One of the biggest reasons to go solar is that you can eliminate or significantly reduce your electricity bill. An average Nigerian home pays between N2,000 and N10,000 every month in electricity bill and between N5,000 and N30,000 in generator fueling and servicing. This balloons to 6 figure spending at the end of the year. When you factor in the increase in tariff set to come into effect by next year in Nigeria, the cost of electricity becomes painful for most households. Installing a solar energy system in your home or office can take you out of this cycle.
You can drastically reduce your electricity bill or outright eliminate it just by going solar. Your savings with a solar system would depend on your average energy consumption and the capacity of your solar installation but the most important difference is how much you would be saving in electricity bill and generator repairs and fueling. When the new tariff hike gets implemented, cost of grid electricity will be almost double of what is obtainable today. With a solar energy system installed in your home or office, your savings will even double as well.
In many parts of the US, a system known as ‘Net metering’ is practiced whereby customers can transmit excess electricity generated from their solar panels to the grid. When they do this, they get a credit with which they can buy back energy from the grid during their solar down time, obviating the need for a storage system. This system is not yet applicable in Nigeria and therefore energy consumers who wish to go solar would require a storage system to store the excess energy generated for later use.
A house with a solar installation of sufficient capacity, would not need any grid supply during the day when there is ample sunshine, and with a good storage system, may not even need grid supply for the most part of the night or even till dawn depending on the capacity of the system, energy consumption of the house and how much was stored during the day. This would constrain demand for grid supply to days of low generation due to cloudy weather, days of extreme energy demand, and sometimes in the wee hours of the night when the battery is low.
Reducing one of your largest monthly expenses makes perfect sense for your budget. Because of the intermittent nature of solar energy, it calls for a certain level of discipline to avoid falling back to grid supply every now and then, but it makes it easier to manage your electricity spending in a very predictable manner. This is especially beneficial for those with a fixed income and businesses that seek to stabilize their expense management and forecasting.