Solar power business is potentially a multi-billion industry in Nigeria. I don’t need any fancy research to confirm this fact.If you need any proof, check out the market value of Tesla, the first big mover world-wide on solar power business.
There has been rapid development in solar power technology in recent times. This has resulted in many industry changing activities.
Firstly, prices of solar power is beginning to compete and compare reasonably with fossil-fuel powered energy source.
Secondly, big energy multinationals have begun to move into the sector. They seek to leverage their firm competencies, such as access to capital, resources, reach, to take advantage of this emerging sector.
Energy is the biggest challenge facing our country today, without a doubt. Energy poverty is responsible for the socioeconomic challenges facing Nigerians today. This include nclunemployment, infant mortality, and morbidity, amongst others. As they say, business thrives by solving societal challenge in a cost effective ways, making profit in the process.
There is no greater challenge facing us today as a nation, than power shortages.
Just in case you need convincing, I present to you 5 reasons why you should really consider entering into solar power business now.
- Increasing electricity tariff in Nigeria
In December 2015, Nigerian Electricity Regulatory Commission a new tariff structure for energy consumers.
According to statement by NERC then, “residential customer classification (R2) in Abuja Electricity Distribution Company will no longer pay N702 fixed charge every month. Their energy charge will increase by N9.60. Also, residential customers (R2 customers) in Eko and Ikeja electricity distribution areas will no longer pay N750 fixed charges. They will be getting N10 and N8 increase respectively in their energy charges. Similarly, the burden of N800 and N750 fixed charges would be lifted off the shoulders of Kaduna and Benin electricity consumers. These consumers will see an increase of N11.05 and N9.26 respectively in their energy charges,”
There is ongoing clamour for increased from energy industry stakeholders, and another increase in the tariff is not far away.
- Affordability of solar products
Solar product use to be a bit expensive in the early days of the industry, but It has since reduced considerably, with solar PV module costs falling 75 per cent since the end of 2009 and the cost of electricity from utility-scale solar PV falling 50 per cent since 2010.
- Reliability of solar power
There is no doubt that solar power is becoming increasingly reliable compared to where it was years ago, and therefore it is easier to market solar power products to electricity consumers.
There is increasing acceptability of solar power as an alternative power source. I have personally tested and can confirm that this source of power is reliable.
- Availability of sun/market:
Nigerians spend about $6 billion annually to fuel their generators. The country boasts the highest concentration of small scale generators in the world. This is unhealthy and there is growing awareness amongst Nigerians about this risk, and therefore solar energy can effectively and easily replace this product in the market place. What a big market!
- First mover advantage
The solar power market is still at its infancy, and anyone entering the sector at this time, could enjoy the so called first mover advantage, which literally means little or no competition.
Here you have it, go and explore further on how to provide solar power to Nigerians in an innovative and profitable way.
You might just become the first solar billionaire in Nigeria.
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