Home Technology The price of going off-grid in Nigeria: From ₦400,000 to ₦20 million...

The price of going off-grid in Nigeria: From ₦400,000 to ₦20 million in 2025

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The price of going off-grid in Nigeria: From ₦400,000 to ₦20 million in 2025

A long time in the past, satellite tv for pc dishes and tv antennas dotted rooftops throughout Nigeria. Immediately, rows of photo voltaic panels have gotten the brand new sight as Nigerians flip to different power options as electrical energy tariffs improve.

In 2024, the Nigerian Electrical energy Regulatory Fee(NERC) raised electrical energy tariffs for city clients by 240%. Band A clients (neighbourhoods assured 20 hours of electrical energy each day)—now pay ₦209/kilowatt-hour. 

For a three-person family on band A with primary home equipment like air conditioners, fridges, and televisions, month-to-month electrical energy prices can attain ₦45,000 month-to-month, greater than half of Nigeria’s new minimal wage of  ₦70,000. 

Along with the hike in electrical energy costs, gasoline costs additionally quadrupled, placing additional pressure on households. In Akiode, a group in Lagos, residents expressed the should be downgraded from Band A over value considerations. “Earlier than Band A, 5 of us shared one meter, and we contributed round ₦10,000 or ₦15,000, and it lasted the entire month,” one resident stated. “Now, we’re recharging each day or weekly. Typically, we spend ₦10,000 in a single week. That’s cash we used to spend on meals. We will’t afford three meals a day anymore.” 

Solar energy instead

With dependable grid electrical energy costing greater than earlier than and costs anticipated to rise even additional because the federal authorities cuts electrical energy subsidies, photo voltaic is a sustainable different. There’s only one downside: the upfront prices.  

Photo voltaic methods can vary from ₦400,000 for a primary setup to ₦20 million for a completely off-grid answer. The large worth hole represents the completely different energy wants of households and the extent of independence from the grid one seeks. 

For these simply beginning their photo voltaic journey, an entry-level system costing ₦400,000  gives a modest introduction to solar energy. 

This mini energy station contains an inverter and a 500wh(watthour) mini lithium-ion-phosphate battery however no photo voltaic panels. It’s designed to help as much as 500 watts to energy primary home equipment like a fan, TV, laptop computer, and cell phone. Nevertheless, this technique is unsuitable for lengthy energy outages, because the backup lasts solely 3 to five hours. This setup is good for brief energy interruptions however falls quick for prolonged intervals with out grid energy.

Mid-range photo voltaic methods: ₦1 million to ₦5 million

At a worth level of ₦1 million, a 1kVA photo voltaic system gives extra reliability. It features a 1kWh inverter and a 2.4kWh Lithium ion phosphate battery, and a 450-watt monocrystalline photo voltaic panel. This technique can energy as much as eight lighting factors, two followers, a TV, a laptop computer, and a number of other cellular gadgets. With a backup time of 6 to eight hours, it’s extra appropriate for extra extended outages, although there may be nonetheless a restrict to the variety of gadgets that may run concurrently.  

A lithium-ion-phosphate battery delivers thrice the ability of a lead-acid battery, even at excessive discharge charges, whereas sustaining a excessive power capability. Dry-power lithium batteries even have a better power density, with a weight-to-energy ratio (Wh/kg) of as much as one-third that of lead-acid batteries.

Lithium-ion-phosphate batteries are most popular to lead-acid batteries as a consequence of their efficiency and effectivity.  They provide larger power density, that means they provide extra energy whereas being extra lighter and compact. In addition they cost sooner and function at larger effectivity and in addition minimizing power consumption. Not like lead-acid batteries, lithium-iron-phosphate batteries require little to no upkeep and might deal with deeper discharges with out important degradation. 

For ₦5 million, a 5kVA hybrid photo voltaic system offers an much more sturdy answer. This technique has a 5kW hybrid inverter, a 5kWh lithium-iron phosphate battery, and 4.5kWh mono half-cut photo voltaic panels. It will probably help quite a lot of home equipment, together with 15 lighting factors, two followers, two TVs, a washer, an inverter air conditioner, and a fridge. Whereas all home equipment can not run concurrently, cautious scheduling permits for versatile use, offering backup energy for 8 to 12 hours after sunset.

In 2024, social media strategist Agboola Sodiq spent ₦4 million on a 5kVA inverter system with six 400Watt photo voltaic panels. The system makes use of a pylon tech 5.12kWh lithium battery and powers two televisions, two deep freezers, 15 lighting factors, 5-10 laptops, 4 standing followers, and a washer.

Earlier than his photo voltaic setup, Sodiq spent as much as ₦300,000 monthly on gasoline and electrical energy payments. Since switching to photo voltaic, he spends solely ₦30,000 to ₦50,000 on gasoline each six months. “I haven’t used my generator because the photo voltaic setup. Now, I spend ₦40,000 on electrical energy payments yearly. I’ve saved ₦1,720,000 in simply six months.”

Excessive-end photo voltaic methods: ₦10 million to ₦20 million

For these with larger energy calls for, a 10KVA hybrid photo voltaic system that prices between ₦10 million and N20 million gives the potential for full-day electrical energy. This technique features a 10kWh hybrid inverter, a 10KWh lithium LiFePO4 battery, and 9kWh photo voltaic panels, sufficient to energy 25 lighting factors, 4 followers, two TVs, a microwave, and different family home equipment. It gives a 12 to 15-hour backup, guaranteeing energy is on the market all through the day, even for bigger households.

On the excessive finish of the dimensions, a ₦20 million funding gives a 15KVA hybrid photo voltaic system. This technique incorporates a 12kW hybrid inverter, 33kWh lithium ion phosphate batteries, and 11kWp photo voltaic panels, making it appropriate for residential and industrial setups. It will probably energy a wide selection of gadgets concurrently, together with three inverter air conditioners and three fridge/freezers, and offers backup energy of 15 hours after sunset, permitting for off-grid dwelling with cautious power load administration.

The accessibility barrier

Whereas the worldwide value of photo voltaic tools has steadily decreased, significantly with a 20% drop in lithium battery costs from 2023 to 2024, Nigeria’s alternate price fluctuations can dampen these worth reductions. 

As Rotimi Thomas, CEO of Sunfi, explains, “Regardless of the worldwide lower in photo voltaic costs, fluctuations within the naira alternate price generally offset these advantages. Nevertheless, the rising number of photo voltaic tools in Nigeria helps to supply extra worth choices.”

Versatile financing choices, reminiscent of microloans, pay-as-you-go methods, and partnerships with photo voltaic corporations, are more and more being supplied to assist Nigerians overcome the monetary hurdle. Moreover, authorities incentives and subsidies for renewable power adoption have gotten extra mentioned, though implementation has been sluggish.

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