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Nigeria Solar Subsidy (DARES) Calculator

Calculate your DARES subsidy, net system cost in Naira, monthly savings vs generator, and payback period. The $750M DARES programme subsidises up to 50% for qualifying distributed solar systems.

Your location & energy spending
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Desired system size
DARES subsidy estimate
Pay ₦1,750,000 after 50% subsidy
Estimated system cost₦3,500,000
DARES subsidy (50%)− ₦1,750,000
Net cost after subsidy₦1,750,000
Monthly savings vs current₦53,500/mo
Annual savings₦642,000/yr
Payback period2.7 years
CO₂ eliminated (generator)1386 kg CO₂/yr
Financing optionsCash: ₦1,750,000 · Loan (3yr): ~₦48,611/mo · Pay-as-you-go (5yr): ~₦29,167/mo
Note: DARES subsidy eligibility subject to programme guidelines and available funding. System cost estimates are indicative — get quotes from verified DARES-approved installers. The $750M DARES programme launched late 2025 targets distributed solar systems.
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How to Use This Calculator

Select your state and enter monthly energy spending

Select your Nigerian state — this determines your peak sun hours for production estimates. Nigeria has excellent solar resources everywhere: northern states (Kano, Sokoto, Borno) get 6.0-6.5 peak sun hours per day; southern and coastal states (Lagos, Rivers, Bayelsa) get 4.5-5.0 — still among the best in Africa. Enter your monthly NERC/DisCo electricity bill and generator fuel spending separately for an accurate savings calculation.

Enter your generator fuel cost honestly

For most Nigerian households and businesses, generator fuel is the largest energy cost — easily ₦40,000-₦250,000 per month. This is also the primary reason solar has such fast payback periods in Nigeria compared to grid-power-only countries. Select your fuel type (diesel at ₦1,200/L or petrol at ₦800/L based on 2026 prices) and enter your honest monthly spend.

Choose your system size

System size in kVA (kilovolt-amperes) represents the peak power capacity: 3.5 kVA for a small apartment with fans, lights, and a small fridge; 5 kVA for a 2-3 bedroom home; 10 kVA for large homes with 2+ air conditioners; 15 kVA for small businesses. The DARES subsidy rate is highest for smaller residential systems (up to 50%) and decreases for larger commercial systems (30%).

The Formula

Total Monthly Spending = Grid Bill + Generator Fuel Cost Monthly Savings ≈ Total Spending − 10% residual grid top-up Annual Savings = Monthly Savings × 12 DARES Subsidy = System Cost × Subsidy Rate (50% for ≤5 kVA · 40% for 5-10 kVA · 30% for 10-15 kVA) Net Cost = System Cost − DARES Subsidy Payback Years = Net Cost ÷ Annual Savings Generator CO₂ (kg/yr) = (Monthly Fuel Spend ÷ Fuel Price per Litre) × 12 × CO₂ Factor Diesel CO₂: 2.68 kg/litre · Petrol CO₂: 2.31 kg/litre

The DARES (Distributed Access through Renewable Energy Scale-up) programme, launched late 2025 with $750 million in funding, subsidizes distributed solar systems in Nigeria. The programme prioritises households and small businesses currently dependent on generators — exactly the segment where solar provides the most immediate relief. Subsidy rates shown are planning estimates; actual amounts depend on available programme funding and approved installer quotations.

Example

Amaka — Medium home in Lagos on grid + generator

Amaka lives in a 3-bedroom home in Lagos. She pays ₦25,000/month to EKEDC (Eko DisCo) and spends ₦60,000/month on petrol for her 3.5 kVA generator. She wants a 5 kVA solar system.

StateLagos
Monthly grid bill₦25,000
Monthly generator fuel₦60,000 (petrol)
Total monthly energy cost₦85,000/month
Desired system5 kVA

Result

System cost₦5,200,000
DARES subsidy (50%)− ₦2,600,000
Net cost to pay₦2,600,000
Monthly savings~₦82,500/month
Annual savings~₦990,000/year
Payback period~2.6 years
Generator CO₂ eliminated~1,080 kg CO₂/yr

With a 50% DARES subsidy, Amaka's net cost is ₦2.6 million for a system that saves her nearly ₦1 million per year. The payback period of 2.6 years on a 20-year system lifespan makes this one of the best financial decisions available in Nigeria today. The generator is fully eliminated — no more petrol queues, no noise, no fumes.

FAQ

DARES (Distributed Access through Renewable Energy Scale-up) is a $750 million World Bank-funded programme launched in Nigeria in late 2025. It targets households and small businesses currently using generators or living in underserved grid areas. Qualifying criteria typically include: purchasing through an approved DARES-registered installer, system size within programme guidelines, and proof of residency or business registration. The 50% subsidy is the maximum — actual subsidy depends on system size, location, and remaining programme funding. Contact the Rural Electrification Agency (REA) at rea.gov.ng for the current approved installer list.
Sizing depends on your peak load. As a guide: a 1-bedroom apartment (fans, lights, TV, small fridge): 3.5 kVA. A 2-3 bedroom home (above + washing machine, larger fridge): 5 kVA. A 4+ bedroom home (above + 1-2 air conditioners): 7.5-10 kVA. A small business (office, shop with multiple ACs and equipment): 10-15 kVA. Air conditioning is the biggest load — one 1.5 HP (1.1 kW) inverter AC running 8 hours/day uses 8.8 kWh, which significantly increases battery and panel requirements. Inverter ACs are strongly recommended for solar systems.
With petrol at ₦800/litre and diesel at ₦1,200/litre in 2026, generator running costs are extremely high. A typical 3.5 kVA petrol generator consumes 0.8-1.2 litres/hour at 50% load — that's ₦640-960/hour. Running 8 hours/day costs ₦5,100-7,700/day or ₦154,000-230,000/month. A solar system with battery eliminates this cost entirely after installation. Even without the DARES subsidy, solar payback in Nigeria is typically 3-5 years — with the subsidy, often 2-3 years. Solar panels last 20-25 years.
Three main options: (1) Cash purchase — lowest total cost, immediate full savings. (2) Bank or MFI loan — commercial banks and microfinance institutions offer 12-36 month solar loans at 15-25% p.a.; some DARES-aligned institutions offer concessionary rates. (3) Pay-as-you-go (PAYG) — companies like Lumos, Yellow, and ZOLA provide PAYG solar systems where you pay weekly or monthly via mobile money; higher total cost but zero upfront. The DARES programme is also exploring result-based financing where subsidies are disbursed to approved installers after verified system installation.
Nigeria has outstanding solar resources. The entire country receives more sunshine than Germany (Europe's largest solar market). Northern Nigeria — Kano, Sokoto, Borno, Jigawa — receives 6.0-6.5 peak sun hours per day, comparable to the US Southwest. Southern Nigeria and coastal areas receive 4.5-5.0 peak sun hours — still excellent, similar to Florida. Even during the rainy season (April-October in the south), solar panels continue to generate significant power from diffuse light. Cloud cover reduces but does not eliminate solar production. Nigerian solar installers size systems conservatively to account for seasonal variation.

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