The average cost of installing solar systems in Nigeria increased by 120 percent to N550,000 in 2023, as against N250,000 in 2022, primarily as a result of inflation and the depreciation value of the naira/dollar.
Over the weekend, the naira traded for more than N800 per $1, a development that increased the pressure on local investors looking to import solar products and other items from the international market.
Renewable Energy and Energy Efficiency Associations Alliance, REEEAA, Prof. Magnus Onuoha, confirmed this in an interview with the Vanguard.
He said: “This is why we are imploring de-risking investment institutions in the sector to ensure that these products are purchased with naira, against dollar, to guard against inflationary shocks. Infra-credit, for instance, has taken the lead.
“The average cost of installing solar systems has increased by over 100 per cent over the last 24 months because of the free fall of the naira and inflation.
”The costs of importation and logistics have also increased. For instance, a 1kva in 2022 would have been cheap at N250,000, but in today’s markets, 1kva costs between N450,000 and N550,000.”
Also speaking, the Deputy General Manager, External Communications, Total Energies, Dr. Charles Ebereonwu, said: “We have been able to cut the cost of operations by 4.8 per cent because of increased adoption of solar.
“Our first solar station which is located at Onigbagbo, Ikeja, Lagos, was inaugurated in June 2014 and every year, we have continued to equip more stations with solar solutions.
”The 256 stations are well spread across the country and we hope to add more before the end of the year.”
