Is Solar Energy Affordable for the Average Nigerian Household?
The numerous power challenges faced by Nigerians on a daily basis has led to most Nigerians looking for alternative power sources that would help push their business to a more convenient level, However one question most Nigerians intending to go solar always asks is whether solar energy is truly affordable for an average Nigerian household?
To get a clearer understanding of this question, we’ll try to break down how much it could cost you to install solar panels in your homes.
We’ll equally look at some of the benefits of Installing one and some financing options you could look at to get your solar panels installed at more affordable prices.
Why Are Most People Considering Solar Energy in Nigeria?
Every now and then in Nigeria, we’re faced with constant collapses of the national grid, this of course has led to constant power outages as well as an obvious rise in the cost of electricity bills.
Because of this fact, many Nigerians have started looking for alternative ways to power their homes as well Businesses.
Solar energy has gradually become that alternative most Nigerians are craving for, solar has the capacity of giving reliable and cost effective electricity when compared to our traditional electricity, this of course has led to most Nigerians homes generating their own electricity while reducing how much they depend on the national grid in the process.
Breaking Down the Costs of Solar Energy.
1. Upfront Costs
The first set of money you’ll have to pay when you are installing solar system in Nigeria is probably the most expensive part of the whole process, it’s always a concern to most Nigerians.
However there are a lot of things the cost is dependent on, for example the following can have an effect on how expensive or cheap the Installation process is going to be.
a.The size of the solar could affect the price, are you buying a bigger one or smaller one? Remember the bigger the system, the higher the price of purchase.
b.The type of the solar panels you are buying and the type of battery will also affect the cost, the most efficient types of solar system tend to be more expensive too.
c.Buying a more quality Inverter will only mean paying more money. also other components could also have an effect on the price.
d. The cost of Installation as well as how much you spend on maintenance also plays a huge role in the pricing system.
If you are planning on mounting a basic solar set-up for a small household in Nigeria which of course includes getting a solar panel, an inverter and also a battery could cost you around N150,000 to about N750,000.
If you are Installing for a more large homes that could mean more appliances, then you should be budgeting around N1,000,000 to about N3,000,000 or even more
2. Long-Term Savings
Although a lot of people will say that the upfront payment seems to be on the high side, However if you consider the fact that it is a long term investment that will reduce or even eliminate Electricity bills, then you might actually have a second thought.
If you manage to install a solar system in your home, you could be practically saving with N20,000 to about N50,000 or even more monthly from electricity bills and fuel.
READ ALSO: What Are the Financing Options Available for Solar Installation in Nigeria?
So you see, the solar system can pay you for the cost of Installation in just a few years time.
Solar Energy Cheaper Than Generator Power?
A lot of Nigerians absolutely rely on petrol or diesel generators to power their homes and Businesses, but if you decide to compare the cost as time goes on, you’ll discover that installing solar systems is way cheaper than fueling and servicing your Generator sets.
Here we’ve made a cost comparison of different Power Sources in Nigeria
1. Petrol Generator (2.5kVA) If you intend buying a 2.5kVa petrol Generator in Nigeria, you should be budgeting at about N180,000 upfront to purchase one, while it seem cheaper, when you include the cost of fueling as well as inevitable maintenance expenses, you see that the money can quickly add up, you could be spending up to N50,000 monthly on Generator maintenance and buying of fuel.
When you calculate this on a yearly basis, you’ll see yourself spending more than N600,000 yearly and that will easily translate to N3,000,000 over a five year period. which is obviously outrageous.
2.Diesel Generator (5kVA)
Buying a 5kVA diesel generator could cost you about N700,000 However this cost even gets higher if you consider expenses like fueling and maintenance which could cost you up to N120,000 monthly and you could be spending around N1,440,000 every year and about N7,200,000 over a period of five years. This is also obviously expensive.
3. Solar Power (3kVA System)
If you purchase a 3kVA solar panels system, it would give you an initial cost of around N1,500,000. Unlike the generators we’ve discussed Above, the Solar system absolutely has no monthly or yearly running cost since you get sunlight absolutely free.
What that means is that over a 5 year period the cost of running a solar system still stands at N1,500,000, so obviously you can see that in the longer run, solar system is by far the cheaper option.
Some Challenges & Misconceptions About Solar Energy in Nigeria
There are some misconceptions about solar energy in Nigeria that we’re going to clear
1. “Solar Panels Don’t Work When It’s Cloudy”
This is one of the biggest misconceptions about the solar system in Nigeria, the truth is that solar panels can still generate electricity for you even on days when the weather seems cloudy even though its efficiency will be slightly reduced.
2. “Solar Energy is Too Expensive”
Although the payment you make upfront may seem to be on the high side, however solar energy is cheaper on the long run if you compare it with generators, also the have some good financing options meaning it is actually affordable to those that explore these options
3. “Solar Batteries Don’t Last Long”
This is another misconception, if you are able to get high quality lithium ion batteries, they could last you for around 5 to 10 years albeit with proper maintenance. Remember that at Arenahub, we do provide very durable and reliable batteries with warranties too.
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