As of 2024, Nigeria’s total installed solar power capacity is 112 MW.⁵

• Nigeria aims to have solar energy account for 19% of its electricity generation mix by 2030.
• This goal is part of the country’s „30-30-30“ target, which seeks to achieve 30 GW of grid-connected capacity, with at least 30% coming from renewable sources by 2030.⁶

Solar ⁷

The Levelized Cost of Electricity (LCOE) from a photovoltaic (PV) system ranges between $0.387 and $0.475 per kilowatt hour

• Diesel generators ²

In comparison, the LCOE for a diesel generator is $0.947 per kilowatt hour,

• Gasoline

While for a glass-covered kerosene lamp, it is $0.559 per kilowatt hour.

No recent data is available for following source but in 2017,

• Coal ⁸

In terms of Levelized Cost of Electricity (LCOE), generating electricity with coal averages USD 0.10 per kilowatt hour.

⁹

Exact number of hours are not available but following information is given;¹⁰

• In 2023, a survey conducted in Nigeria revealed that most respondents did not have electricity for the full 24 hours each day.
• Only one percent of participants reported having power throughout the entire day.
• Additionally, 68 percent of respondents reported receiving electricity for an average of one to nine hours daily, while approximately five percent indicated they had no electricity at all.
• In Nigeria, only 41.1% of rural areas have access to the electricity grid. Of these, most are under-electrified, receiving less than 12 hours of electricity per day.

Current installation ¹¹

As of July 2024, about 500,000 households in Nigeria have solar home systems

Projected installations ¹²¹⁶

• Nigeria plans to distribute 30,000 Solar Home Systems across the six geopolitical zones, especially targeting rural communities in coming year.
• The Nigeria Electrification Project (NEP) plans to support the development of 1,200 mini-grids benefiting 200,000 households.

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Total Number of Current Solar Farms: 5 to 7 farms

Total Number of Projected Solar Farms: Likely hundreds

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Current Market Demand:

• Nigeria has a significant unmet demand for electricity, with nearly 50% of the population lacking access to reliable grid power.
• As a result, many households and businesses rely on small-scale generators, which are costly, inefficient, and polluting.
• Nigerians and businesses currently spend about $14 billion annually on inefficient energy generation.
• The market demand for off-grid solutions including mini-grids and solar home systems, is estimated at $9.2 billion per year.
• With over 10-15 GW of energy needs being met by small-scale generators, there is already a strong demand for affordable and reliable off-grid solar solutions.

Future Market Demand:

• The potential for off-grid solar solutions in Nigeria is vast. By 2023, it is estimated that 10,000 mini-grids of 100 kW each will be installed, which still only meet 30% of the anticipated energy will demand.
• There is also potential for scaling solar home systems, with millions of Nigerians, particularly in rural areas, willing to switch to more reliable and affordable alternatives.
• The Nigeria Electrification Project (NEP) plans to support the development of 1,200 mini-grids, benefiting 200,000 households and 50,000 businesses, indicating continued strong demand for solar energy solutions in the years to come.

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Current On-Grid Solar Panel Potential in Nigeria:

• This capacity comes from a range of smaller-scale on-grid solar installations at universities and commercial facilities such as the Federal University of Agriculture, Makurdi (3.5 MW) and Tulip Cocoa Processing Ltd. (2.35 MW).
• Despite Nigeria’s high solar irradiance, grid infrastructure and policy issues have limited the full potential of solar energy development.
• Current solar projects contribute to addressing energy poverty, but significant hurdles, including inadequate grid infrastructure and financing issues, remain.

Future On-Grid Solar Panel Potential in Nigeria:

• Nigeria’s future potential is based on several large-scale solar projects planned or under development. Projects like the Argungu Solar PV Park (5,600 MW, expected 2027) and Jigawa Solar PV Park (1,000 MW, expected 2025) represent transformative opportunities to boost the country’s solar capacity.
• However, policy uncertainty, issues with feed-in tariffs, and lack of lender trust in the grid have delayed solar investments.
• Additionally, the government’s goal to generate 9 GW from renewables by 2030, including 5 GW of solar, is ambitious, but will require significant infrastructure upgrades, favorable policies, and improved financing mechanisms to ensure success.

A Solar Photovoltaic Installer working in Nigeria will typically earn around $5,300 USD per year, with salaries ranging from about $2,500 USD to $8,000 USD.¹⁹

The current population of Nigeria is 233,665,496 ²⁰

Estimate for Factory Rent

Monthly Average Warehouse Rental Cost ²¹

The average price of renting warehouses in Nigeria is approximately $35,000 USD per year. Prices vary based on location, size, and features, ranging from about $2,200 USD to $750,000 USD per year.

Key Components of Administrative Costs

Salaries and Wages: ¹⁹

A Solar Photovoltaic Installer working in Nigeria will typically earn around $5,300 USD per year, with salaries ranging from about $2,500 USD to $8,000 USD.

Business Electricity Price ⁴

Industrial electricity is priced at approximately 0.026 USD per kilowatt-hour.

Monthly Rents for Office Space ²²

• Office space for rent in Nigeria starting at approximately $160 USD to $630 USD per person per month.
• These rates are based for a 24-month contract.

Electricity Generation ²³

Nigeria’s power generation is predominantly from natural gas and hydroelectric power plants, with natural gas being the primary source:

• Natural Gas: In 2023, natural gas contributed approximately 79.5% of Nigeria’s electricity generation. Nigeria holds the largest natural gas reserves in Africa and is among the top countries globally for proved reserves.
• Hydroelectric Power: In 2023, hydroelectric power accounted for around 20.4% of the country’s power production.
• Other Sources: The remaining portion of Nigeria’s power generation comes from solar, wind, and other sources like diesel and Heavy Fuel Oil (HFO).

 Transmission & Distribution ²⁴

• Nigeria’s transmission network consists of 330 kV and 132 kV circuits and substations.
• The Transmission Company of Nigeria (TCN) oversees the management of the transmission network in Nigeria. It is a government-owned and operated entity.

 Energy Access ²⁵

• In 2022, approximately 61% of Nigeria’s population had access to electricity.
• The majority of those without electricity are concentrated in the northern regions of the country, with rural areas experiencing the highest percentage of people lacking access.

Energy Exports ²⁶

• In the first quarter of 2024, Nigeria exported approximately $39 million worth of electricity to its West African neighbors, including Benin, Niger, and Togo.
• For the entire year of 2022, Nigeria’s total electricity exports were valued at $50.98 million.

In Nigeria, solar panel regulations are overseen by various authorities and frameworks to ensure effective and sustainable development in the renewable energy sector:²⁷

NERC Regulations: The Nigerian Electricity Regulatory Commission (NERC) governs aspects of power generation, transmission, distribution, and trading. It has specific regulations related to renewable energy, including:

• Feed-in Tariff (FiT) Regulation 2015: This regulation outlines the terms for purchasing and selling electricity generated from renewable sources. It includes tariff rates, contract durations, eligibility criteria, and other obligations for renewable power producers.
• Power Purchase Agreements (PPAs): NERC’s regulations on PPAs cover the agreements between power producers and buyers, setting the terms for electricity sales from renewable energy projects.
• Grid Connection Requirements: These requirements specify the conditions for connecting renewable energy systems to the national grid.

Renewable Energy Policy Guidelines 2006: Issued by the Federal Ministry of Power, this policy aims to ensure a reliable electricity supply and guides power sector projects, including those for generation, transmission, and distribution. It promotes the establishment of a competitive private sector in the electric power industry.

Environmental Impact Assessment (EIA) Act: This act mandates that renewable energy projects undergo environmental impact assessments. The assessments are crucial for identifying and mitigating potential environmental and social impacts, ensuring that projects meet environmental and sustainability standards.

In Nigeria, several subsidies and initiatives are in place to support solar panels production and the broader renewable energy sector:²⁷

Subsidies and Incentives:

1. Customs Duty Exemptions: Imported equipment and materials used in renewable energy projects enjoy a two-year exemption from customs duties, helping to lower the initial costs of such projects.
2. Tax Holidays for Manufacturers: Manufacturers of renewable energy equipment benefit from a five-year tax holiday starting from the beginning of their manufacturing activities. This reduces their tax burden in the initial years of operation.
3. Tax Holidays on Dividend Incomes: Investments in domestic renewable energy projects receive a five-year tax holiday on dividend incomes, incentivizing investment in the sector.
4. Soft Loans and Low-Interest Loans: The Power Sector Development Fund offers soft and low-interest loans specifically for renewable energy projects, facilitating access to affordable financing.
5. Pioneer Status Incentive: Under the Industrial Development (Income Tax Relief) Act of 1971, companies involved in power generation, including renewable energy, transmission, and distribution, are eligible for a tax holiday. This provides relief from corporate income tax for an initial three years, with the possibility of extension for up to two additional years.
6. Electricity Act, 2023: This act mandates the Ministry of Finance to introduce tax incentives to promote and facilitate renewable energy generation and consumption.

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Current Solar Projects:

Federal University of Agriculture, Makurdi, Benue, Nigeria

• Location: Federal University of Agriculture Makurdi Solar PV Park.
• Capacity: 8.25 MW
• Details: This ground-mounted solar project, owned by Nigeria’s Ministry of Power, was commissioned in October 2020. Sterling & Wilson Nigeria was the engineering procurement contractor responsible for the project.

Bayero University, Kano

• Location: Kano, Nigeria
• Capacity: 7.1 MW
• Details: This approximately USD 7.27 off-grid solar PV-hybrid plant consists of 10,680 solar panels spread over 2 hectares. It was executed by the Rural Electrification Agency (REA) under the Energizing Education Program, with METKA West Africa Ltd as the EPC contractor.

Tulip Cocoa Processing Ltd.

• Location: Ijebu Mushin, Ogun State, Nigeria
• Capacity: 2.35 MW
• Details: An off-grid solar PV-hybrid plant featuring 7,192 solar panels. Dutch company Alfen BV sponsored the project, with SolarCentury Ltd as the EPC contractor. Tulip Cocoa Processing Ltd is a subsidiary of Theobroma B.V.

Future Solar Projects:

Argungu Solar PV Park

• Location: Argungu, Nigeria
• Capacity: 5,600 MW (expected 2027)
• Details: Planned to be one of the largest solar parks in Nigeria, this project aims to significantly increase the country’s solar energy capacity and provide a substantial boost to its renewable energy sector.

Jigawa Solar PV Park

• Location: Jigawa, Nigeria
• Capacity: 1,000 MW (expected 2025)
• Details: This large-scale solar park is designed to enhance energy availability in Jigawa, aiming to meet growing energy demands and contribute to the national renewable energy targets.

Gezhouba Lagos Solar PV Park

• Location: Lagos, Nigeria
• Capacity: 360 MW (expected 2026)
• Details: This future project will add significant solar capacity to Lagos, helping address energy shortages and supporting the city’s transition to more sustainable energy sources.

Company Name: Gennex Technologies

Location: Plot 25, Adebisi Ogunnuyi Crescent, off Oladimeji Alo Street, Ikate, Lekki, Lagos, Nigeria
Website: https://gennextechnologies.com/

Products:

• Gennex Technologies offers a range of solar products including solar panels, hybrid inverters, deep-cycle batteries, MPPT charger controllers, online UPS systems, rechargeable fans with solar panels, multi-functional power gateways, solar street lights, rechargeable bulbs, LED bulbs, MC4 connectors, and various installation accessories.

Services:

• Sales and Distribution of Solar Products
• On-grid/Off-grid Backup Solutions
• Solar System Design, Execution, Installation, and Maintenance
• Custom Home or Residential Solar Solutions
• Business and Commercial Solar Solutions
• Solar Maintenance Services

Company Name: Solynta Energy Limited

Location: 1B Etim Iyang Close, Off Etim Iyang Crescent, Victoria Island, Lagos, Nigeria
Website: https://solyntaenergy.com/

Products:

• Solar Panels
• Smart Inverters
• Solar Power Systems

Services:

• Energy Assessment
• Installation of Solar Systems
• Subscription to Power Credits via SMS

Company Name: Madecore Solar

Location: Block A, 2nd Floor, Suite 21, Alausa Shopping Mall, Ikeja, Lagos, Nigeria
Website: https://madecoresolar.com/

Products:

• Solar Storage Systems
• Solar Panels

Services:

• Customised Solar Design
• Energy Audits
• Site Surveys
• Installation
• After Sales Support (including training, maintenance, and repair)
• Solar Storage for Homes
• Solar Solutions for Server Rooms, Shopping Malls, Schools, Businesses, and Transit Stations