The Royal Power and Energy Limited, the provider of backup power and renewable energy solutions in Nigeria, has said that as the cost of solar technology continues to decline, renewable energy is becoming a more cost-effective alternative to diesel and grid power despite the impact of naira devaluation.

Chief Executive Officer of the firm, Adewale Odugbesan, who stated this during a media parley in Lagos, said solar panel prices had dropped significantly over the years, offsetting the impact of currency fluctuations and making clean energy solutions more attractive for businesses and households.

He emphasised that while Nigeria’s economy grapples with fluctuating exchange rates, solar energy is proving resilient, noting that over the past 15 years, the per-watt cost of solar power has declined significantly, making renewable energy an increasingly viable alternative to conventional power sources.

Odugbesan said that despite the naira’s volatility, global prices had dropped significantly, saying that the sharp decline in solar technology costs has outpaced the rate of naira devaluation.creating a unique opportunity for businesses and households to invest in renewable energy solutions.

He further pointed out that the per-watt cost of solar energy is now considerably lower than the expenses associated with running diesel generators or relying on electricity from electricity distribution companies (DisCos).

The CEO said that high diesel costs and unstable grid power had pushed more Nigerians toward solar adoption, with financing options now making it easier for businesses and individuals to invest in off-grid and hybrid energy solutions.

Odugbesan, however, commended federal government’s recent policy changes designed to promote solar adoption. He highlighted the removal of the mandatory grid connection requirement for businesses generating over one megawatt of solar power, noting that the previous regulation, which compelled companies exceeding this threshold to feed power into the national grid, had created investment bottlenecks.

He said that macroeconomic challenges, such as exchange rate volatility and workforce migration, could hinder progress if not addressed.