As Nigeria grapples with a failing public power supply, skyrocketing electricity tariffs, and the looming threat of further tariff hikes, solar energy adoption has surged, driven by the urgent need for reliable and affordable energy solutions. Experts in the renewable energy sector have highlighted a significant increase in solar adoption over the past two years, attributing the trend to the deteriorating state of the national grid, rising fuel costs, and shifting public perception toward sustainable energy.

The recent announcement by Nigeria’s Minister of Power, Adebayo Adelabu, regarding plans to increase electricity tariffs for Band B, C, D, and E customers has further intensified the demand for alternative energy sources. This comes on the heels of the massive tariff hike for Band A customers, which saw electricity costs rise to between N220 and N250 per kilowatt-hour (kWh). Against this backdrop, solar energy has emerged as a cost-effective and reliable alternative for households and businesses alike.

Felix Adekunjo, Chief Executive Officer of Excellent-Glory Solar System, explained that frequent blackouts and grid failures have made solar energy indispensable for many Nigerians. “The instability of the national grid, coupled with the removal of fuel subsidies and soaring diesel prices, has made generators increasingly expensive to operate. Solar energy, on the other hand, offers a cheaper and more sustainable solution,” he said.

Adekunjo noted that the global decline in the cost of solar panels, batteries, inverters, and other components has made solar systems more accessible to average households and small businesses. “Compared to two years ago, the prices of solar components have dropped significantly due to technological advancements and economies of scale. This, combined with growing institutional support, such as Access Bank’s Switch to Solar project and international partnerships, has encouraged more Nigerians to embrace solar energy,” he added.

Despite these advancements, Adekunjo acknowledged that upfront installation costs remain a barrier for many Nigerians. “While solar energy offers long-term savings, the initial investment can be prohibitive. Additionally, the lack of skilled technicians, poor installations, and inadequate maintenance by untrained personnel continue to hinder widespread adoption,” he said. He also emphasized the need for flexible payment plans to make solar systems more affordable for low-income households.

Adewale Odugbesan, Chief Executive Officer of Royal Power and Energy Limited, echoed these sentiments, noting that solar energy has become increasingly competitive with grid power and diesel generators. “When we started eight years ago, solar energy cost about $3 per kilowatt. Today, it’s down to approximately $0.1 per kilowatt. Compared to the current Band A tariff of N220 to N250/kWh and the cost of diesel generators at N400 to N450/kWh, solar is now the most cost-efficient option for powering businesses,” he said.

Odugbesan also highlighted the role of word-of-mouth referrals in driving solar adoption. “Nigerians who have adopted solar energy in the past two years have become advocates for its reliability, especially during grid failures or fuel scarcity. This has encouraged more individuals and organizations to make the switch,” he explained.

As the Nigerian government continues to grapple with the challenges of the power sector, the surge in solar adoption underscores the growing demand for reliable and sustainable energy solutions. With the threat of further tariff increases looming, solar energy is poised to play an even greater role in Nigeria’s energy future.

“The growth of solar is driven by the rising need for reliable energy, affordability, and a shift in public perception. While challenges persist, the trajectory shows that solar energy is fast becoming the future of energy in Nigeria, with even greater potential for expansion in the coming years,” Adekunjo said.