How Much Can You Save on Electricity Bills with Solar in Nigeria?
With NERC's 2025 tariff increases pushing Band A rates to ₦295/kWh, thousands of Nigerian homeowners are asking the same question: is solar actually worth it? We break down the real numbers.
The Real Cost of Electricity in Nigeria Today
If you're on EKEDC or IBEDC Band A, you're now paying ₦295 per kWh — up from ₦68/kWh just three years ago. For a typical Lagos household consuming 300 kWh per month, that's ₦88,500 in electricity bills alone, before you account for the generator fuel you burn when NEPA fails.
Let's do the honest maths.
A Typical Lagos Household: The Numbers
Monthly energy profile:
- •Grid supply: ~6 hours/day (Band A)
- •Generator usage: ~8 hours/day
- •Daily consumption: ~15 kWh
- •Monthly consumption: ~450 kWh
Current monthly costs:
- •Electricity bill (grid): ₦39,825
- •Generator fuel (at ₦1,100/litre, 2.2 kWh/litre): ₦110,250
- •Generator maintenance: ₦11,025
- •Total: ₦161,100/month
That's ₦1,933,200 per year — just to keep your lights on.
What Solar Saves You
A properly sized 5KVA solar system (lithium) for this household costs approximately ₦5,850,000 installed. Here's what changes:
Monthly costs with solar:
- •Solar maintenance (2% annual / 12): ₦9,750
- •Residual grid/fuel for overflow loads: ~₦20,000
- •Total: ~₦29,750/month
Monthly savings: ₦131,350
Annual savings: ₦1,576,200
Payback period: 3.7 years
After payback, your system runs for another 6–16 years (depending on battery type) with minimal cost. A lithium system with a 10-year battery lifespan delivers over ₦10 million in savings over its lifetime.
Does Battery Type Change the Savings?
Yes — significantly.
| Tubular Lead-Acid | Lithium (LiFePO4) | |
|---|---|---|
| Upfront cost | Lower | Higher |
| Battery replacement | Every 3–5 years | Every 10+ years |
| Depth of discharge | 50% | 80% |
| Effective storage | Less | More |
| 10-year total cost | Higher (replacements) | Lower |
For most households, lithium wins on total cost of ownership despite the higher upfront price — especially given how rapidly Nigerian battery replacement costs are rising.
The Generator Trap
Many Nigerians underestimate generator costs because they're paid in small daily increments — ₦3,000–₦5,000 at the fuel station feels routine. But annually, a household running a 3.5KVA generator 8 hours/day is spending over ₦1.2 million on fuel alone, plus the hidden costs of maintenance, repairs, and eventual replacement.
Solar eliminates this cost almost entirely. It's not just a power solution — it's a financial decision.
How to Calculate Your Own Savings
Use the Kasot Power Solar Calculator to input your actual appliances and location. It uses live sunlight data from Open-Meteo, your DISCO band tariff, and realistic generator efficiency to give you a personalised payback period.
Most households in Lagos and Abuja see payback in 3.5–5 years. In higher-sun northern cities like Kano or Maiduguri, that number drops to 2.8–4 years.
Ready to Find Out Your Number?
Get a free consultation with our team — we'll walk you through the exact savings calculation for your home or business, with no obligation.
Calculate Your Solar Savings
Get a personalised estimate for your home or business in seconds.
