Solar PV systems to eliminate or reduce the use of diesel generators at no additional cost: A case study of Lagos, Nigeria

Abstract

Access to electricity has been linked to improved livelihood, education, health, economic growth and overall poverty reduction. Yet, most people living without electricity or with unreliable electricity access are in Sub-Saharan Africa and South Asia. Whilst the largest economy in Africa, Nigeria suffers from severe power outages, forcing many residents to seek self-generation options. By far the most adopted option has been diesel generators which have a relatively low initial investment cost but carry health and environmental risks. Solar photovoltaic systems are a viable alternative, but the higher initial investment is a barrier for many Nigerians. This paper addresses making cleaner electricity through solar PV more attainable, increasing access to more reliable power, and reducing or eliminating the use of diesel generators. It proposes a pathway for securing residential solar PV systems at no additional cost through fuel savings and effective policy. Leveraging real data from a monitoring campaign in Lagos, the commercial hub of Nigeria, results show an opportunity to reduce or eliminate the use of diesel generators. Furthermore, financial analysis of the home solar PV option shows a cost savings of 60–65% over the project life compared to the traditional use of diesel generators for backup power generation.