The Solar Power Solution

The Solar Power Solution

Solar Power for Homes

Having pointed out some of the numerous problems in the Electricity problem industry in the previous post on this blog, it will do a lot of good to proffer solutions before we delve into more problems.

Solar Powered Home

Recall, I mentioned that over 60% of Nigerian households generate electricity using privately owned generators, and this is on continuous increase. To run a 2.5kVA generator continuously for 24 hours every day for one year, one will need to spend about ₦751,371.43 on petrol; furthermore if we include the capital expenditure and maintenance costs we will arrive at about ₦951,371.43. The lifespan of combustion based engines such generators is five years; consequently, running this generator continuously for five years, the owner will spend   about ₦4,156,857.14.

Now let us look at an alternative, solar power. Solar panels average cost is about ₦600 for 1VA (1W assuming power factor is 1). A solar power system comprises of the solar panels, the inverter for converting from DC to AC and the batteries for storage. The solar panels convert the light energy from the sun during the day to electrical energy in DC form. The inverter system has the inverter that converts DC electricity to AC electricity and the battery charger used to charge the batteries. The batteries are used to store energy during the day and the inverter will revert to the stored energy in the batteries for supply of power in the night. It worthy of note to mention that solar panel efficiency drop by about  1% or less  per year; thus, after twenty years solar panels can still be 80% efficient.

Below is a cost comparison between a 2.5kVA petrol generator and 2.5kVA solar power system courtesy of Yellowfin Energy Solutions LTD.

Look at the table above, we can deduce that solar has a very great cost advantage over petrol generators; 32% in savings over 5 years, 46% in savings over 10 years and 53% in savings over twenty years.  The only challenge here for solar power is initial starting cost and this is double the annual cost for petrol generator.

Thus, the pertinent issues here are starting capital, and repayment plan from the consumer. Most people I have informed of this idea are sceptical of such huge capital and the entrepreneurs are sceptical about making profits and securing capital investments.

Solar Power for Businesses

We have seen the possibilities of solar power for homes, and without much further ado, let us delve into the business aspect.

Recall, that we mention about a cybercafé operating for 16 hours a day and it is powered by a 15kVA generator. We will compare generator and the solar power alternative. This cybercafé is assumed to operate every day expect Sundays; this implies that it will operate for 313 days in a year.

The beauty of this solution is that it is less expensive in the long run, the solar power can last for more than 16 hours a day and it can as well be operated on Sunday; thus, giving it a greater advantage.

This can further be applied to other industries such as banks, manufacturers, shopping malls, etc. 

These solutions were provided by Yellowfin Energy Solution LTD.