On Wednesday, October 4, Arnergy Solar held a stakeholder workshop for both the renewable energy industry and the real estate sector to identify points for collaboration in order to deepen solar penetration in existing and developing real estate in the country.
The event provided a platform for insightful discussions on critical aspects necessary for the success of the renewable energy and real estate sectors.
Panelists emphasized the importance of factors such as cost, funding accessibility for both developers and end-users, collaboration, and policy development.
These factors, when duly addressed, are believed to play a pivotal role in propelling the sectors towards their set objectives.
This progress will, in turn, significantly contribute to global sustainability goals and support the ongoing transition to cleaner and more sustainable forms of energy.
In the wake of the workshop, Nairametrics had an enlightening conversation with Femi Adeyemo, the Chief Executive Officer of Arnergy Solar, delving deeper into the potential collaboration between these vital sectors.
These are excerpts from the conversation…
NAIRAMETRICS: As a solar energy company, why are you interested/focused on the Nigerian real estate sector?
Femi Adeyemo: We believe that we need to enable several verticals of the industry. Prior to this time, we have done a lot in the healthcare space like hospitals, diagnostic centers, pharmacy outlets and other players.
We have also done a lot in the educational space and also hospitality. We have powered several residential homes, but we are at a point in the journey of our nation where its clear that we cannot continue to rely only on fossil fuels (diesel, petrol) to power estates.
Diesel is over N1000 per liter, petrol is N615 per liter, following the subsidy removal and this means that the real estate space in recent times, has been actively looking for solutions.
This is why we believe that there is no better time than now for us to put together a stakeholder dialogue like this to see how Arnergy and by extension, the renewable energy sector can collaborate with the real estate sector.
That is why we have identified a few of the top developers in Nigeria that will be coming today and I am here to learn and see what we need to do to support or collaborate with real estate developers, so that for new estates that they will be building, we can have co-design solutions.
We are targeting existing developments across the country as well. This is to prevent us from developing and pushing products that do not meet the needs or price range that residents would want to pay.
NAIRAMETRICS: Many Nigerians are still in doubt about solar capacity. In your experience, how capable are solar installations to power everything within homes and businesses?
Femi Adeyemo: In the renewable energy space, there are estates that are being powered bysolar. Arnergy has the experience of setting up solar installations in some 12-bedroom mansions in Ikoyi, Banana Island, where there are water heaters, air conditioners and other heavy appliances.
Sometimes these installations go beyond 100-kilowatt capacity. Solar can power the entire city of Abuja, of course we can integrate with grid scale battery storage systems, which means that if solar is powering the entire city of Abuja, the storage system, comprising of battery systems, which will act as a substitute for the sun when it becomes dark.
Mind you, it is not a case of price or cost, is more of a case of distribution and collaboration.
We are at a pivotal point where in Nigeria when it comes to renewables given what has happened with petrol subsidy removal, grid prices the way they are in the country, Nigerians will see opportunities to be able to pay on a weekly basis as things are going, there will even be deployment where people will be able to pay per kilowatt hour just as they pay for the energy on the grid.
That is why I said it is all about distribution and collaboration players in the industry coming together to be able to bring these solutions to people at an affordable rate.
The best way to do that is reducing the cost as much as possible. Historically, a lot of people have always wanted to own their solar solutions, but do you really need to own?
If you are able to pay for it as they pay for the grid power, why not?
NAIRAMETRICS: Looking at this potential collaboration with the real estate sector, what set targets do you have?
Femi Adeyemo: Our goal is straightforward: fostering a mutually beneficial collaboration for all parties involved. In essence, we envision a scenario where Arnergy, real estate developers, and homeowners all experience substantial gains.
Our target is to achieve this win-win-win outcome by ensuring that solar solutions are seamlessly integrated into the roofs of several large estates, at the latest by Q1/2024.
We are specifically targeting estates comprising a minimum of 100 units, where each and every roof will be equipped with solar panels.
This approach provides an assurance of sustainable energy supply and sets the stage for potentially transformative developments in the future.
It signifies the initiation of a promising journey toward a cleaner, more sustainable energy future, with tangible benefits for all stakeholders.
NAIRAMETRICS: Why are you meeting real estate developers in Abuja not Lagos?
Femi Adeyemo: Arnergy Solar’s main office is situated in Lagos, but our strategic expansion into Abuja was a well-considered decision.
The city presents an abundance of installation opportunities, making it highly conducive for solar energy harnessing.
The advantageous aspect lies in the fact that, for every square meter of solar panel adorning a roof in Abuja, we can significantly augment energy generation.
Moreover, Abuja is experiencing a remarkable surge in real estate development, making it an ideal location for us to extend our services.
By establishing a presence in Abuja, we aim to send a strong message to the industry: the solar energy sector is not only here to stay but is ready for fruitful collaboration and sustained growth.
Our foray into Abuja signifies our dedication to driving sustainable energy solutions and supporting the burgeoning real estate sector.
We intend to forge strong partnerships and contribute our expertise to the city’s development, showcasing the immense potential of solar energy in powering progress and fostering a sustainable future.
Together, we can illuminate pathways to a greener and more prosperous tomorrow.
NAIRAMETRICS: Do you need government support?
Femi Adeyemo: Every business and sector relies on government support, particularly in creating an enabling environment for business operations.
This entails facilitating importation of essential inputs, a vital component for various industries. We strongly advocate for maximizing local production wherever feasible.
However, we acknowledge that certain products need to be imported to ensure a smooth flow of operations within the country.
Over the years, the government has demonstrated its commitment to supporting businesses, and we urge them to maintain this dedication, especially toward our sector.
This support is crucial, as a significant number of Nigerian businesses are increasingly shifting their focus to this sector.
This shift is driven by the escalating costs associated with running petrol-powered generators, making alternatives more attractive.
In order to sustain and boost our industry, we encourage continued collaboration between the private sector and the government.
This partnership is essential for creating a conducive environment that fosters growth, innovation, and competitiveness.
Moreover, aligning policies to promote local manufacturing while allowing for necessary imports is pivotal in fortifying our industry and ultimately, the nation’s economic landscape.
NAIRAMETRICS: Who are the real estate partners you are looking to collaborate with?
Femi Adeyemo: We are actively engaged in collaborative efforts with key industry players such as Modern Shelter, Urban Shelter, Cosgrove, and Brains and Hammers.
Notably, our partnership with the Federal Housing Authority (FHA) holds significant promise, and we eagerly anticipate forthcoming announcements, given our strategic positioning within the sector.
This collaboration is founded on a shared vision of advancing the real estate industry, ensuring its growth and vitality.
By joining forces with these reputable organizations, we aim to collectively contribute to the development of sustainable housing solutions, meeting the evolving needs of our communities.
In the weeks ahead, we foresee exciting announcements that will underscore the progress and strides we are making in this collaborative venture.
These announcements will shed light on our joint initiatives and the positive impact they are poised to make in the real estate landscape, fulfilling our commitment to providing quality housing and fostering community well-being.
Stay tuned for updates that will reflect our dedication to innovation, excellence, and meaningful transformation within the sector.
The future of electrify and power in Nigeria is off-grid renewable energy, which is wind and solar. Large sized estates of 100 residences and above in Lagos and Abuja should be mandated to leave the national grid in the next 2 years. The residents are also usually the ones who can pay up to N200 per kilowatt hour (kWh).