What Are the Financing Options Available for Solar Installation in Nigeria?

Both homes and Businesses are now leaning towards solar energy as a result of inconsistent power supply from Nigeria traditional electricity. 

The high cost of paying for electricity bills as well as the often collapsing of the national grid simply means Business owners and homes are looking for better and cheaper alternatives for power which solar energy is rightly providing.

However Even though installing solar means you are going to save more money on the Longer run, the cost of Installing the solar system first is proving a huge barrier to most people who are not able to fork out the money, this has led so many Nigerians to wonder if it is possible for them to afford solar systems without having to pay the full amount upfront.

Thankfully enough, there are lots of financing options out there that means solar energy could be more accessible to lots of people who’re looking to acquire one, we’ll now look at the different ways you can easily finance your solar installation here in Nigeria, so there’s absolutely no cause for alarm, you could rightly make the switch to renewable energy without having to break the bank.

Why Should You Consider Solar Financing?

We know for a fact that installing solar systems is a long term investment that doesn’t only help you be in complete charge of your power generation, but also reduces or even eliminates your having to pay electric bills.

However the cost that you could incur from buying a solar panel, the inverter, battery and Also Installation process is quite Expensive, you could as well spend from N150,000 to about N3,000,000 or even more depending on the size and quality you are getting.

However with Solar financing, Landlords and Businesses could easily spread the cost of solar installation over a period of time, this of course will make it way more affordable for lots of people who couldn’t make a one time payment.

We can assure you that with the right financing options which we’ll discuss in this post, you could install your solar system without having to break the bank with a one time payment.

Available Solar Financing Options in Nigeria

There are so many financing options for those looking to Install solar systems in Nigeria, we’re going to look at each and every one of them to see which of the options would be best for you.

1. Solar Loans from Banks and Financial Institutions

So many Nigerian banks as well as other financial institutions in the country have now begun to give out loans to support homeowners and Businesses that are adopting renewable energy.

These loans are arranged in such a way that repayment is quite simple and flexible, the interest rates are quite low and you’ll have access to a more reasonable repayment time frame which of course will give you enough time to repay your Loan

SomeExamples of Banks Offering Solar Loans in Nigeria:  

a.First Bank Solar Loan:Firstbank is one of the banks in Nigeria that gives loans to customers who’re Interested in going solar, The bank often partners with solar providers to give out these loans to customers who may not be able to meet up with the upfront payment.

b.Access Bank Green Energy Loan: Access bank is another Nigerian bank that partners with solar providers to give out loans through the Access Bank Green Energy Loan.

c.Jaiz Bank Renewable Energy Loan: Jaiz Bank also gives out loans Through financing options that are sharia complaint

How The Loan Applications Works

a.Simply apply for these loans in any bank of your choice.

b.After Applications the bank will now evaluate you to see if you are qualified, if your creditworthiness is great, they’ll approve your loan.

c.You will then use the money, buy and install the solar system then you will start repaying your loans in installments.

2. Buy Now, Pay Later (BNPL) Solar Plans

Another solar system financing option you might have to consider is the Buy Now, Pay Latter (BNPL) financing options, this model is gradually gaining serious popularity here in Nigeria. With this system, customers could be allowed to Install solar systems in their homes and places of business then pay for them gradually as time goes on. Many solar companies including Arenahub also offer the BNPL plans to customers who are deemed qualified.

READ ALSO:Are There Any Government Incentives or Subsidies for Solar Energy in Nigeria?

SomeBenefits of BNPL Solar Plans:

a.You don’t have to bother yourself with paying large upfront payment.

b.The repayment options are actually flexible, you could choose to pay back some fraction monthly or even quarterly

c.You will immediately have access to your solar panels and start enjoying constant power. To start This process, you

a.Have an agreement with the company that’s providing the solar system for you.

b.The solar company will then install the panels in your home or your place of business

c.You will Start paying for the solar system in installments based on your agreement with the company.

3. Solar Leasing (Pay-As-You-Go Model)

If you can not afford to pay for a solar panel outrightly, you could consider the option of leasing or renting, lots of people are gradually towing this part too, in the solar leasing scenario, you’ll have an agreement with the solar company to maintain the solar system although you’ll be paying a fixed amount monthly for using the solar system.

This particular system is very popular in rural areas or a semi Urban area where financing solar systems might be unaffordable. Arenahub is one of the top solar companies in Nigeria that provides leasing options to their customers

4. Government and NGO Solar Subsidies & Grants

The Nigerian government in coalition with some international organizations always offers Different programs to reduce the cost of Installing solar systems in the country.

The major aim of these programs is to help promote renewable energy as well as to help improve the access of electricity to areas that a bereft of Electricity

some Examples of Government and NGO Solar Programs:

a.Rural Electrification Agency (REA):the REA helps to give grants as well as reduce cost of solar installations to households who are interested.

b.World Bank & Solar Nigeria Program: This particular initiative helps to fund solar installations in most schools, hospitals as well as homes.

3.USAID and Other Development Agencies:

Some agencies and NGOs helps in offering financial aid as well as subsidized solar system especially for rural electrification