Renewable Energy Report

Renewable energy technologies are sustainable solutions to generate power and reduce the impact of fossil fuels. Some popular renewable energy sources include Wind energy, Solar energy, Biomass and Hydropower. However, Nigeria's top choice is solar energy due to the country’s closeness to the equator which amounts to an average solar radiation of about 5.5 kWh/m2 daily.

Understanding consumer attitudes and behaviors is critical for the energy sector's growth as the world increasingly embraces renewable energy. Our recent survey, conducted to gauge household's readiness to adopt renewable energy, provides valuable insights into current energy use, future adoption likelihood, barriers to entry, and motivating factors. This analysis presents the key findings from the survey and offers recommendations for both consumers and businesses in the renewable energy space. It is worth noting that due to concerns around initial setup, the most prevalent renewable energy choice in Nigeria remains Solar Energy with few industrial exceptions.

Current Primary Energy Source

The majority of households (77%) still rely on the national grid as their primary source of energy. However, the significant 13% already using solar energy suggests growing confidence in renewable sources. While the reliance on generators (7.5%) remains due to frequent grid failures, it's clear that alternative energy solutions are becoming increasingly attractive, especially as solar installations grow in number.

This trend represents an excellent opportunity for companies in the solar industry. Addressing the needs of the 7.5% using generators allows businesses to position solar energy as a cleaner, more cost-effective alternative, particularly in areas with unreliable grid connections.

Likelihood of Adopting Renewable Energy in the Next 12 Months

The survey shows a strong inclination toward renewable energy adoption, with 58.3% of respondents indicating they are "very likely" to adopt renewable energy within the next 12 months. An additional 23.1% are "somewhat likely," showing that over 80% of respondents are open to making the shift.

Companies can capitalize on this by offering incentives or promotional packages to accelerate adoption. With most consumers showing interest, marketing campaigns highlighting ease of use, cost-effectiveness, and reliability could further nudge those undecided or neutral (15.1%).

Main Barriers to Adopting Renewable Energy

The top barrier to renewable energy adoption is the high initial cost, reported by 44% of respondents. Other significant challenges include maintenance concerns (16.7%) and the availability of reliable products and services (17.3%). A smaller percentage (8.5%) indicated a lack of information or awareness, suggesting that while people are aware of renewable energy, the practical barriers hold them back.

To overcome this, companies should consider offering flexible financing options such as pay-as-you-go or leasing models, which can lower the initial cost burden. Additionally, educating consumers about long-term savings, simplified maintenance plans, and ensuring high product quality with strong warranties can alleviate concerns about reliability and upkeep.

Motivating Factors for Switching to Renewable Energy

The primary motivator for switching to renewable energy is long-term cost savings, as indicated by 43.7% of respondents. Energy independence and reliability are also strong motivating factors for 28.1%, while only 12.1% were motivated by environmental concerns, revealing that practical benefits outweigh environmental motivations for most households.

Solar and other renewable energy providers should focus on messaging around financial savings, especially highlighting how renewable energy can lead to lower monthly utility bills. Additionally, emphasizing energy independence—particularly in regions with frequent power outages—could further drive adoption.

This survey reveals a strong potential market for renewable energy, with over 80% of respondents showing a likelihood to switch to these sources within the next year. The main barrier to adoption remains the high initial cost, which can be mitigated through innovative financing and promoting the long-term cost savings of renewable energy systems.

For businesses in the renewable energy sector, this is an opportune time to engage consumers with targeted messaging that addresses their concerns and highlights both the financial and reliability benefits of switching. Offering affordable, reliable, and easy-to-maintain solutions can enable companies to drive the next wave of renewable energy adoption in households. This approach addresses key consumer concerns and makes renewable energy more accessible, paving the way for broader acceptance and use.

Want to unlock deeper consumer insights and drive more informed business decisions? Our consumer insight analysis tools provide you with the data you need to stay ahead in the renewable energy market. Visit https://versus.africa/demo today to learn how we can help your business capitalize on the growing interest in renewable energy adoption.