How You Can Finance Your Solar Systems Installation Without Breaking the Bank
Are you looking to install a solar system in your home or business but are skeptical because of the setup cost? Learning how to finance your solar systems installation without breaking the bank might be all you need to execute that project.
Installing a solar system in a home or business premises is quite expensive, especially when you consider that a fuel generator costs far less. However, in the long run, it is far more affordable to run a solar system.
Therefore, to help you make that investment leap, this article discusses ways to finance your solar system installation without breaking the bank.
The Cost of Installing a Solar System in Nigeria
The cost of installing a solar system in Nigeria depends on various factors, including the size of the system, the quality of the components used, installation service costs, and any additional features or services required.
A solar system comprises several components, such as solar panels, inverters, batteries, charge controllers, and mounting hardware. Here are the estimated costs of each component based on a 5kWp solar system:
- Solar panels: N800,000 to N1,200,000
- Inverter: N300,000 to N600,000
- Batteries: N500,000 to N1,000,000
- Charge controllers: N200,000 to N400,000
- Mounting hardware: N150,000 to N300,000
- Labor costs: N200,000 to N500,000
These figures show that a typical 5kWp solar system costs between N2,150,000 to N4,000,000 to install.
Note: This is based on estimated costs and might vary when you want to make your installations.
Now that you know what it costs to install a solar system in Nigeria, let’s look at the different ways you can finance this project.
Ways to Finance Your Solar System Installation in Nigeria
Here are the different ways you can finance your solar system installation in Nigeria:
1. Personal Savings
If you have sufficient savings, using your personal funds to finance the solar system installation can be the most straightforward option. It eliminates the need for interest payments or loan approvals and makes the process faster.
Even if you don’t have the savings to set up the exact capacity you want in a solar system, you can start with the one you can afford and upgrade the system with time. This has worked for many, as it’s the safest approach to eliminating fuel generators in your home or business premises.
2. Bank Loans
Many banks in Nigeria are willing to offer you loans provided you show that you can repay them. Some banks even have loans specifically tailored for renewable energy projects as they move to align their services to goal number 7 in the SDGs.
Check with various banks for their loan terms and interest rates, and choose the one that aligns with your budget and needs. Ensure you understand the terms provided, including the loan duration, repayment amount and frequency, and other conditions involved.
3. Solar Leasing
Some companies offer solar leasing arrangements where they install the solar system on your property, and you pay a monthly fee for the electricity generated. This can be a good option if you don’t want to pay the upfront costs of purchasing the system.
In solar leasing, the solar company takes care of the system’s maintenance and repairs, allowing you to only bother about the monthly fee.
However, the downside to this form of solar installation financing is that the solar company may increase the monthly payments at any time. This can be due to the rising costs of maintenance and repairs, plus the labor costs involved.
4. Buy Now Pay Later
Some solar installation companies in Nigeria allow you to install a solar system without paying the outright cost. They allow you to pay an agreed percentage of the total installation cost and spread the remaining across several months.
The Buy Now Pay Later financing option is suitable for individuals and businesses that don’t have enough capital to purchase solar systems outright.
SRV Grid Solar System Financing
At SRV Grid Ltd, we offer flexible payment options to enable you to enjoy our optimum solar solutions. Our “Pay Small Small” plan is similar to the buy now pay later option above, but it’s more structured to give you the best service.
Beyond allowing you to pay for your solar installation in installments, we offer you free consulting services to guide you on maximizing your solar systems.
SRV Grid Ltd stands as one of the best solar providers in Nigeria, with over ten years of experience in the industry. We have experts on solar systems who have successfully implemented solar projects across different sectors, tailoring them to each client’s specific needs.
Conclusion
Solar system installation is no doubt a cost-intensive project. You need millions to install a solar system that can serve your home or small business premises.
However, it’s also a one-time cost that covers your power needs for the next 10 to 30 years. Unlike using fuel generators, you won’t need to buy petrol every day, service your solar system monthly, or even replace it after a few years. When the installation cost of solar systems is spread across the years it will serve, you’ll find out it’s far cheaper than a fuel-powered generator.
Ready to install top-quality solar systems in your home or business premises? Contact SRV Grid now for your top-quality and affordable solar solution. You can reach us on any of these contacts:
Phone: +2349037556518
+2348090205676
+2347069537280
Email Address: info@srvgrid.ng
Physical Address: 24, lateef jakande road agidingbin opp Cadbury plc Lagos Ikeja
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