Stakeholders Seek Enabling Policies to Stimulate Local Manufacturing of Solar Components
Peter Uzoho
Stakeholders in the Nigerian solar energy sector have stressed the need for the federal government to formulate and implement policies aimed at encouraging local manufacturing of solar components and equipment in the country.
The stakeholders include operators, the Rural Electrification Agency (REA), Standards Organisation of Nigeria (SON) and financial institutions.
Speaking at the event, Southwest Zonal Coordinator, REA, Mr. Owoyemi Adewale, pointed out that the cost of developing and manufacturing solar systems and components in Nigeria was so high hence the need for government to intervene and support players in the sector, who want to venture into local manufacturing.
He stressed that high cost of operation hamper solar operators from manufacturing locally which makes them resort to importing the products as they consider that option more convenient and profitable.
“If we really want Nigerians to adopt renewable energy,, the cost must be very minimal and affordable where every average Nigerian can have a solar home system. So, in a nutshell, there must be duty-free for imported solar components and then, the lending rates for solar manufacturing must be very low at single digits.
“So, the policy of the government must be emphasising on the loan aspect of the manufacturing business and giving them at a rate that is minimal. There is nothing that stops the government from giving a loan to a genuine manufacturer at zero percent interest. That is an area government needs to look at if we want to develop the sector, “Adewale noted.
Executive Director, Gennex Technologies, a solar solutions firm, Mrs Oluwatoyin Ilo, who acknowledged that financial barriers still hinder the adoption and penetration of solar energy in Nigeria, called for collaboration between the government and the private sector to accelerate local production and utilisation of solar energy.
She noted that as countries in Africa deal with many economic challenges, which are worsened by high energy cost, there was no better time to look inwards to spur production of renewable energy inputs in the continent.
Chief Executive Officer, Kartel Energy Limited, Ola Ogunsemowo, echoed the need to make funds available for companies willing to venture into manufacturing of solar systems and components locally.
He pointed out that accessing funds for hardware manufacturing in the solar space was always difficult because investors were more interested funding projects that would guarantee them quick return on investment.
Group Head, Products and Market Development, Polaris Bank Plc, Mrs Adebimpe Ihekuna, advised the government to show more commitment in boosting local manufacturing of solar solutions by joining to finance projects in the sector through equity partnership and enabling fiscal and regulatory policies.
