In the face of Nigeria’s ongoing economic challenges, particularly the volatility of the naira, one industry is proving resilient and transformative: solar energy.
Over the past 15 years, the cost of solar power has plummeted, making renewable energy an increasingly viable and affordable option for businesses and households.
This was the central theme at a high-level media parley hosted by Royal Power and Energy Limited, a leading provider of backup power and renewable energy solutions in Nigeria, held in Lagos on Tuesday.
Adewale Odugbesan, chief executive officer of Royal Power and Energy Limited, highlighted the remarkable decline in the cost of solar technology, noting that global prices have fallen significantly despite the naira’s instability.
“In 2010, solar panels cost around $3 per watt; today, the prices have dropped drastically. This means that despite the devaluation of the naira, the affordability of solar energy has significantly improved, making it a viable alternative to traditional power sources,” Odugbesan stated.
The discussions emphasised how the sharp reduction in solar technology costs has outpaced the rate of naira devaluation, creating an unprecedented opportunity for Nigerians to invest in renewable energy.
Odugbesan pointed out that the per-watt cost of running on solar is now significantly cheaper than relying on diesel generators or electricity from distribution companies.
Read also: Solar mini-grids to receive $600 subsidy each under Nigeria-DARES
Government policies driving solar adoption
Beyond the cost advantages, Odugbesan praised the Nigerian government’s recent policy adjustments aimed at encouraging solar adoption.
“The government has structured incentives such as relatively low import duties on solar components—excluding batteries—which are essential in sustaining the momentum of the sector,” he explained.
A key regulatory shift discussed at the event was the removal of the mandatory grid connection requirement for businesses generating over 1 megawatt of solar power.
Previously, companies exceeding this threshold were required to feed power into the national grid, creating investment bottlenecks.
“With this policy change, businesses can now distribute power within their states independently, eliminating a significant barrier to investment and improving energy access across Nigeria,” Odugbesan added.
While the outlook for solar energy adoption remains promising, Odugbesan acknowledged macroeconomic challenges such as exchange rate volatility and workforce migration, which could slow progress if left unaddressed.
He commended the recent performance of the naira against the dollar, noting that the currency has shown signs of stability and improvement over the last few months.
“Businesses need a stable, predictable economy to plan long-term investments. While the volatility of the naira and shifting economic policies have posed challenges, the recent stability and improvement in the currency’s value are encouraging signs. Additionally, we must address the issue of talent migration, which is draining critical expertise from the sector,” he emphasized.
A path forward
The event also explored energy efficiency strategies, the need for stronger public-private partnerships to bridge infrastructure gaps, and Royal Power and Energy Limited’s ongoing commitment to leveraging advanced technology to enhance power accessibility in Nigeria.
The discussions concluded with an interactive Q&A session with journalists, reinforcing Royal Power’s role as a thought leader in the renewable energy space and its dedication to driving Nigeria’s transition to affordable, sustainable power solutions.
As Nigeria continues to navigate economic uncertainties, the solar energy sector stands out as a shining example of resilience and innovation. With supportive government policies, falling technology costs, and the commitment of industry leaders like Royal Power and Energy Limited, the future of renewable energy in Nigeria looks brighter than ever.
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