Investing In Renewable Energy Amidst Fuel Subsidy Removal

Investing in renewable energy is good business as rising costs of electricity in Nigeria is stressful for residents. The use of generators, especially with the recent subsidy removal that took petrol pump price from N184 to between N488 and N600 per litre, is not easy. As such, procuring solar power and other renewable energy sources is the way to go.

Especially, with plans to increase electricity tariff by 40 per cent from next month July. Environmentalists are advocating scaling up renewable energy investment, arguing that if 30 per cent of Nigerian households turned to solar by 2030, 5 million metric tons of carbon dioxide would be avoided, reducing emissions from households by 30 per cent.

In this regards, the president of the Renewable Energy Association of Nigeria, Segun Adaju disclosed that, “we are already getting a lot of customer inquiries and requests for solar. Many potential customers are already ordering their solar systems. Also, this is a great opportunity to cut emissions by reducing the use of fossil fuels and shifting to solar and electric vehicles.”

Cost of Installation

Installing an expanded 4-kilowatt solar system, according to reports, would cost conservatively N3 million. That cost is too expensive for most families and small businesses, although, over a long time, it seems beneficial when compared to using electricity and generators. 

Moreover, my findings showed that there are several businesses now offering renewable energy, especially, solar, which is leading to a healthy competition among sellers, gradually reducing its price. 

Further investigations revealed that, with N200,000, you can subscribe to solar energy in which you can use your television, fan and three to four bulbs in your house.  Moreover, there are new entrants who now have payment plans for Nigerians to make it easier to purchase. You can pay over one to two years, depending on your choice and financial muscle and this solar lasts for three years before the battery is due for replacement.

When you compare this with the use of generators that requires fueling and regular maintenance to give the needed electricity output.

Need For Alternative Energy 

The Rural Electrification Agency(REA) is calling for adoption of solar energy, describing it as most viable solution to mitigate the impacts of recent removal of petrol subsidy and tariff adjustment.

The managing director of REA, Engineer Salihijo Ahmad, highlighted the emergence of solar energy as a sustainable and empowering solution for Nigeria.

Additionally, he emphasised that, solar energy adoption will expedite industrial activities, foster agricultural growth, and bolster small and medium enterprises.