Rising electricity tariffs and the increasing cost of running petrol and diesel generators are driving more Nigerian households and businesses to consider solar power as an alternative source of electricity, renewable energy company, Folivision Limited, has said.
The Lagos-based company said it had recorded growing interest in solar and inverter installations as consumers seek to reduce their exposure to rising grid electricity and fuel costs.
The development follows changes in Nigeria’s electricity pricing structure since the Nigerian Electricity Regulatory Commission (NERC) introduced its service-based tariff regime in April 2024.
Customers on Band A feeders, according to the company, have seen electricity tariffs rise from about N66 per kilowatt-hour to between N209 and N225 per kilowatt-hour, increasing the cost of grid power for eligible customers.
Folivision’s Chief Executive Officer, Folarin Ajumobi, said the combination of higher electricity tariffs and generator costs had altered the economics of household and business energy consumption.
“Access to clean, reliable power should not be a privilege in Nigeria. Every home and business we connect to solar is one less dependent on expensive fuel and an unstable grid,” he said.
Ajumobi added that the changing cost of electricity had made solar power increasingly relevant as a means of managing energy expenditure.
Founded in 2022, Folivision provides solar energy services to residential, commercial and industrial customers, including energy audits, system design, installation, monitoring and maintenance.
The company said its projects range from residential installations to commercial systems exceeding 50 kilowatts-peak, with projects covering sectors including estates, healthcare facilities, schools, retail businesses and cold-storage operations.
It said its installations use solar panels, hybrid inverters and lithium iron phosphate (LiFePO4) battery systems, while its engineering teams include professionals with COREN, NEMSA and health, safety and environment certifications.
The company has also introduced financing arrangements intended to address the high upfront cost associated with solar installations. These include Lease-to-Own and Buy Now Pay Later options, under which customers can spread payments over time.
For commercial customers, Folivision offers a Solar as a Service model under which it installs and maintains the system while the customer pays for the electricity supplied.
Ajumobi said the model was designed to help businesses reduce the capital and technical requirements associated with transitioning to solar.
“The businesses we work with are not just looking for clean energy, they are looking to protect their margins,” he said.
“When a clinic can keep its refrigeration running, or a supermarket can keep its freezers cold without burning diesel all day, that is real money saved and real risk removed.”
The company said its interest in the commercial market was driven partly by the high cost of diesel-powered generation for businesses that require uninterrupted electricity, particularly healthcare, retail and cold-chain operators.
Folivision said it plans to expand its operations beyond Lagos and increase access to its financing options as demand for alternative power sources grows.
It also offers prospective customers energy assessments intended to determine their electricity consumption and estimate potential savings before installation.
The company said its broader objective was to contribute to the adoption of renewable energy and reduce dependence on conventional grid and generator power.