Cost of solar systems rises 120% to N550,000 as forex, inflation worsen

THE average cost of installing solar systems in the country has risen by 120 per cent to N550,000 in 2023, from N250,000 in 2022, due mainly to inflation and the depreciating value of the naira/dollar.

The naira exchanged for more than N800/$, weekend, a development that put additional pressure on local investors interested in importing solar solutions and other items from the global market.

However, the development has scuttled operations, especially new investments, supply, demand and impact on households, businesses and institutions economy-wide.

Situation requires new measures – Operators

In an interview with Vanguard, weekend, President, Renewable Energy and Energy Efficiency Associations Alliance, REEEAA, Prof. Magnus Onuoha, confirmed the current situation, adding that the naira should be used for all transactions in the sector.

He said: “This is why we are imploring de-risking investment institutions in the sector to ensure that these products are purchased with naira, against dollar, to guard against inflationary shocks. Infra-credit, for instance, has taken the lead.

“The average cost of installing solar systems has increased by over 100 per cent over the last 24 months because of the free fall of the naira and inflation.

”The costs of importation and logistics have also increased. For instance, a 1kva in 2022 would have been cheap at N250,000, but in today’s markets, 1kva costs between N450,000 and N550,000.”

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