For decades, the national grid has been the only affordable path to power for the average Nigerian, but it remains unreliable.
Experts have pointed out that the power crisis has constrained growth, frustrated households, and inflated business costs.
In the absence of a stable electricity supply, people have often resorted to expensive petrol and diesel-powered generators. For instance, in the bustling neighborhoods of Lagos, the hum of generators has long been the unofficial soundtrack of daily life. From corner shops to corporate towers, the steady buzz echoes one fact: Africa’s largest economy still struggles to keep the lights on.
The recurring cases of national grid collapse often plunge parts of the country into darkness. So far in 2026, Nigerians have already endured two total system collapses within four days in January, with the first plunging generation to zero megawatts. The World Bank estimates that these failures cost the economy $29 billion annually, about 2 per cent of GDP.
As the grid continues to experience failures coupled with a surge in tariffs, especially for Band A customers, there are indications that advancements in solar technology have offered a cheaper alternative for powering homes and businesses. The rising adoption of solar energy is reflected in the sights of panels mounted on rooftops and solar-powered street lights. The question many are asking is: can solar energy finally deliver the power stability Nigeria has long sought?
Recent data shared by Financial Derivatives Company (FDC) shows that electricity cost has surged from ₦220 – ₦270 per kilowatt-hour (for Band A), over 200 percent from the previous rate. However, the cost of generating power from solar and other renewable sources, such as wind, is put at around ₦85 to ₦140 per kilowatt-hour. That of a petrol/diesel generator is estimated at ₦450 – ₦900 per kilowatt-hour. This means using solar is more cost-effective than grid and petrol/diesel generators for generating electricity.
Rising Solar Adoption
Nigeria sits within the tropical sunbelt, blessed with high solar irradiation across most of its territory. From the arid north to the humid south, sunlight is abundant and consistent year-round.
Data from the Global Solar Council shows that Nigeria emerged as Africa’s second-largest solar market in 2025, installing 803 MW of new capacity during the year. This marked a 141 per cent year-on-year growth as Nigeria’s cumulative solar capacity rose from about 385 MW in 2024 to nearly 1.19 GW in 2025.
Analysts believe that this surge reflects an aggressive move by Nigerians, apparently frustrated by unreliable electricity supply, to solve their power challenges both for households and businesses.
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The data revealed that about 96 per cent (roughly 1.15GW) of the total installed capacity is off-grid, comprising private mini-grids, solar home systems, and commercial rooftops.
“The primary catalyst for the adoption of solar PV technology in Nigeria is the serious issue of energy poverty and the inconsistency of electricity supply,” Attaurrahman Ojindaram Saibasan, Senior Power Analyst at GlobalData, noted recently. “Consumers’ preference for solar PV arises from the demand for dependable power,” Saibasan added.
Experts have also noted that there has been a significant drop in solar panel prices globally and advances in battery storage in recent years, which have transformed the economics of renewable energy. They attributed the falling prices to China’s large-scale production of solar panels in recent years. According to the International Energy Agency, China controls over 80 per cent of the global solar supply chain, including nearly 95 per cent of the world’s production of solar wafers.”China has been instrumental in bringing down costs worldwide for solar PV, with multiple benefits for clean energy transitions,” IEA stated in a special report on Solar PV panel supply in 2023.
Mini-grids and standalone solar home systems are expanding access in rural communities that have never been connected to the national grid. In parts of northern Nigeria, solar panels now power water pumps, health clinics, and schools.
Speaking recently, during an inspection of a new solar hybrid project at the Federal University Lafia, the Vice Chancellor of the institution, Professor Shehu Abdul Rahman, said it has not only enabled them to enjoy a reliable power supply but also helped to drastically reduce expenses on electricity.
The plant is one of eight being built by the Federal Government across eight Nigerian federal universities, with financing from the African Development Bank Group, under Phase III of the Energising Education Programme (EEP), a component of the $200 million Nigeria Electrification Project.
Solar and Power Decentralisation
Unlike centralized gas plants that rely on complex transmission networks, solar systems can operate off-grid. This decentralization avoids some of the systemic challenges that have plagued Nigeria’s power sector for decades.
Recognising the flaws of the centralized grid, the government has been encouraging a decentralized power system both with policies and laws. The Electricity Act 2023 encourages integration of renewables into the energy mix. Through the Rural Electrification Agency (REA), the government has launched electrification programmes to deploy solar power in underserved areas. Last week, REA secured a $700,000 grant from the ECOWAS Commission to deploy solar PV systems in rural health centers and schools across the FCT, Niger, and Nasarawa states under the Regional Off-Grid Electricity Access Project (ROGEAP).
Cost of Solar
Speaking on the cost of solar installation, a renewable energy consultant, Clinton Eze, said it varies, depending on size, one’s budget, and energy needs. According to him, the size that can supply basic power for televisions, fans and charging mobile devices starts from ₦450,000. He added that some range between ₦1 million and ₦5 million.
The cost of installation has remained a barrier for many who can’t afford it at once. However, many believe that after succeeding in funding the installation, one gets the value of what has been spent over time.
“I struggled to raise ₦500,000 to buy solar last year, but today, I am reaping the benefit as I no longer rely on power authorities for electricity to do my work,” said Ernest Onah, a digital entrepreneur and data analyst.
In a video shared on X, a user said he bought solar for about ₦700,000 three years ago and has saved over ₦3 million on electricity and fuel since then.
While highlighting the decreasing cost of solar, a social media commentator and analyst, Dr. Toks Akpakomiza, said he bought some solar fence lights with a motion sensor recently to replace 12w fence light bulbs in his house and realized that the cost of procuring the solar lights was just a little higher than what he spends annually on electricity. According to him, the cost of solar lights has decreased significantly over time and will, going forward, enable him save money he spends annually on electricity bills.
Commenting on the use of solar light, another social media commentator wrote on X, “Switching to solar not only reduces your carbon footprint but also gives clear financial savings. Over just two years, the motion-sensor solar lights practically pay for themselves, and beyond that, every kWh you don’t pay for is pure savings. Definitely a win for both the wallet and the environment.”
Can solar solve Nigeria’s power crisis?
Experts have, however, cautioned against viewing solar as a silver bullet for resolving Nigeria’s power crisis.
In a chat with Pinnacle Daily, Eze said that while solar can boost access to electricity, especially in underserved areas, it is mostly not for large-scale industries.
“Solar can dramatically expand access and reduce reliance on generators, but for heavy industry, large-scale manufacturing, and national growth, Nigeria still needs a stable, upgraded grid,” Eze stated.
He stated that solar cannot, by itself, power the heavy industrial zones that a modern economy requires, but can only serve to fill the gaps created by grid instability. Highlighting other limitations, he said solar energy production dips at night and during heavy cloud cover, requiring storage solutions or hybrid systems that combine solar with gas or hydro. Battery costs, while falling, remain significant for large-scale installations, he added.
On the use of solar for mini-grid expansion, an energy professional and policy expert, Chinenye Ajayi, stressed the need for authorities to look at the commercial viability of a mini-grid in an area before approval.
Ajayi, who spoke in an interview on TVC, called on the government to look into measures that would incentivize investors to invest in mini-grid solutions. According to her, some investors feel the maximum cap stipulated in the electricity law is too small. The Electricity Act 2023 says the maximum cap for a mini-grid is 1MW.
“For some investors, 1MW is very small in terms of economic sense for their investments,” Ajayi stated.
“It might be useful to consider increasing the cap so that perhaps, there might be many more investors who might be interested in large-scale projects,” she advised.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
