Are you still thinking about transitioning to Renewables? Now is the time to incorporate a plan for Renewable adoption for your business.
According to reports, it is estimated that the cost of energy from fossil fuel will increase by about 47% with Renewable Energy one of the cheapest. Though, Renewables like solar power may not initially be cheap. Yet, it does not incur fuel costs once installed, and typically come with lower operation and maintenance cost too. There is a high cost of running business with generators – 22m gasoline generators power about 26% household and 30% MSME.
The Nigerian population and country’s businesses spend around $14b (N5tn) annually on small-scale generators that are expensive (USD 0.40/kWh or NGN 200/kWh or more), of poor quality, noisy, and toxic to the environment.
Therefore, developing off-grid alternatives to complement the grid can create a $9.2b/year (N3.2tn/year) market opportunity for mini-grids, rooftops and solar home systems, which is expected to save $4.4b/year (N1.5tn /year) for Nigerian homes and businesses. Some of the reasons for the adoption of Renewables are:
- Reliable and affordable (PAYGO)
- Safer and clean environment
- Improve productivity
- Proactive solution to incessant and expected increase in electricity tariff and fuel price
- Availability and easy access to clean, durable and quality clean energy solutions
- Access to finance through any FCMB branch
- Business opportunity and anticipated revolution in
- Join global drive for sustainable environment – Achieve SDG 7
It is also important for us to look at the problems that a business can encounter when planning clean adoption:
- Lack of energy assessment before installation
- Limited access to finance and perceived high set up
- Unreliable energy systems and components
- Improper energy mix
- Knowledge gap and inadequate technical knowhow
- High energy consuming equipment and appliances
- Energy wastes, leakages and mismanagement
- Limited knowledge of govt interventions, policy,
regulations, financing options and international
This challenges can easily be resolved through FCMB's financing and technical assistance partnerships currently available.
FCMB has been at the forefront of supporting Renewable Energy initiatives in Nigeria with over NGN4Billion released to Renewable Energy Developers who have provided over 1000 homes with affordable energy solution.