There has been the need for a constant electricity supply to households and businesses in Nigeria, and for some reasons, it looks like it’s too big a need to be met. This inability to enjoy an essential necessity such as electricity has become a problem across the country and having a very negative impact on the economy. Since business organizations must turn to alternatives in providing themselves electricity, the cost of production and general overhead of doing business has skyrocketed and it’s telling on the price and quality of commodities that are being released into the market.
Going back to February 2015, there was a total generation of about 2,900 MW by the national grid which is about 1.8 percent of the estimated capacity which is required nationwide. The then minister of Power, Prof. Chinedu Nebo confirmed in January that Nigeria needed about 160,000 MW in order to reach globally accepted standards and be able to supply stable electricity for the over 170 million population. Going forward, Nigeria generates just about 10% of the amount of electricity that is generated by South Africa which has a population size of barely up to 40% of that of Nigeria, according to Bloomberg.
This is quite a disappointment for many decades now that the largest economy in Africa can not boast of a stable supply of electricity. This explains the reason why Nigerians had to turn to alternatives such as the use of fossil fuel powered generators. As at 2009, it was revealed by the regional chairman of the Manufacturers Association of Nigeria (MAN), Dr. Frank Jacobs, that about 60 million Nigerians own fuel powered generators to support themselves during power cuts. Since then, the figure has ever been increasing with no end in sight.
Table of Contents
- Going Solar
- The cost of solar energy installation
- Cost comparison between solar energy and fuel powered generator
The good news we have today is that there is a better alternative now which is solar energy. It is clean, renewable, requires little or no maintenance and the solar panels last between 25 to 30 years. However, the supposed disadvantage is its high cost of upfront cost of installation which is one-time. More than 50 percent of the Nigerian population cannot afford the initial cost of installation. But with support and partnership between the government and private sector, this solar energy can be made available to every home. Payment methods such as Pay-as-you use can be initiated.
The Cost of Solar Energy Installation
One good news about solar energy is that: the cost has been on the decrease since the past decade. This is largely attributed to the constant fall in manufacturing cost and forces of market competition. In 2005, the average cost of solar panels was $3.00/watt. And then dropped to $0.48/watt in 2015. The cost of installing a 3KW solar system for a 3-bedroom household with average gadgets such as Air Conditional (AC), Television, Fridge, Printer, etc, goes for ₦1.5 million naira ($3,896) and above. A 1KW solar system cost starts from ₦496,000 ($1,288). This cost includes installation, battery, inverter and other components with the solar panels having a life span of between 25 years to 30 years.
Solar energy keeps advancing and becoming more reliable day by day as the technology is always being improved. Now, we can gladly say it is the best alternative for the huge Nigerian population in need of stable electricity supply. Also, knowing that it is powered by the solar and we have abundant sunshine in this part of the world, just makes it feel right.
Comparison Cost Between Solar Energy and Fuel Powered Generator
For a 3KW solar system, you will spend a one-time installation cost of ₦1.5 million which has a life span of 35 to 30 years with little or no maintenance cost. And then for a fuel powered generator of 3KW, the cost would start from ₦190,000. You might likely do replacement every 4 years which would have been 6 replacements in 25 years at the cost of 190,000 x 6 = ₦1,140,000.
With a liter fuel going for ₦145, you will probably need 5 liters per day at the cost of ₦725. In a year, that’s ₦725 x 365 days = ₦264,625. In 25 years, total cost would have been ₦264,625 x 25 = ₦6,615,625
Total cost of running on fuel powered generator in 25 years is cost of replacements + cost of fuel. ₦1,140,000 + ₦6,615,625 = ₦7,755,625
Note: Let’s assume that both cost of changing solar system battery per 3 years cancels out the cost of frequent repairs of fuel powered generator.
So here you have all the information you wanted on the cost of solar energy installation in Nigeria. It is obvious that going solar is the future. And since we cannot wait for the government to move all of us to solar, households and businesses are doing so by themselves in order to cut cost on power. Whenever you decide to go solar as well, don’t forget that here at Vesselnet Solar, we are your No.1 dependable plug. We also supply some of the most durable solar batteries in the industry. Vesselnet Solar is the No.1 distributor of shoto battery in Nigeria with a 3 years warranty.
Call us at: 09063063687