Consumer View: I want to go solar, but it's expensive

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Small and medium enterprises stand to gain from Africa’s solar boom, but reality tells a different story. This week, we spotlight a cafe owner who relies heavily on a petrol-powered generator to meet his daily electricity needs. He spends around ₦55,000 ($37) monthly on petrol, alongside maintenance costs to ensure the generator operates reliably.

• Samuel Sunmade Owadokun is the owner of Samtech Cyber Cafe in Nigeria. He has a positive view of solar solutions as very reliable, but the initial cost of purchase is a major deterrent, he says.

• Fuel and maintenance costs consume about 30% of his monthly profits. This limits his ability to invest and grow the business further.

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Samuel's petrol generator is his primary energy source. In our conversation with him, he shares that he seldom experiences outages or power hiccups. Apart from the high cost of maintenance, he foresees continued use of the generator.

He is aware of solar and inverter solutions as greener and quieter alternatives. Samuel appreciates solar’s reliability and efficiency, noting that a friend in the laundry business successfully uses solar to supplement power needs. However, he has been reluctant to install and experience the benefits for his self.

Affordability is his main concern. He explains that for wider adoption of solar in businesses, it has to make sense economically for the enterprise. Flexible payment plans coupled with discounts ranging from 20 to 30 per cent, for example, he says,  would make solar investments more accessible. He believes that such financial incentives, supported by government subsidies, could greatly ease the transition to solar. Though testimonials from other solar business owners increase his confidence in purchasing a system, financing is still an issue.

According to him, if solar solutions could reduce his generator fuel costs by half, Samuel predicts a significant positive impact on his business, improving profit margins and operational efficiency. He sees solar energy not just as an option, but as a vital long-term solution to Nigeria’s chronic power challenges. Comparing with countries that enjoy stable 24/7 electricity, he highlights the potential for major productivity gains if Nigeria follows suit.

Samuel advocates for collaborative efforts between the government and solar providers to subsidise costs and promote access to solar technologies. He emphasises that relying solely on solar companies is insufficient; a joint initiative would serve public and business interests better.

Overall, he advises solar companies to focus on flexible financing options and government liaison to subsidise costs, making solar affordable to all scales of business. If these factors are addressed, he expressed readiness to adopt solar power immediately, signalling strong consumer interest once barriers are lowered.