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Cost Of Different Sources Of Electricity In Nigeria - Science/Technology (7) - Nairaland

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Re: Cost Of Different Sources Of Electricity In Nigeria by Barcs: 10:35am On Apr 09, 2013
emiye:


Thanks for this info, the op failed to answer my question on the first page, that you have done.

Apologies. Your question slipped through the net as I had so many to deal with. Please visit our website, and all your questions will be answered. "Solnytadotcomdotng"

Please let me know if you have any more questions - again, apologies for the delayed response.

Regards

Uvie
Re: Cost Of Different Sources Of Electricity In Nigeria by magman: 10:40am On Apr 09, 2013
i cant answer everybody questions on this forum but any body that want to know anything in solar/renewable energy whether in its installation and repair should email me.. techmart147@gmail.com
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcs: 10:57am On Apr 09, 2013
oyb:

too many half truths - 5 years to replace deep cycle batteries that are used regularly, and are not installed in airconditioning that will extend their life?

then you throw in the free energy saver bulbs - do you think nigerians are hick who dont already have these in their houses - we even know the grades, sylvania (150) akt (350) philips (600) for your 20 watt energy saver compact flourescent

and how much can one do with 2kva? ironing, borehole pump, fridge, freezer? please. anyway.


Just seen this post. I'll address in turn

1. A well sized battery array of at least 12V 200AH lasts 5 years - fact. Incorrect sizing of the batteries leads to reduced lifecycle. All our systems are priced to include optimal battery sizing.

2. The majority of Nigerian households use lightbulbs between 60-100 Watts. FACT. It is for this reason that Goodluck Jonathan recently came out and encouraged Nigerians to purchase these in their droves. They average 12W each representing a significant energy saving per family. Again, this information is in the public domain. Feel free to google and verify. We provide these for free to help families reduce their carbon footprint and free up capacity to be able run more equipment if they so wish.

3. Inverters can be scaled up to handle peak loads as you know. Our standard packages will include a free upgrade to a higher capacity inverter. For example, a 2kW system will come with a 3.75 KVA inverter thrown in for free.

It seems to me that there is a lot of confusion on this thread about the difference between Energy Usage and Energy Load - these are two entirely different things, and both must be taken into account when designing a solar system for each customer. That's how you ensure 24 hours electricity - it's not a simple case of purchasing a bespoke product. Each customer must have a tailored solution. This is exactly what my engineers are trained to do.

There is no limit to the size inverter capacity you have, as I'm sure you are aware that even if you lived in a castle and required a 20 KVA Inverter, the most efficient system design is to "Stack" the inverters - that is, to use 4 * 5 KVA inverters. This is an excellent solution as it means that if for whatever reason one of them breaks down, the whole system does not stop working, at it's easily replaced.

Please visit our website if you want further information. solyntadotcomdotng.

Regards

Uvie
Re: Cost Of Different Sources Of Electricity In Nigeria by automine(m): 2:22pm On Apr 09, 2013
@Bacholder Hey bro, I absolutely share your passion and believe on this thread. However, as much as I would want to agree with u I want u to know that solar technology is still not full blown and so is most renewable technology. I'm sure you know this technology is for the future as it is yet to take over from fossil fuelled energy even worldwide the technology is still being used as secondary source. One challenge with most renewable is their size and as the renewable energy technology is evolving, engineers are looking at means of miniaturizing it to make it widely acceptable. And I think your analysis is done from a narrow perspective as there is a lot of other factors to consider. I want to believe u were once here before u moved to the UK and u know what our dwellings look like. A very large portion of the population live below the poverty line, a good number of whom live in the popular "face-me-i-face-u apartment most of which are clustered together. Tell me how a solar panel will work in this kind of situation. If need to get a solar panel of say 2KVA rating to power ur dwelling, I'm sure u know what size of panel were talking about here, it'll take a lot more space than even the owner cope with. Initial cost is another issue. Like already pointed out it will be easier for an average poor Nigerian to get like 20K to buy a gen set 4 which he needs a very small space to keep and subsequent maintenance cost is within reach than a solar panel which a space large enough that he can't afford and whose initial cost is so high.
However, I share ur believe solar technology is it; it is the future, it is clean, no pollution of any sorts but at the moment based on these factors and several others it is expensive. Perhaps there may be sometin I'm missing pls I am eager to hear it but I think our best shot in Nigeria today is Nat. gas
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcs: 3:06pm On Apr 09, 2013
automine: @Bacholder Hey bro, I absolutely share your passion and believe on this thread. However, as much as I would want to agree with u I want u to know that solar technology is still not full blown and so is most renewable technology. I'm sure you know this technology is for the future as it is yet to take over from fossil fuelled energy even worldwide the technology is still being used as secondary source. One challenge with most renewable is their size and as the renewable energy technology is evolving, engineers are looking at means of miniaturizing it to make it widely acceptable. And I think your analysis is done from a narrow perspective as there is a lot of other factors to consider. I want to believe u were once here before u moved to the UK and u know what our dwellings look like. A very large portion of the population live below the poverty line, a good number of whom live in the popular "face-me-i-face-u apartment most of which are clustered together. Tell me how a solar panel will work in this kind of situation. If need to get a solar panel of say 2KVA rating to power ur dwelling, I'm sure u know what size of panel were talking about here, it'll take a lot more space than even the owner cope with. Initial cost is another issue. Like already pointed out it will be easier for an average poor Nigerian to get like 20K to buy a gen set 4 which he needs a very small space to keep and subsequent maintenance cost is within reach than a solar panel which a space large enough that he can't afford and whose initial cost is so high.
However, I share ur believe solar technology is it; it is the future, it is clean, no pollution of any sorts but at the moment based on these factors and several others it is expensive. Perhaps there may be sometin I'm missing pls I am eager to hear it but I think our best shot in Nigeria today is Nat. gas

Thanks for your comments. I'd like to correct you on one key point. Solar is not a secondary source of energy. It is now widely used as a primary energy source in many countries such as the USA. You will note the rise of Solar City as an example of how Solar Energy is transforming the USA energy landscape. The efficiency of Solar Energy is directly related to the amount of sunshine received. The Nigerian climate is perfectly suited to widespread solar adoption.

Your point about apartment blocks is well made. Our solution is rather simple. We are selling our Products directly to the landlords, which effectively allows them to become a mini power provider by then charging their tenants for electricity provision. This is a fantastic investment for them generating great additional profits, whilst saving the tenants considerable cost compared to using generators.

To your point about Gas. All developed countries adopt a mix of energy sources to provide total energy requirements. For instance, the UK produces 9% of its total energy from various forms of renewable energy. Recent government estimates show that by 2020, 22,000MW of power will be provided by Solar Energy. To put into some context, Nigeria, with a population 3 times the size of the UK, has a TOTAL Energy output of 5,000MW. And remember, there is little sunlight in this country.

In short, the solution to Nigeria's energy problems lies in a mix of energy sources, from Fossil fuel based to renewable. Given the extreme suitability of the Nigerian climate to Solar Energy, a larger proportion of Nigeria's energy mix will be provided by Solar.

I hope that helps in some way.

Regards

Uvie
Re: Cost Of Different Sources Of Electricity In Nigeria by Nobody: 3:32pm On Apr 09, 2013
^^Pheww! Just done reading the pages. Quite enlightening I must say. I admire your tenacity. And you're so damn passionate, that's a good one. I once used an inverter, which later got damaged by the sharp practice of a rogue dealer whom I met on Nairaland. Since then I've looked out for a genuine and knowledgeable dealer to provide solution to my energy needs. My question is this, the batteries I was sold then was rated 12v * 200AH. Those batteries barely lasted 18months working at full capacity. I'm stuck at your claim of your batteries going at full capacity even for 5yrs! Is that really possible? Once again, kudos. I hope, not only to get on your sales train, but also buy from you eventually. But I'd really love to see one that is installed and working. Cheers!
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcs: 5:39pm On Apr 09, 2013
Whoopie: ^^Pheww! Just done reading the pages. Quite enlightening I must say. I admire your tenacity. And you're so damn passionate, that's a good one. I once used an inverter, which later got damaged by the sharp practice of a rogue dealer whom I met on Nairaland. Since then I've looked out for a genuine and knowledgeable dealer to provide solution to my energy needs. My question is this, the batteries I was sold then was rated 12v * 200AH. Those batteries barely lasted 18months working at full capacity. I'm stuck at your claim of your batteries going at full capacity even for 5yrs! Is that really possible? Once again, kudos. I hope, not only to get on your sales train, but also buy from you eventually. But I'd really love to see one that is installed and working. Cheers!

Hi

Thanks for your message. The batteries you used ran down so quickly because you didn't have enough. Typically, they should be installed in a string of 4, so each battery does not run down past 50% capacity very often. That's what preserves the battery.

Another point to note is that just because 2 batteries are rated the same 12V 200AH does not mean they will last as long. A battery has a lifespan of the number of charge cycles it can hold. Typically, you get some that (when you read the smallprint) only can take 500 cycles, whilst the other is 1,000 cycles. In effect, the latter battery is twice as good as the former. Whilst I have no proof of this, my suspicion is that many of the batteries being sold in Nigeria today are of the lesser variety.

Regards

Uvie
Re: Cost Of Different Sources Of Electricity In Nigeria by gbrown(m): 6:34pm On Apr 09, 2013
Barcholder:

That IS the start up cost of Solar Power. There is only one cost of solar, and that is the start up cost. Once purchased, there are no additional running costs and they last for at least 25 years. They CANNOT break down, as there are no moving parts (the ONLY reason it will cease to work is because the people who installed it were morons). There is nothing to break down. Once installed, they continue to convert sunlight into electricity. It's actually a very simple technology, and is used extensively around the world.
bros, solar panels offer a cheap source of electricity, but you really need to understand how it works
underlisted are rules you adhere to if you want ur panels to last long
*periodic cleaning of panels dusty panels will not function very well
*never place ur dry cell batteries under panels,excess heat can destroy batteries
*solar panels dont work with stuff like pressing iron, electric kettles, it,s gonna destroy ur panels
*solar panels only work when there is plenty of sunshine
*solar panels only work during daytime, panels can work with deep cycled batteries
Re: Cost Of Different Sources Of Electricity In Nigeria by manny4life(m): 7:17pm On Apr 09, 2013
sweet_gala:

I don't think he ever said their panels would be able to exceed 17% but he has confirmed they can expect between 14-17% efficiency which in their opinion is about 90% of expected maximum efficiency over 25 years.

Seems the peculiar Nigerian virus of "not wanting better for the next man and seeing no good coming to or out of Nigeria" has infected you guys.

Encourage the young man rather than put him down at every turn.
Good luck bachelor, keep us informed on the progress of your pilot.

See me see trouble o, did you miss my post twice where I congratulated him, though I did reiterate that if one of his marketers comes to me, they should come correct. My friend, please leave me alone... The OP has since understood me, meanwhile you're here attacking my message...
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 7:49pm On Apr 09, 2013
gbrown:
bros, solar panels offer a cheap source of electricity, but you really need to understand how it works
underlisted are rules you adhere to if you want ur panels to last long
*periodic cleaning of panels dusty panels will not function very well
*never place ur dry cell batteries under panels,excess heat can destroy batteries
*solar panels dont work with stuff like pressing iron, electric kettles, it,s gonna destroy ur panels
*solar panels only work when there is plenty of sunshine
*solar panels only work during daytime, panels can work with deep cycled batteries

Hi - thanks for your input. I'd like to respond as follows:

1. Agreed. They must be kept clear from shade (sorted on installation) or dust (requires a good wipe down every 3 to 4 months) to ensure they continue producing their maximum amount of electricity. These things will reduce the amount of energy they produce

2.Agreed. Battery care is very important. Abuse them and they won't last as long as they should. I had to replace my Macbook Pro battery last month after less than 18 months, because my battery management sucks. I've learned my lesson.

3. Incorrect. You are mistaking energy production (Solar Panels) with energy load (Inverters). The inverter must be sized correctly to accept your maximum electricity load. This has nothing at all to do with the panels. The energy required to power those appliances has already been stored in the batteries, so they simply provide the power. The higher the load, the quicker the batteries will drain down.

4. Incorrect. Solar panels work with daylight hours, period. There is barely any sun here in the UK and they work perfectly well, though obviously don't produce as much energy as they would in Nigeria.

5. Agreed. When daylight disappears, the panels no longer produce any energy. Your electricity needs get sourced from the batteries which were charged up during the day. Following morning, energy production begins again, and the batteries get replenished. And so on and so on.

Regards

Uvie
Re: Cost Of Different Sources Of Electricity In Nigeria by Sike(m): 9:55pm On Apr 09, 2013
Na wa O!
Re: Cost Of Different Sources Of Electricity In Nigeria by ADint(m): 11:23pm On Apr 09, 2013
Renewable Energy is the future for power generation and this includes Solar, Wind, Biodiesel etc, but it is not yet here and not yet now, especially for us at the moment.

For an oil producing country like Nigeria with abundant gas reserves, the best short to medium and even arguably initial long term energy solution lies in gas fired power plants. The initial upfront cost associated with solar is still quite prohibitive relative to our best option which is gas. In the meantime though, we can start to invest in R& D for solar and other renewable energy sources. Its not rocket science that in another 5 years or so the cost of solar systems for example would have halved again from what they are today and also be more efficient making today's solar systems obsolete. So why the rush? When we have a much more viable, reliable and cost effective alternative at the moment.

OP the cheapest solar system you have on offer is about N850k for 1kw... that is a very expensive proposition, also mind you that this is NOT adequate for a standard middle class family in Nigeria with appliances like iron, microwave, electric kettle, AC, pumping machine etc. A 1kw power system that would only provide power for bulbs, fan, tv at over 800k does not really cut it. Moreover they would still need to rely on a secondary power source either from PHCN or generators to power their other appliances. At the moment solar power is more of a novelty.

Another worthwhile consideration, lets assume that we have 1 million households in Nigeria who can afford to go for the basic solar system at 850k each, that is N850 billion (about 5.5 billion dollars). $5.5 billion today would give us an additional approx 5,000 MW of gas fired grid electric power compared to 1,000 MW that the combined solar system would generate. At this stage of our development we are better off with 5,000 MW of grid electricty than 1,000 MW of minute distributed solar power for the same initial cost outlay, even though we would have ongoing cost with the grid power, the increased productivity and multiplier effect these extra 4,000 MW would generate for the economy would more that outweigh many many fold whatever cost savings we would get from a 1,000 MW solar system over 25 years. Yes it may take 12-24 months to put in place but still a better option in my opinion.

Also you have a price/cost comparism on your website, but you are not comparing like with like. You are comparing the cost of a 2 kw solar system with a 5kva generator over 5 years, a valid comparism would have been comparing your 4kw solar system with a 5kva generator.
Re: Cost Of Different Sources Of Electricity In Nigeria by Amoda84(m): 11:27pm On Apr 09, 2013
Very interesting thread I must say...I took my time to read from start to finish.I must commend the op for addressing all the raised questions. I wish you the best cos I'm convinced this will work fine eventually.
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 12:48am On Apr 10, 2013
Please see my first blog post. Comments will be appreciated.

http://solynta.com.ng/the-solution-to-nigerias-chronic-energy-problem/
Re: Cost Of Different Sources Of Electricity In Nigeria by tlderek(m): 1:41am On Apr 10, 2013
iRichards:

Thanks Beaf...Could you kindly offer more details? as per the vendor particularly and performance?

My email addy is iAdeRichards@gmail.com

Thanks.

please send me your vendor details to babatundelasisi84@yahoo.com
Re: Cost Of Different Sources Of Electricity In Nigeria by tlderek(m): 1:43am On Apr 10, 2013
Barcholder:

With the greatest of respect, you simply don't know what you are talking about. Let me be clear so EVERYBODY understands perfectly well.

1. The average Nigerian home ( 3 bedrooms, 4 persons) requires a 2kW System to provide ALL of their energy needs on a 24 hour basis. Forever. This system would produce an average of 10kWs of energy each day - the average family would only require 8kWs each day.

2. An Inverter size of 3.5-4 KVA would be required.

3. All installation would be provided

The total cost of this system is........N1.4m. Take this as a concrete fact. I'm the founder and CEO of the company, and I'm giving you a copper bottomed guarantee that this is what it costs.

As a way to appease sceptical Nigerians, we offer a full money back guarantee to anybody who is not completely satisfied with their system. This is a cast iron guarantee. I cannot say any more about us commercially on this thread, or it will be banned. Please read the other thread I have running here - you will find out more there.

https://www.nairaland.com/1234695/easiest-way-get-rich/3

kindly send me your company's contact details. I am really interested
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 1:50am On Apr 10, 2013
tlderek:

kindly send me your company's contact details. I am really interested

www dot solynta dot com dot ng

Regards

Uvie
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 3:02am On Apr 10, 2013
ADint: Renewable Energy is the future for power generation and this includes Solar, Wind, Biodiesel etc, but it is not yet here and not yet now, especially for us at the moment.

For an oil producing country like Nigeria with abundant gas reserves, the best short to medium and even arguably initial long term energy solution lies in gas fired power plants. The initial upfront cost associated with solar is still quite prohibitive relative to our best option which is gas. In the meantime though, we can start to invest in R& D for solar and other renewable energy sources. Its not rocket science that in another 5 years or so the cost of solar systems for example would have halved again from what they are today and also be more efficient making today's solar systems obsolete. So why the rush? When we have a much more viable, reliable and cost effective alternative at the moment.

OP the cheapest solar system you have on offer is about N850k for 1kw... that is a very expensive proposition, also mind you that this is NOT adequate for a standard middle class family in Nigeria with appliances like iron, microwave, electric kettle, AC, pumping machine etc. A 1kw power system that would only provide power for bulbs, fan, tv at over 800k does not really cut it. Moreover they would still need to rely on a secondary power source either from PHCN or generators to power their other appliances. At the moment solar power is more of a novelty.

Another worthwhile consideration, lets assume that we have 1 million households in Nigeria who can afford to go for the basic solar system at 850k each, that is N850 billion (about 5.5 billion dollars). $5.5 billion today would give us an additional approx 5,000 MW of gas fired grid electric power compared to 1,000 MW that the combined solar system would generate. At this stage of our development we are better off with 5,000 MW of grid electricty than 1,000 MW of minute distributed solar power for the same initial cost outlay, even though we would have ongoing cost with the grid power, the increased productivity and multiplier effect these extra 4,000 MW would generate for the economy would more that outweigh many many fold whatever cost savings we would get from a 1,000 MW solar system over 25 years. Yes it may take 12-24 months to put in place but still a better option in my opinion.

Also you have a price/cost comparism on your website, but you are not comparing like with like. You are comparing the cost of a 2 kw solar system with a 5kva generator over 5 years, a valid comparism would have been comparing your 4kw solar system with a 5kva generator.

An excellent post. One of the best yet in my humble opinion. Let me address your final point first. The Inverter is sized to handle the maximum load of the household, not the total amount of electricity generated, these are two totally different things.

I've noticed that there appears to be a lot of confusion between Energy Production and Energy Load (not surprising really as this is quite a confusing thing to understand). When designing a Solar Power System, there are 2 seperate things you need to take into account.

1. The average amount of Energy consumed by the household. On average, a 3 bedroom Nigerian household would consume anywhere between 6 and 10 kWh's (or units of electricity) each day. Therefore, the PV Solar array fitted to the roof must be sufficient to provide at least that amount of energy each day. In the South of Nigeria for example, the average Peak Sunlight hours received is about 4.5 - that means that a 2kW panel array (8 * 250W panels) will produce an average of 9kWh's of electricity each day.

2. The usage of electricity for a family will not be consistently spread across 24 hours - there will be peaks and troughs. For instance, during the daytime when nobody is home and also through the night, electricity usage will be minimal, with mainly just the fridge freezer on. In the evening when everyone returns home, electricity usage is likely to spike, with most of the appliances being used simultaneously. This simultaneous spike in usage is known as your Electricity Load, and in order to be able to handle it, your Inverter (or currently, generator) must be powerful enough to handle it. Typically, an average household with a 5kva generator uses no more than 8 kWh's of energy each day. Remember, your generator does not run at full load for the entire time it's on. You probably only hit full load very infrequently. The majority of the time, a generator will only be operating at 3/4 load on average. This basically means that the average family that currently own, say a 5kva generator will probably need a 5kva inverter to go with their 2kW Panel Array.

So the calculations on our site are accurate.

To your other points so eloquently made, I'll respond as follows:

The future of Nigeria's energy supply lies in a mixture of energy sources, as is the case in every single developed country in the world. No one source of energy can fulfil the entire quota required, for reasons of cost, practicality, safety etc. As an example, the UK currently produces just over 9% of its total power from renewable energy, of which Solar is a key component. The UK Government estimates that by 2020, 22,000MW of energy will be produced by Solar Energy by way of house rooftop installations. And that's in the Uk which receives an average of 1.5 peak sunlight hours a day on average. Put another way, the same number of rooftop panels projected in Nigeria would produce at least 3 times as much energy (66,000MW) in the South, and far higher in the north. To put some context behind that, the current total PHCN production capacity is just below 5,000MW, versus a demand of 60,000MW. The reasons for daily blackouts are obvious.

The 1kW package we sell is a starter package, and is clearly described as such, and would provide about 50% of a households daily electricity needs. A further point to note, Solar installations benefit significantly from economies of scale, so the larger the installation size, the lower the cost per kW. So, using the 1kW system as your base point is not really correct. That system is priced at $5 a Watt fully installed, whilst our larger solutions are priced much closer to $4 a Watt Fully installed. By the way, if you were to exclude the cost of the batteries, which are not needed in Western installations, and compared on a like for like basis, we are actually pricing our systems at significantly below $3 a kW Fully installed. That makes us by far the cheapest in the world. In no other country have they even gotten below $3.40 a Watt Installed. I have explained in previous posts exactly how and why we are able to do this and still make very healthy margins. This is a great source of pride for me.

Your description of the costs of building a power station versus Solar Installation are completely wrong. You are not comparing like with like. in order to do that, you would need to also calculate the cost of electricity supply to the average home over the next 25 years, based on the average expected Naira cost per kWh, then discounted to the present day. And bear in mind that there is a perpetual upward pressure on the raw material costs, namely gas, meaning that the current grid cost per kWh of N23 is likely to have at least doubled in 10 years (it will rise by close to 50% when the remaining fuel subsidy is removed later this year. By year 25, expect it to be in the region of N75 to N90 per kWh. Solar Power however, has ZERO additional input costs once installed, so its the perfect hedge against future energy cost rises. You will find that it's CONSIDERABLY cheaper than grid electricity over the long run. It is for this reason that Western governments of all political persuasions are falling over themselves to expand into Renewables.

The big bone of contention at the start of this thread was my calculations which showed that Solar Power, at the prices WE are selling at, is already cheaper than grid electricity, never mind diesel. I was vigorously challenged on my numbers, but I maintain that my calculations, whilst not necessarily being 100% accurate, do not have a margin of error of more than 15 - 20%. I estimate that it works out at a cost of N15.5 per kWh. Even if you inflated that number by 25%, it is still cheaper than grid electricity.

Your key point is therefore incorrect - at TODAY's prices, not only is Solar cheaper now, but over the short, medium and long term, it will be SIGNIFICANTLY cheaper than any other source of energy production.

Finally, your point about waiting until prices dropped further until buying is flawed. Firstly, we are now at a point where prices for the Solar panels themselves are fast approaching the bottom of the cost curve - a recent report I read predicts that the cost per watt will fall from $0.61 that it now is, to $0.44 in 5 years time. Bear in mind that it was over $2.00 just 3 years ago, and you begin to see that the depreciation in price is following the same trend as a car. In car parlance, it's fast approaching its scrap value and won't fall too much lower.

As a follow on to that point, the reason you won't necessarily see much if any reduction in the total installed cost of solar panels even when the panel prices fall to $0.44 a Watt is this:

The total cost of a Solar Installation is less than 50% comprised of the cost of the hardware. Close on 60% of the cost is made up of 'Soft Costs' such as Sales, Marketing, Installation etc. Essentially, the reason why I'm able to sell my systems at relatively low prices is because our soft costs currently in Nigeria are pretty low - there is practically no competition, so it's really easy to reach our target customer and sell. Once we prove categorically that Solar is the way forward for Nigeria and begin generating significant profits, there will no doubt be new entrants into the market, which will force up soft costs, meaning overall costs won't be able to fall to compensate for additional competition, as you would expect.

We have deliberately adopted a "Penetrative Pricing Model" precisely to allow as many people as possible to buy, cementing the Solynta brand in the process.

One final point to add - your point about waiting a few years before buying is entirely counter intuitive. Think about it. At the moment, the average home receives little more than an average of 4 hours a day of grid electricity. In order to receive 24 hour electricity, you would have to run your generator for the balancing 20 hours. Given the cost of diesel per kWh is N70, that means that, on a 24 hour basis, your average cost of electricity is N62.25 per kWh. Compared to N15.5kWh's for Solar. And further, implicit in that statement is that 24 hour grid electricity will be here within 3 to 4 years. It most certainly will not. It is doubtful whether, given the current demand / supply deficit (remember this does not even account for the 50% of the population without ANY electricity), and the projected more than doubling of the population over the next 30 years (70% of the population is under 30), Nigeria will see total 24 hour grid electricity in either of our lifetimes - i'm 35 years young. And even if it did, the cost of it would probably be 3 to 4 times the cost of Solar Energy as explained above.

It really is a real 'no brainer'. The UK government just wishes we had the level of sunshine Nigeria gets. If it did, close to 50% of our 77,000MW production capacity would already be provided by the Sun.

1 Like

Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 11:01am On Apr 10, 2013
I have reflected greatly on the feedback and comments gratefully received on this message thread. I realise that the experience of Solar Energy in Nigeria to date has been a negative one, owing to the atrocious business practices of nigerian businesses.

So, I have decided that it will take something drastic to shift that negative perspective and give us the chance to prove every word that we say.

I hereby issue the following challenge to everybody:

If you purchase our products from us, we will ask you to put down a 20% deposit. I will then personally guarantee you that, If, after 3 months of using our systems, you are not 100% satisfied with the quality of it, or feel you have been missold in any way, shape or form, I will allow you to keep the system without paying another penny.

In other words, you will not pay a dime in monthly repayments for the first 3 months. If, after that period, you are not satisfied, you get to keep it for free. The qualifying conditions are as follows:

We will verify all claims that the product is not working. This is very simple to establish, as the power output readings of the system is clear for all to see. Please just be fair and honest with us, as we are to you.

This you have as a copper bottomed guarantee from the founder and CEO of Solynta Energy.

All I ask in return is that WHEN you see that we are truly have the answer to solving Nigeria's power problem, you come back onto these boards and advocate for us. I can't say fairer than that.

I welcome all your comments. If you are interested in taking up this business challenge, please contact me personally at

uvie.ugono@solynta.com.ng

I look forward to your feedback

Regards

Uvie

1 Like

Re: Cost Of Different Sources Of Electricity In Nigeria by 1forall: 10:28pm On Apr 10, 2013
Hi Uvie,

I read through this topic from the start but skipped some portions as it grew (it's grown quite long) and so I don't know if this has been mentioned already. However what I'd like to add is a comment about the general Nigerian skepticism about renewable energy which I believe is largely due to the generator culture we've cultivated over the years.

If a device is not making noise, emitting fumes or needing fuel it's a bit difficult for a typical Nigerian to conceive it as capable of producing energy reliably after decades of dependence on generators. When you think that a certain capacity (0.95KVa) has been nicknamed I-better-pass-my-neighbour, and think too that some children born in the late 90s & early 2000s have NEVER known life without generators it may help to understand how deep the problem of its conception lies, and how generators have become a culture.

Hopefully that gives some sort of perspective on one of the different ways to approach selling solar energy.

Also because of how I've skipped through a little bit I'm not entirely sure about your plans or business model in terms of Solynta's relationship with existing solar energy providers so I have a few questions:

1. Seeing that you are relatively new to the Nigerian market, do you have any plans to develop relationships with existing organizations in the same line of business who may be a bit more familiar with the terrain?

2. Do you see any benefit in doing so?

1 Like

Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 11:44pm On Apr 10, 2013
1forall: Hi Uvie,

I read through this topic from the start but skipped some portions as it grew (it's grown quite long) and so I don't know if this has been mentioned already. However what I'd like to add is a comment about the general Nigerian skepticism about renewable energy which I believe is largely due to the generator culture we've cultivated over the years.

If a device is not making noise, emitting fumes or needing fuel it's a bit difficult for a typical Nigerian to conceive it as capable of producing energy reliably after decades of dependence on generators. When you think that a certain capacity (0.95KVa) has been nicknamed I-better-pass-my-neighbour, and think too that some children born in the late 90s & early 2000s have NEVER known life without generators it may help to understand how deep the problem of its conception lies, and how generators have become a culture.

Hopefully that gives some sort of perspective on one of the different ways to approach selling solar energy.

Also because of how I've skipped through a little bit I'm not entirely sure about your plans or business model in terms of Solynta's relationship with existing solar energy providers so I have a few questions:

1. Seeing that you are relatively new to the Nigerian market, do you have any plans to develop relationships with existing organizations in the same line of business who may be a bit more familiar with the terrain?

2. Do you see any benefit in doing so?

Hi, and thanks for your contribution. You ask some really interesting questions. I'll try to respond

Firstly, your analysis of the difficulty in conceiving of a silent energy system when you are so used to the status quo is so, so true. A good friend of mine is a Doctor, and when he was much younger, he travelled across Southern Africa as part of a humanitarian excercise, operating on people who had lived their whole lives unable to see. The cure was so simple, and there would be utter amazement at how easily they were cured. And yes, I've been made well aware of the "I better pass my neighbour" generators.

In terms of relationships with existing Solar Energy Providers, I plan to use them as a distribution channel for our products. They will be able to carry the Solynta brand products and sell into their customers. The more sellers of Solar Power systems that work, the better. Given our enormous purchasing power, they can leverage off this by getting high quality products directly from source, and sell in at their own prices. The only restriction is that we will ONLY stock Solynta brand products. Brand building is what this is all about (there are much much bigger plans in the pipeline for the Solynta Brand, and this is just the tip of the iceberg - I won't say more than that at the moment).

As stated, I see great benefit in doing this because, as I'm sure you have seen from this message thread, there is a lot of scepticism about Solar in Nigeria, for obvious reasons. What is required is the re-education of the people on the subject, and the best way to do this is for them to see lots of examples of fully functioning Solar systems all around them. This will have the effect of significantly increasing the "low lying fruit" customer pool for Solynta. That is, the number of customers who come directly to us to buy without us having to go to market to them. Currently, Generator retailers don't have to convince their customers whether their product work or not. That's already been established. Instead, their focus is on out-competing their rivals for the business. Solynta doesn't have to worry about that for now, because Solar take up is very much in its infancy still. Therefore, rapid penetration and revenue growth is very likely once the concept of Solar has been fully proved in the eyes of the consumer. Existing small scale providers on the ground can assist greatly in achieving this.

With this approach, I believe we would have significantly reduced the power problem within 10 years. Refer to the rapid penetration of mobile telephony into Nigeria as a blueprint of what will happen with Solar Energy. 15 years ago, if anybody had come on these boards (if they existed) and said that today, most Nigerians would have access to a phone of their own, they would have received the same response as I have. But its all good, I know none of it is said with malice, but is people merely expressing their genuine opinions, formed through past experiences. It's up to Solynta to change their Solar reference point from the negative to the positive.

The fuller plans of our execution strategy and how existing Solar Power Providers fit into that will become clearer after we formally launch in May. The best way to get information would be to follow us on Twitter.

Hope that helps

Regards

Uvie
Re: Cost Of Different Sources Of Electricity In Nigeria by 1forall: 9:02am On Apr 11, 2013
Thanks for your response. I'm kinda busy right now, shall respond later in the day.
Re: Cost Of Different Sources Of Electricity In Nigeria by 1forall: 9:22pm On Apr 11, 2013
Hi Uvie, I've got a friend/associate in Nigeria who's been into this line of business for many years now and was just thinking maybe both your companies could establish a mutually beneficial business relationship. As far as I know their major clients are corporate organizations and demand has been on the increase lately according to him.

As you have given consideration to dealing with existing solar energy providers, I have thought of hooking you both up to see if you could find some common business ground. I haven't spoken to him about this yet as I want to be sure you're open to the idea but what I'm thinking of doing is sending you both an introductory email after which you guys can take your discussions further, if you're cool with it that is?
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 12:50am On Apr 12, 2013
It's official. Solar energy is the cheapest form of electricity in Nigeria today, even cheaper than PHCN. Here are the numbers in clear detail

Cost Per kWh
NGN

Generator 95 (Range between N70-N120, based on the latest Fuel Prices)
PHCN 23
Solar Energy (Solynta Energy) 22.95

So how have I calculated the Solar Energy Cost per kWh? Here's how.

Cost of Standard 2kW System (8 * 250W Monocrystalline Solar Panels) NGN 1,400,000
Replacement cost of Inverter every 10 Years - 3.75KVA NGN 175,708
Replacement cost of Batteries every 5 Years - 4 * 200AH NGN 644,800

Total NGN 2,220,508

Net Present value of cashflows, discounted at 20% (Cost of Capital) NGN 1,508,973

Total Energy Produced by 2kW System over 20 Years 65,745 kWh's

Therefore, cost per kWh is ....... 1508973/65745 = 22.95

The Following assumptions were used in calculating total energy production over 20 years:

1. Average Peak Sunlight Hours - 5
2. DC to AC conversion rate - 0.9

So, total is calculated as: 2kW * 5 * 0.9 * 365.25 * 20 = 65,745

It's official. Solar Energy, at the prices Solynta Energy will sell it at, is the cheapest form of energy in Nigeria. It also represents an huge 75% cost reduction on the average cost of self generated electricity in Nigeria. This is BEFORE the impending removal of the remaining fuel subsidy still 'enjoyed' by Nigerians. This wil increase the cost per kWh from generators by 50% to N135.

Please note that the price INCLUDES Installation.

Discuss

Regards

Uvie
Re: Cost Of Different Sources Of Electricity In Nigeria by alstacs(m): 3:57am On Apr 17, 2013
I must commend you, Barc for the good work here. I was wondering why your cost seems to be on the high side but now I see a lot goes into your final bill.....installation, maintennce, waranty etc.
For now, I would say I love your website and this is the first time I would see technical facts presented in a very simple way.
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 7:51am On Apr 17, 2013
alstacs: I must commend you, Barc for the good work here. I was wondering why your cost seems to be on the high side but now I see a lot goes into your final bill.....installation, maintennce, waranty etc.
For now, I would say I love your website and this is the first time I would see technical facts presented in a very simple way.

Thank you for your kind words. Our objective was to first explain Solar Energy in it's most simple form, so people can see that it really is the future of energy in Nigeria. There appears to be a lot of misconceptions about Solar Energy, much of which has been caused by the terrible work of unscrupulous businessmen. Our objective is to first destroy the myth that Solar Energy doesn't work - the next is to then destroy the myth that it's expensive.

Given Nigeria's unique problems, Solar Energy is SIGNIFICANTLY cheaper that ALL other forms of energy generation in the country, including PHCN. The cost price of PHCN is between N22-N24 a kWh, and, given the new tariffs announced, those people who fall into the R3 and above category are required to pay simply horrendous rates per kWh, in excess of N100 per kWh. This is on a par with diesel and petrol generator prices per kWh. The same is true for commercial and industrial users. This is so they can provide a subsidy to the poor.

Our Solar Power systems work out below N23 per kWh, so is over 75% cheaper than both generators and PHCN. And most importantly, it's costs are fixed for the next 25 years, whereas the cost of both alternatives above are set to continually rise year on year.
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 8:05am On Apr 17, 2013
Hi All

We are attempting to break the world record for the highest number of respondents to a survey in history. We want to reach 1 million respondents to our Energy Cost Survey in Nigeria.

It will be the most comprehensive survey into the Nigerian Energy crisis ever conducted - the results will be featured in several national newspapers.

We would be grateful for your participation in this short (less than 1 minute survey). 2 lucky respondents will receive a FREE Amazon Kindle Fire HD as a reward for participation.

Thanking you in advance.

https://www.surveymonkey.com/s/HG357M8
Re: Cost Of Different Sources Of Electricity In Nigeria by 1forall: 5:44pm On Apr 17, 2013
Hi Uvie,
Did you miss my question 5 posts up?
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 11:25pm On Apr 17, 2013
1forall: Hi Uvie,
Did you miss my question 5 posts up?

Hi - Sorry I did miss your question.

Yes, I'd be very happy to work with your contacts. Please ask them to contact me directly, and we can go from there.

Regards

Uvie
Re: Cost Of Different Sources Of Electricity In Nigeria by 1forall: 1:49pm On Apr 18, 2013
Ok that's cool. I'll have that arranged and you should hear from him soon.
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 3:11pm On Apr 18, 2013
1forall: Ok that's cool. I'll have that arranged and you should hear from him soon.

Many thanks

Uvie
Re: Cost Of Different Sources Of Electricity In Nigeria by Barcholder: 7:07pm On Apr 22, 2013
Finally arrived and set up in Lagos. It really is good to be here.

How I love this country. Time to get to work. Demand for our products is already growing pretty rapidly.

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