THE RISE OF SOLAR ALTERNATIVES
In the face of unreliable electricity, individuals are switching to solar energy to light their homes
Erratic electricity from the national grid is increasingly forcing many Nigerians to rely on solar energy to power their homes and businesses. At the launch of new solar energy products in Lagos recently, the technical lead for Mission 300 in Nigeria, Dayo Olowoniyi said the country recorded more than five million new-off grid electricity connections between 2025 and now. A joint initiative by the African Development Bank (AfDB) and the World Bank, the Mission is aimed at providing electricity access to 300 million people in Africa by 2030. “The government, through a programme, a World Bank programme called DARES, provides some level of capital subsidy to companies like Sun King, which reduces the burden and the cost to Nigerians,” Olowoniyi said.
DARES, acronym for Distributed Access through Renewable Energy Scale-up, is being implemented by the Rural Electrification Agency (REA) as a key intervention supporting the deployment of solar equipment in rural and low-income communities. But besides these incentivised interventions, chronic power shortages and frequent collapses of the national grid have made the search for alternatives imperative. Individuals and businesses are switching to solar and inverter solutions, prompted largely by increasing cost of running petrol and diesel generators.
In June, the Nigerian Electricity Regulatory Commission (NERC) introduced a new framework that now allows Nigerians to sell surplus power generated from solar systems to distribution companies (DisCos). “The Regulations establish a framework that enables eligible electricity customers (Prosumers) to generate electricity from renewable energy sources, primarily solar photovoltaic systems, for their own consumption and export surplus energy to the distribution network under a Net Billing Arrangement,” the commission said. The growing interest in solar and inverter installations is accentuated by changes in Nigeria’s electricity pricing structure.
From residential solar installations on rooftops to large-scale renewable energy projects, there is a significant shift to solar, a clean and quiet source of energy. Many are increasingly adopting hybrid solar setups, leading to an explosion of demands for solar panels, batteries, and inverters. In 2025, Nigeria reportedly imported around 2.9 million solar panels from China, valued at over N435 billion. Privately installed rooftop solar panels are now regular features of many homes, offices, and many businesses. Several commercial banks now use solar to cut down on high cost of diesel and reduce dependence on generators. Indeed, many of their ATMs are powered by solar energy, with some banks also offering loans to their customers to purchase solar appliances to light up their homes and power their businesses.
Some hospitals and universities are also hooked to off-grid solar panels to power their daily activities. Many federal universities are powered by the federal government’s Energy Education Programme (EEP). The University of Maiduguri, for instance, has a massive 12 MW hybrid solar plant that also powers its teaching hospital. Even the seat of power is caught up in the solar frenzy. The Aso Rock Presidential Villa in Abuja is transitioning to solar power. Initial testing of the mini-grid system with battery started in late 2025 and is expected to be fully operational this year. The State House Medical Centre has been running on solar since May 2025.
Solar panels have become a more convenient source of electricity because of the abundance of the sun. Meanwhile, switching to solar is not cheap. The cost of installation has continued to push solar energy out of reach of millions of Nigerians. The cost of solar panels, batteries and inverters is relatively high, running from hundreds of thousands to millions of naira depending on the size. And once installed, solar systems generate electricity at little to no cost, making them a financially attractive option. But experts have warned that the solar boom should be properly managed to avoid an environmental e-waste crisis.