How are the Nigerian consumers and market responding to solar adoption?

Solar energy has been utilised in Nigeria for several decades, with initial applications dating back to the 1980s. Notably, Nigeria Telecommunications (NITEL) began employing solar photovoltaic (PV) systems in the early 1990s to power repeater stations. More widespread adoption and increased capacity have been observed more recently, particularly over the last decade. Solar energy usage in Nigeria started gaining momentum in 2014 and has steadily increased each year, especially following the removal of fuel subsidies in 2023 and the introduction of Band A tariffs in 2024, which have made solar energy more mainstream.

“With only about 55 percent of the population connected to the national grid and frequent blackouts, many households and small businesses seek reliable, independent energy sources.”

The market for solar home systems (SHS) is experiencing significant growth, as an increasing number of businesses are transitioning to solar energy to effectively minimise operational costs and align with their Sustainable Development Goals (SDGs). This shift is driven by the need for sustainable energy solutions that not only lower expenses but also contribute to environmental conservation.

E-commerce platforms, such as Jumia and Konga, are playing a crucial role in enhancing access to a diverse range of small-scale solar products, particularly in urban centres where demand is high. These platforms offer an array of solar products, from solar panels and energy-efficient lights to complete solar kits, making it easier for consumers to find and purchase these solutions online.

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There is no doubt that Nigerians are fully embracing solar energy. This is evident from the growing number of solar panels visible on roofs as people drive by, as well as the increasing number of solar companies emerging every day.

However, despite this rise in adoption and availability, significant issues remain, particularly regarding consumers’ knowledge gaps. There is a lack of consumer education surrounding solar technology. Many buyers are unaware of product specifications and technical standards or the importance of certified installers. This lack of knowledge has led to the spread of substandard products, which undermines public trust in solar solutions. If not addressed, this knowledge gap could hinder the further adoption of solar energy in Nigeria.

Nigerian consumer behaviour: Who’s buying and why?

Nigerian consumers are driven toward solar by necessity rather than environmental concerns. With only about 55 percent of the population connected to the national grid and frequent blackouts, many households and small businesses seek reliable, independent energy sources. Solar is seen as a means to reduce dependency on expensive, polluting generators and improve energy reliability.

Affordability remains a core concern. Most consumers prioritise low-cost options, even if quality is compromised. Solving for the short term rather than the long run.

There’s a strong preference for small-scale, entry-level solar products like lamps, phone chargers, and solar fans, which consumers use to test the sector before going to full scale.

What can be done to prevent the derailment of solar adoption in Nigeria?

1. Financing as a deciding factor

● Access to flexible financing will be crucial for the adoption of solar energy. It is important to address solar financing in a way that removes it as a barrier to entry in the sector. The solution could involve partnerships with financial institutions or the availability of green financing options with minimal prerequisites. We should develop products that cater to customers’ energy needs, allowing them to start saving from day one. These products should serve as direct replacements for petrol costs or Band A tariffs. Products like Arnergy’s zero down payment solution or their lease-to-own payment plan.

● Subsidise quality solar: Work with government and development partners to provide interest-free or low-interest loans for quality solar systems.

2. Educate and build trust

● Consumer awareness campaigns: Launch national campaigns focused on the benefits of solar, quality assurance, and the dangers of counterfeit products.

● Certify installers and products: Establish a public registry of certified installers and approved solar brands to build trust and encourage accountability.

4. Improve after-sales service

Offer warranties, maintenance packages, and customer service centres to ensure long-term user satisfaction and brand loyalty.

As Nigeria’s solar market continues to grow, it is critical for all stakeholders—consumers, providers, and policymakers—to work collaboratively to ensure solar solutions remain reliable, trustworthy, and truly beneficial. Building consumer confidence, offering flexible pathways to adoption, and prioritising education will be essential to sustaining this progress.

Oghale Ariawhorai, Senior Vice President—Customer & Partner Success