The Chief Executive Officer of Royal Power & Energy Limited, Adewale Odugbesan, shared insights into the company’s role in the renewable energy sector, particularly solar power. Odugbesan discussed how changes in foreign exchange rates have influenced the cost of solar energy and the overall growth of the industry in Nigeria. He explained that despite fluctuations in the naira’s value, the cost of solar panels has been decreasing, making solar energy more affordable and competitive compared to traditional energy sources.
Odugbesan highlighted the positive impact of government policies on the renewable energy sector, especially regarding import tariffs. The Nigerian government has implemented reduced tariffs for solar equipment, which has encouraged more businesses to invest in renewable energy. For instance, while batteries still incur a 20% import duty, solar panels can be imported duty-free under certain conditions. This support from the government is crucial, especially when compared to the higher duties on other imports, such as vehicles, which can exceed 35%. Such measures demonstrate the government’s commitment to promoting renewable energy as a viable alternative.
When discussing the affordability of solar power, Odugbesan noted that the price of solar energy has significantly dropped over the years. When Royal Power & Energy first launched its solar department, the cost was around $3 per kilowatt-hour. Today, it has plummeted to approximately $0.10 per kilowatt-hour. In comparison, traditional grid power costs between N220 and N250 per kilowatt-hour, while diesel generators can cost around N400 to N450. This makes solar energy not only a sustainable option but also the most cost-effective choice for businesses looking to reduce their energy expenses.
For those considering solar energy for their homes, Odugbesan explained that the installation costs can vary widely based on individual energy needs. For example, a three-bedroom home could require an investment ranging from N1 million to N3 million, depending on factors such as the use of air conditioning or other electrical appliances. He emphasized that the overall cost can be tailored to each household’s specific energy requirements, allowing for flexibility in budgeting.
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Addressing concerns about solar energy affordability, Odugbesan highlighted the innovative financing options available through Royal Power & Energy. The company offers a model where they install solar systems at no upfront cost, allowing customers to pay only for the energy they consume. This pay-as-you-go approach can significantly lower the financial barrier to entry for many households and businesses. In some cases, clients have seen a return on their investment in as little as 18 months due to the savings on diesel and other energy costs.
Odugbesan also clarified the ownership structure of the solar infrastructure after the contract period. Clients can choose between two options: they can either take ownership of the system after a five-year contract or continue paying for the energy without owning the equipment. The cost per kilowatt-hour varies based on the chosen option, allowing clients to select what best fits their financial situation.
When it comes to the reliability and safety of solar installations, Odugbesan assured that Royal Power & Energy has comprehensive insurance policies in place. These policies cover damages during installation and provide protection against theft or other unforeseen events. The company is committed to ensuring that clients receive ongoing support and maintenance, with a dedicated team of field engineers available to address any issues that may arise.
Finally, Odugbesan expressed pride in the company’s extensive experience and technical expertise in the renewable energy sector. With nearly 20 years in the industry, Royal Power & Energy has built a reputation for quality service and innovative solutions. The company not only provides standalone solar installations but is also expanding into grid-type projects, which further enhances their offerings in the Nigerian energy landscape. As the demand for renewable energy continues to grow, Odugbesan is optimistic about the future of solar power in Nigeria and the role that his company will play in driving this transition.
