Nigeria’s Renewable Energy Industry Shifts Focus to Storage as Solar Costs Fall

Nigeria's renewable energy industry is shifting its focus towards energy storage solutions, driven by declining solar equipment costs and advancements in smart energy infrastructure. Discussions at Solar & Storage Live Nigeria 2026 highlighted this evolving landscape, with experts emphasizing that renewable energy is no longer prohibitively expensive.

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Component costs have fallen by more than 100 per cent over the last 10 to 15 years, and in some cases we’re seeing declines of 200 to 300 per cent.

Ayo Adedimulua, President of the Renewable Energy Association of Nigeria (REAN), stated that component costs have decreased significantly over the past decade, making solar power increasingly competitive. "Every naira spent on diesel or petrol is gone the moment it is burned. Every naira invested in solar panels or batteries continues delivering value over the lifetime of the asset," he explained. Adedimulua also pointed out Nigeria's vast untapped potential in hydro, wind, biomass, and geothermal resources, stressing the need for accurate risk pricing.

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Every naira spent on diesel or petrol is gone the moment it is burned. Every naira invested in solar panels or batteries continues delivering value over the lifetime of the asset.

The growing confidence in the sector was evident in the increased participation of manufacturers, developers, financiers, and policymakers at the conference. Abba Aliyu, Managing Director and CEO of the Rural Electrification Agency (REA), predicted that future investments would prioritize storage. "The next wave of capital will not go into generation," Aliyu said. "It will go into storage. That is where the unlock happens."

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We have everything we need. What we’ve lacked is the conviction to price risk correctly.