The standard of living of the citizenry of any nation says a lot a lot about her economic stance. Since 2017, the rate of inflation has been on a continuous rise.
What is inflation?
Inflation refers to the general rise in the level of prices of goods and services in an economy over a period of time. This implies the reduction of purchasing power of the country’s unit currency and hence, loss of real value as a medium of exchange during trade internally and externally.
In January 2021, inflation rose to 16.5% from 15.8% in December of the previous year, marking the strongest annual rise in prices since April 2017. The cost of goods and services in the country continues to rise sporadically as Nigerians struggle to afford basic needs.
The general implication of inflation in a nation is the reduced purchasing power of the citizens and higher cost of goods and services. Numerous (if not all) goods and services which we were once able to afford have met a quantum increase.
The solar industry in Nigeria is no exception to the economic issues faced by the country. Following the increased cost of importation, many firms have met rising expenses primarily in equipment but also in transportation which may cause operational challenges.
However, the inflation rises also bring with them a huge opportunity that the solar industry can harness if firms are able to apply some ingenuity in the production and delivery of their service. Here is how the current environment can benefit solar companies in Nigeria and the population as a whole.
Continuous Rise in Demands for Energy
The need for constant and clean power for supply is on the rise worldwide. Nigeria is no exception. With the introduction of new technologies and firms, electricity is now a basic necessity in the lives of Nigerians.
Sequel to the vast and ongoing energy deficit, unreliable grid power and continuous rise in electricity tariffs the solar industry has a major part to play in keeping Nigerian homes and businesses running. It is at this time when their service is most needed and with some innovation they can benefit from the growing energy demand for solar whilst providing a quick and easy solution to the long-standing challenge of reliable power.
Solar Technology can help consumers hedge against inflation
Solar energy, unlike other forms of energy in Nigeria offers stable and fixed prices. These prices are not subject to constant change or deliberations within a body or government. For this reason, a choice on solar hedges users against fluctuation in prices and inflation.
Solar Energy is promising to be the major means of power from here onwards. Despite the economic concerns in the nation, the industry is growing strong as it offers Nigerians a safe, stable and economic investment in their power needs.
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