Soaring production costs hindering solar panel manufacturing in Nigeria –Sorento CEO

The Chief Executive Officer of Sorento Nigeria Limited, Gaurav Vaswani, and the company’s General Manager, Vinay Pataskar, are navigating challenges to strengthen their presence in Nigeria’s solar energy market. Their company specializes in supplying, selling, and installing solar energy solutions across the country, driven by the growing adoption of solar power and the promising business opportunities it presents.

Vaswani explained that their decision to enter the Nigerian market was motivated by both financial prospects and a desire to contribute to the country’s development. He noted that the increasing demand for solar energy in Nigeria offered a valuable business opportunity, but their goals extend beyond profit. They aim to support Nigeria’s economic progress by providing reliable solar solutions, which, in turn, could boost their business and the nation’s growth.

However, Vaswani acknowledged that while solar energy is gaining recognition in Nigeria, affordability remains a significant challenge. The unreliable national electricity supply and the rising costs of traditional fuels like gas and diesel make solar energy an attractive option, but the high initial investment needed for solar systems is a major barrier. Despite the demand for reliable power sources, many Nigerians find solar energy economically inaccessible.

He estimated that about half of Nigeria’s population is aware of solar energy due to exposure from international travel, social media, and various media channels. However, this awareness has not yet led to widespread adoption. Although many Nigerians understand the benefits of solar energy, the actual usage rate remains low. Vaswani suggested that a stronger push from regulatory bodies, like the Nigerian Electricity Regulatory Commission (NERC), could accelerate the transition to solar energy.

Vaswani expressed optimism that the NERC would support the growth of solar energy by implementing policies such as solar registration and offering incentives for solar investments. He pointed out that the lack of a structured system for integrating solar energy into the national grid currently limits its potential.

Addressing the high cost of solar panels is critical for wider adoption, according to Vaswani. The economic challenges in Nigeria, including high costs and low disposable incomes, make it difficult for many to invest in solar technology. He believes that government support aimed at reducing economic disparities and improving disposable incomes could enhance access to solar energy.

Vaswani clarified that solar panels are not currently manufactured in Nigeria due to the high costs associated with local production, such as expensive labor, land, and energy. As a result, importing panels is more cost-effective. While Sorento Nigeria Limited assembles panels locally, establishing a full-scale manufacturing facility is not feasible under current conditions. However, if circumstances improve, the company may consider local manufacturing in the future.

Vaswani also noted that while solar energy can support manufacturing equipment, it is not practical as the primary power source due to the high costs involved. Solar energy is more suitable as a supplementary power source, helping to reduce overall energy costs rather than serving as the main energy provider for manufacturing operations.

Currently, Sorento Nigeria Limited does not have physical outlets in South Eastern Nigeria but distributes its products nationwide through a network of agents and dealers. Vaswani mentioned that this approach is more cost-effective at the moment, but the company remains hopeful that improvements in the business environment will eventually allow them to consider expanding into South Eastern Nigeria.