four standing fans, and a washing machine.
Before his solar setup, Sodiq spent up to ₦300,000 per month on fuel and electricity bills. Since switching to solar, he spends only ₦30,000 to ₦50,000 on fuel every six months. “I haven’t used my generator since the solar setup. Now, I spend ₦40,000 on electricity bills annually. I’ve saved ₦1,720,000 in just six months.”
High-end solar systems: ₦10 million to ₦20 million
For those with higher power demands, a 10KVA hybrid solar system that costs between ₦10 million and N20 million offers the potential for full-day electricity. This system includes a 10kWh hybrid inverter, a 10KWh lithium LiFePO4 battery, and 9kWh solar panels, enough to power 25 lighting points, four fans, two TVs, a microwave, and other household appliances. It offers a 12 to 15-hour backup, ensuring power is available throughout the day, even for larger households.
At the high end of the scale, a ₦20 million investment offers a 15KVA hybrid solar system. This system features a 12kW hybrid inverter, 33kWh lithium ion phosphate batteries, and 11kWp solar panels, making it suitable for residential and commercial setups. It can power a wide array of devices simultaneously, including three inverter air conditioners and three fridge/freezers, and provides backup power of 15 hours after sundown, allowing for off-grid living with careful energy load management.
The accessibility barrier
While the global cost of solar equipment has steadily decreased, particularly with a 20% drop in lithium battery prices from 2023 to 2024, Nigeria’s exchange rate fluctuations can dampen these price reductions.
As Rotimi Thomas, CEO of Sunfi, explains, “Despite the global decrease in solar prices, fluctuations in the naira exchange rate sometimes offset these benefits. However, the growing variety of solar equipment in Nigeria is helping to offer more price options.”
Flexible financing options, such as microloans, pay-as-you-go systems, and partnerships with solar companies, are increasingly being offered to help Nigerians overcome the financial hurdle. Furthermore, government incentives and subsidies for renewable energy adoption are becoming more discussed, although implementation has been slow.
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I am the CEO of 9JAGISTLAND.My name is Adedeji Timothy and my co-owner is Oyekola Damilare.This blog is born out of our passion to educating to people in all aspect of internet life.We are enthusiastic about writing posts and articles online.
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