By Maduka Nweke, [email protected]
Chief Executive Officer of Sorento Nigeria Limited, Gaurav Vaswani and Vinay Pataskar, the company’s General Manager are trudging through challenging times to ensure their flag flies higher in Nigeria.
Their company is at the forefront of supplying, selling, and installing solar energy solutions across Nigeria. The decision to enter this market was informed by the growing adoption of solar energy and its considerable business prospects.
Gaurav Vaswani elaborated that their foray into Nigeria was driven by a combination of financial and developmental motivations. “We observed a significant uptick in the demand for solar energy within Nigeria, presenting us with a valuable business oppourtunity. Our goal extends beyond mere financial gain; we aim to contribute to Nigeria’s economic progress. By delivering solar solutions, we strive to bolster our business while also supporting the broader economic growth of Nigeria.”
He acknowledged that while solar energy is increasingly valued in Nigeria, affordability remains a major obstacle. “Solar energy is recognized as a viable solution, particularly given the erratic nature of the national electricity supply and the soaring costs of traditional fuels like gas and diesel. However, the high initial investment required for solar systems poses a significant barrier. Despite the growing demand for reliable power sources, many Nigerians find solar energy economically out of reach.”
He estimated that nearly half of Nigeria’s population is aware of solar energy, thanks to exposure through international travel, social media, and various media channels. “Awareness is relatively high, but it doesn’t necessarily translate to widespread use. While many Nigerians understand the benefits of solar energy, the actual adoption rate remains low. A more robust push from regulatory bodies, such as the Nigerian Electricity Regulatory Commission (NERC), could facilitate a faster transition.”
Vaswani is hopeful that the NERC will play a supportive role in advancing solar energy. “We believe that the NERC will be supportive of solar energy’s growth. Implementing policies like solar registration and offering incentives for solar investments could significantly boost adoption rates. Currently, the absence of a structured integration system for solar energy into the national grid limits its potential.”
According to Vaswani, addressing the high cost of solar panels is crucial for broader adoption. “The economic landscape in Nigeria poses challenges for solar investments due to high costs and low disposable incomes. To foster greater adoption, government support is essential. Initiatives aimed at reducing economic disparities and improving disposable income could enhance access to solar technology.”
He clarified that solar panels are not manufactured within Nigeria at present. “The cost of local manufacturing remains prohibitively high due to expensive labor, land, and energy costs. As a result, importing panels is more cost-effective. While we do assemble panels locally, establishing a full-scale manufacturing facility is not currently feasible. However, if conditions improve, we may revisit the idea of local manufacturing in the future.”
While solar energy can support manufacturing equipment, Vaswani noted that it is not suitable as the primary power source. “Solar energy can serve as a valuable supplementary power source, helping to offset overall energy costs. However, relying solely on solar for manufacturing operations would be economically impractical due to the high costs involved.”
He said at the moment, Sorrento Nigeria Limited does not have physical outlets in South Eastern Nigeria but distributes its products nationwide through a network of agents and dealers. “This approach is currently more cost-effective. We remain hopeful that improvements in the business environment will eventually allow us to consider expanding into South Eastern Nigeria,” he said.