The adoption of solar energy systems in Nigeria has been on the rise, driven by the increasing need for a reliable power supply.
With frequent power outages from the national grid, businesses and individuals, especially those working remotely, are turning to solar power as a dependable alternative source of electricity.
Solar energy harnesses the sun’s light and heat using technologies such as photovoltaics (PV) and solar thermal collectors to generate electricity or heat.
As a clean and renewable resource, solar power helps reduce greenhouse gas emissions and reliance on fossil fuels.
Solar energy growth in Africa
Africa witnessed its most significant solar energy growth in 2025, with South Africa and Nigeria emerging as key players in terms of new capacity, policy advancements, and private-sector investments, according to the Africa Market Outlook for Solar PV: 2026–2029 report by the Global Solar Council (GSC).
This growth signals a wider shift across the continent towards renewable energy as governments strive to close electricity access gaps, lessen reliance on imported fuels, and meet climate goals.
- In 2025, Africa’s solar capacity grew by 54% compared to 2024, marking the highest annual deployment on record. Eight African countries installed over 100 megawatts (MW) of solar capacity, up from just four the previous year.
- South Africa led with 1.6 gigawatts (GW) of new capacity, followed by Nigeria with 803 MW and Egypt with 500 MW. Notably, distributed systems, such as rooftop solar, mini-grids, and commercial installations, accounted for 44% of new capacity.
The report forecasts that by 2029, Africa’s solar capacity could exceed 33 GW, over six times the total capacity added in 2025.
The cost of installing solar systems in Nigeria
The cost of installing a solar energy system in Nigeria can vary greatly based on factors such as system size, battery type, inverter quality, and installation complexity.
- Small Systems (1KW-3kW): Prices range from N800,000 to N2.5 million, suitable for basic needs like lighting, fans, TVs, and phone charging.
- Medium Systems (3.5KW-5kW): These systems cost between N2.5 million and N8 million and can power devices such as fridges, ACs, and pumps.
- Larger Systems (10kW and above): These systems, which are ideal for larger homes or businesses, can cost between N10 million to N50 million or more.
Stable pricing trends
Despite rapid technological advancements, the prices of solar systems have remained relatively stable in recent months.
For instance, a Lagos resident named Daniel shared that he installed a solar system in August 2025 for N850,000, covering all his household appliances except for the fridge and security lights. He reported that the system has provided a reliable alternative to the grid.
- “The only thing I don’t use on the solar is the fridge and security halogen lights outside, but every other appliances in my house are connected to the solar electricity including the pumping machine.”
Mr. Theophilus, a solar expert, mentioned that prices have remained steady over the past six months, with some high-end products even becoming cheaper.
He highlighted that the price difference between original and substandard products is now minimal, encouraging more customers to opt for premium systems for peace of mind.
- “Nothing has really changed so far from last year. This year, prices are even reducing. Prices of the high-end products are reducing,” he told Nairametrics.
Factors affecting the cost of solar systems
Several factors influence the price of solar installations, including:
- System Size (kW): Larger systems with higher capacities will naturally cost more.
- Inverter Quality: Inverters are available in various types, such as string inverters or microinverters, with microinverters typically being more expensive but offering better performance.
- Roof Design: The angle and design of a building can impact installation complexity and, therefore, cost.
- Battery Type: There are different types of batteries, including dry cell, tubular, and lithium. Lithium batteries, being the latest technology, tend to be more expensive but offer higher efficiency and longevity.
Wale Kassim, a solar energy expert, points out that while lithium batteries are gaining popularity due to their advanced technology, other options like tubular and dry cell batteries still perform well, and their suitability depends on available space and other factors.
“There are different options of batteries, which can increase or decrease the price. We have dry cell, we have tubular, we have lithium,” says solar energy expert, Kassim, who is also the CEO of AA&O Solutions, told Nairametrics.
- “Lithium looks like a very good option now, because it’s the latest technology in the market. But that doesn’t mean that the other options are not working fine. Subject to available space, and other factors,” he added.
What you should know
Last month, the World Bank approved a $50 million investment to expand solar-powered agricultural solutions across Nigeria and five other African countries in a bid to further promote clean energy.
The funds will support the deployment of solar-powered cold rooms, refrigerators, water pumps, and grain mills, which are expected to enhance productivity, reduce post-harvest losses, and expand access to clean energy.
The project will be led by Clasp, a non-profit organization focused on energy efficiency and clean energy access.
The initiative underscores the growing importance of solar energy in Nigeria and the broader African region.
