Business

Solar Subscription Schemes Turn Light into a Perpetual Rent for Nigerians

Published on by Sentinel Digest Editorial

Solar Subscription Schemes Turn Light into a Perpetual Rent for Nigerians
Solar Subscription Schemes Turn Light into a Perpetual Rent for Nigerians

Solar subscription plans in Nigeria are being criticised as a new form of perpetual electricity billing, keeping users paying forever while foreign investors reap the profits. Experts urge rent‑to‑own models to give Nigerians true ownership of their power assets.

Solar subscription schemes operating across Lagos, Ibadan and Port Harcourt are effectively charging Nigerians a perpetual rent for electricity, mirroring the old NEPA billing system, according to a commentary by Joseph Omotayo of [Legit.ng](https://www.legit.ng/) published on TechCityNG.

**What is the current state of Nigeria’s power supply?**

The national grid continues to falter, with Band A tariffs staying above N200 per kilowatt‑hour, making grid electricity costly for households and small businesses. Rising petrol prices have also rendered daily generator use unaffordable for tailors, barbers and cold‑room operators. In response, Nigerians have poured billions of naira into importing millions of solar panels to mitigate the crisis.

**How do solar subscription plans work?**

Foreign‑backed solar firms market “solar subscription” as a low‑cost alternative, promising users that they need not purchase expensive panels, inverters or lithium batteries. Instead, customers pay a modest monthly fee for the right to use the equipment. The arrangement resembles a landlord‑tenant relationship: the user never owns the system and can lose access if payments lapse.

**Why does the model financially disadvantage users?**

A point‑of‑sale (POS) agent in Lagos, for example, may pay a fixed amount each month. After three or four years, the cumulative payments often exceed the price of purchasing a comparable system outright, yet the contract can be terminated and the hardware reclaimed by the provider. A missed payment can trigger a remote shutdown of the inverter, plunging the shop into darkness despite years of payments.

**Who benefits from these arrangements?**

Foreign investors favour the subscription model because it guarantees continuous monthly cash flow. They fund the hardware, install it on premises, and collect fees while the end‑user bears the ongoing cost. As one company advertises, “Don’t worry too much about buying expensive solar materials, just pay a small monthly fee and enjoy 24/7 power.”

**What alternative could deliver genuine energy independence?**

Critics argue that rent‑to‑own schemes would align payments with eventual ownership, allowing users to acquire the equipment after completing the agreed instalments. Once owned, electricity costs would drop dramatically, providing lasting relief for small enterprises.

**Why is ownership essential?**

Sunlight itself is free and abundant. The panels and batteries that capture that energy should ultimately belong to the people who rely on them, not to overseas investors seeking perpetual profit. The commentary calls on citizens, journalists and policymakers to question the logic of paying rent for a resource that is inherently public.

*Disclaimer: The views expressed are those of the author and do not necessarily reflect the official position of Legit.ng or any other organisation.*

Topics: #NEPA #Nigeria #energy #foreign investment #rent-to-own #solar subscription

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