Industry stakeholders have expressed worry about over-reliance on the importation of solar panels in Nigeria, insisting that manufacturing the components locally remains more sustainable.
International Renewable Energy Agency
Following the consistent naira depreciation, the average cost of installing solar systems in the country reportedly rose by 120 per cent to N550,000 in 2023, from N250,000 in 2022.
With epileptic electricity and the hike in the pump price of premium motor spirit (PMS) and diesel, the solar system has offered a viable alternative solution to homes and businesses.
But relying on importation means the country would be spending its scarce foreign earnings on solar, experts have said.
The total import value of solar components brought to Nigeria in the last three years is estimated at $518 million.
Stakeholders are banking on the opening of the Auxano solar panel factory in Lagos, which is expected to provide about 1,000 megawatts of electricity, for local sourcing.
The fully automated PV module production plant with a capacity of 100 megawatts (MW) yearly has an innovative energy concept with over 141KWp of installed solar energy systems to offer renewable power solutions nationwide.
The shell-funded investment is expected to play a vital role in its efforts to reduce Nigeria’s reliance on imported energy components and increase the country’s capacity for renewable energy production.
The first privately-owned solar assembly factory is being seen as a milestone for the promotion of local manufacturing within the Nigerian renewable energy sector.
With Nigeria’s growing population and increasing energy demand, investing in renewable energy sources like solar power is vital to achieving the government’s energy goals and reducing the country’s carbon footprint, experts have said.
Chief Executive Officer, All On, Caroline Eboumbo, said the vision of the company is to help the sector reduce the reliance on the importation of the components, and equipment required to successfully produce and install solar energy systems.
“This factory portends the possibilities of changing the game for energy access in Nigeria and Africa. The Auxano plant is expected to produce 150 panels daily, 3,000 panels monthly and about 72,000 panels yearly. These numbers will ensure that the wait time for imported panels is drastically reduced,” she said.
She added that All On investment in the factory aligns with its commitment to inspiring other stakeholders, investors and government to localise the solar supply chain, drive affordability and increase the accessibility of solar products.
CEO and co-founder Auxano Solar, Chuks Umezulora, said the focus is to penetrate the Nigerian market before moving towards exporting solar PV to neighbouring countries.
Country Chair of Shell, Osagie Okubor said the multinational company is poised in helping energy-poor communities in Nigeria gain access to energy by unlocking potential off-grid clean energy solutions.
On his part, the Managing Director of the Rural Electrification Agency (REA), Salihijo Ahmad, said a key strategy in ensuring the security of supply of renewable energy equipment for project deployment, while also fostering local economic growth and providing decent employment opportunities for Nigerians is by developing local manufacturing capacity.
