Nigeria has very good solar irradiation conditions, while many companies and social institutions have long relied on diesel and petrol generators to compensate for unreliable electricity supply. Photovoltaic systems combined with existing generator-based power supply can reduce fuel consumption and energy costs. However, potential investors and local PV companies often lacked easily accessible information on technical feasibility, economic viability and qualified implementation partners.
Building on the earlier ENABLING PV Nigeria activities and the Nigerian-German initiative Let’s make solar work, the project closed a specific information and capacity gap for PV-diesel and PV-petrol hybrid applications. The project focused on two complementary instruments: the extension of an existing PV profitability tool with additional professional functions for Nigerian PV-EPC companies, and the establishment of an online information portal for potential commercial, industrial and institutional users of hybrid PV solutions.
The expanded online tool was designed to support project developers, installers and investors in assessing PV applications for self-consumption, back-up diesel or petrol hybrid systems and off-grid mini-grid solutions. It enabled users to compare the cost of solar power with generator-based electricity and to estimate key economic indicators for planned investments. The online information portal complemented the tool with basic information on PV technology, best-practice examples, profiles of qualified Nigerian PV companies and a vendor-independent hotline for first technical and economic enquiries.
During implementation, the PV calculator was launched publicly and promoted as part of the Let’s make solar work initiative. The calculator compares solar electricity costs with diesel generation costs and automatically calculates indicators such as levelised cost of electricity, payback period, equity IRR, project IRR and net present value. The project thus contributed to greater market transparency, supported Nigerian PV companies in preparing customer consultations and strengthened practical knowledge transfer between German and Nigerian solar-market actors.
Timeframe February 2018 - July 2018
Country / Region Germany, Nigeria
Project partners Solar23 GmbH; Valentin Software GmbH; eclareon GmbH; Code Wendt; German Solar Association (Bundesverband Solarwirtschaft, BSW-Solar); Renewable Energy Association of Nigeria (REAN); Identità Ltd.
Financed by Federal Ministry for Economic Affairs and Energy (BMWE), administered by the Federal Office for Economic Affairs and Export Control (BAFA)
Contact Christoph Urbschat
Further Information Let's make solar work