Harnessing Nigeria's off-grid solar power

As Nigeria grapples with the challenge of providing reliable on-grid power supply, the adoption of off-grid solar solutions is on the rise among both corporate and retail users. Kunle Odebunmi and Femi Adeyemo, the co-founders of Arnergy, a company providing solar solutions, recently shared insights on the growth of off-grid solar solutions in the country during an interview with CNBC Africa. The discussion highlighted the increasing demand for alternative energy sources in Nigeria, driven by issues such as inconsistent gas supply and high costs of traditional power sources like diesel generators. Odebumi and Adeyemo emphasized the economic benefits of solar energy, with savings of up to 40% compared to diesel, making it a more cost-effective option for small and medium-sized enterprises (SMEs). One key innovation that Arnergy has introduced is the commoditization of solar power, allowing customers to pay for installations over time instead of a large upfront payment. This financing model has made solar energy more accessible to businesses and households, with the added advantage of ownership after a set period of payment. The support of institutions like the Bank of Industry and private equity investors has further boosted the scalability of off-grid solar solutions in Nigeria. The interview also touched on the potential for growth in the renewable energy sector, with opportunities for retail chains, residential areas, and government projects. Arnergy's success story with a retail chain pilot project demonstrated the viability of solar energy for businesses, paving the way for expansion to more locations. The co-founders emphasized the importance of policy frameworks and government support in driving the adoption of renewable energy solutions. Despite challenges, such as the need for more comprehensive policies and awareness, the interviewees expressed optimism about the future of off-grid solar solutions in Nigeria. Odebumi and Adeyemo highlighted the role of off-grid solar solutions in powering SMEs and contributing to sustainable business operations. They also underscored the potential for individuals to invest in the renewable energy sector, with opportunities for partnerships and business development in the growing market. The conversation concluded with a reflection on the entrepreneurship and innovation driving the renewable energy space in Nigeria, pointing towards a brighter and more sustainable future powered by off-grid solar solutions.