Cost Comparison: Solar Power vs Prepaid Electricity in Nigeria (2025)

Electricity costs in Nigeria are rising steadily, and with continued power outages and unreliable supply, more individuals and businesses are exploring alternative energy sources. Two major options dominate the conversation: solar power systems and prepaid electricity.

At PowerFlux Mall, we’re often asked, “Is solar really cheaper than NEPA prepaid electricity in Nigeria?” In this blog post, we’ll break down the cost differences between solar energy and prepaid electricity in Nigeria in 2025, helping you make the best choice for your power needs.

🔍 Understanding the Nigerian Power Landscape in 2025

As of 2025, electricity tariffs in Nigeria have been reviewed multiple times due to subsidy removals, inflation, and rising fuel costs. Households on prepaid meters are now paying ₦74 to ₦80 per kWh, depending on location and distribution company (DisCo).

Meanwhile, solar power—once seen as expensive—is becoming more affordable, with improved technology, longer-lasting batteries, and scalable installation options for homes and businesses.

💡 Breakdown of Prepaid Electricity Costs in Nigeria

Let’s assume a medium-sized household using 20 kWh of energy daily.

Daily cost: 20 kWh × ₦78 = ₦1,560
Monthly cost: ₦1,560 × 30 = ₦46,800
Annual cost: ₦46,800 × 12 = ₦561,600

🔋This doesn’t include generator fuel costs, which most households still rely on due to frequent blackouts. Adding generator use increases total electricity costs by another ₦10,000–₦30,000 monthly.

☀️ Breakdown of Solar Power Costs in Nigeria (2025)

A typical solar system setup for the same home usage (20 kWh/day) would include:

5kW Solar Inverter
8 × 550W Solar Panels
4 × 200Ah Batteries
Solar Charge Controller & Accessories

✅ Upfront Cost (Full Installation):

₦2.8 million – ₦3.2 million (depending on brand and battery type)

✅ Ongoing Maintenance:

Battery Replacement (every 4–6 years): ₦500,000+
Occasional service & cleaning: ₦20,000/year

After the initial cost, solar energy becomes free, with zero fuel and no daily kWh charges.

🔄 Cost Comparison Summary: Solar vs Prepaid

Expense Type	Prepaid NEPA (Annually)	Solar Power System (One-Time)
Daily Usage Cost (20kWh)	₦1,560	₦0 (after setup)
Monthly Total	₦46,800	₦0
Yearly Total	₦561,600	₦2.8M–₦3.2M (setup)
5-Year Cost Estimate	₦2.8M	₦3.2M (including maintenance)
Fuel Backup Needed	Often	Rarely

🔋 Long-Term ROI: Solar Wins

While the upfront cost of installing a solar system is higher, you break even in 5–6 years — and enjoy free power for the next 10–15 years, especially with lithium or tubular battery systems.

By contrast, prepaid electricity is a recurring expense that increases yearly with inflation and unreliable supply.

🏡 Additional Benefits of Solar Power

✅ Energy Independence – No reliance on PHCN or fuel queues
✅ Zero Noise – Unlike generators, solar runs silently
✅ Eco-Friendly – Reduces carbon footprint
✅ Low Maintenance – Minimal recurring costs
✅ Stable Voltage – Prevents appliance damage

🛠 Is Solar Right for You?

Solar is ideal if:

You want predictable, long-term savings
You live in an area with poor grid supply
You want to power essentials during outages
You’re tired of rising electricity bills

💬 Final Verdict: Solar or Prepaid?

If you’re focused on long-term cost savings, energy security, and appliance protection, solar power is the smarter investment in Nigeria today. Though the upfront cost is higher, your power becomes practically free after just a few years.