Technical insights.

Independent, quantitatively backed analyses. Each study sizes solar+storage for a representative business, anchored in real load data and using our own models to test the proposition.

The Opportunity for Solar+Storage for C&I Customers in Africa

The Opportunity for Solar+Storage for C&I Customers in Africa

The Opportunity for Solar+Storage for C&I Customers in Africa

Across Africa, access to affordable and reliable electricity remains out of reach for millions of homes and businesses. For the micro, small, and medium-sized enterprises (MSMEs) that generate at least two-thirds of formal jobs across the continent, poor power quality is not merely an inconvenience but a structural barrier to growth (1, 2). In 2025, 72% of Sub-Saharan businesses experienced outages averaging 13 hours per month, pushing thousands of commercial and industrial (C&I) customers to rely on diesel and gasoline generators (3).

In addition to poor power quality, businesses must contend with rising energy costs. In Nigeria, for example, some customers have seen electricity rates increase 258% since the early 2020s (4). Further, diesel costs rose 86% in the first half of 2026 (5). Battery energy storage costs, on the other hand, have fallen precipitously. When paired with cheap solar power, these converging factors make solar+storage a potential cost-effective alternative to gensets for resilient power (6–8).

Across Africa, access to affordable and reliable electricity remains out of reach for millions of homes and businesses. For the micro, small, and medium-sized enterprises (MSMEs) that generate at least two-thirds of formal jobs across the continent, poor power quality is not merely an inconvenience but a structural barrier to growth (1, 2). In 2025, 72% of Sub-Saharan businesses experienced outages averaging 13 hours per month, pushing thousands of commercial and industrial (C&I) customers to rely on diesel and gasoline generators (3).

In addition to poor power quality, businesses must contend with rising energy costs. In Nigeria, for example, some customers have seen electricity rates increase 258% since the early 2020s (4). Further, diesel costs rose 86% in the first half of 2026 (5). Battery energy storage costs, on the other hand, have fallen precipitously. When paired with cheap solar power, these converging factors make solar+storage a potential cost-effective alternative to gensets for resilient power (6–8).

Major cost-reductions in solar PV and battery storage now make solar+storage a financially attractive alternative to generators when relying on an often unreliable grid.

Major cost-reductions in solar PV and battery storage now make solar+storage a financially attractive alternative to generators when relying on an often unreliable grid.

Major cost-reductions in solar PV and battery storage now make solar+storage a financially attractive alternative to generators when relying on an often unreliable grid.

Markets like South Africa have seen a surge in homes and businesses adopting solar+storage (9), and the trend is spreading across the region (7). While our own studies in Sierra Leone and Nigeria show payback times of two to three and a half years, most companies operating in Africa are short on cash and lack easy access to capital. The business case for a particular project varies depending on several factors, such as the demand profile, electricity rate structure, and borrowing costs. Therefore, each case requires independent analysis using proprietary models.

The following studies look at representative hotels in Nigeria and Sierra Leone and compare resilient solar+storage systems to business-as-usual. Solar+storage system sizes are optimized to minimize energy costs over a 25-year lifecycle while providing resilience against grid outages. Each analysis is based on location-specific real-world data, including annual half-hourly load profiles, electricity tariffs and diesel costs, outage duration, solar resource, and financial rates. Sensitivity studies show how location or outage duration affect results like the lifecycle cost savings, payback period, and optimal system sizes. In addition to reporting the technical details, our reports synthesize the findings into high-level takeaways, walk through financing pathways and discuss project barriers.

Markets like South Africa have seen a surge in homes and businesses adopting solar+storage (9), and the trend is spreading across the region (7). While our own studies in Sierra Leone and Nigeria show payback times of two to three and a half years, most companies operating in Africa are short on cash and lack easy access to capital. The business case for a particular project varies depending on several factors, such as the demand profile, electricity rate structure, and borrowing costs. Therefore, each case requires independent analysis using proprietary models.

The following studies look at representative hotels in Nigeria and Sierra Leone and compare resilient solar+storage systems to business-as-usual. Solar+storage system sizes are optimized to minimize energy costs over a 25-year lifecycle while providing resilience against grid outages. Each analysis is based on location-specific real-world data, including annual half-hourly load profiles, electricity tariffs and diesel costs, outage duration, solar resource, and financial rates. Sensitivity studies show how location or outage duration affect results like the lifecycle cost savings, payback period, and optimal system sizes. In addition to reporting the technical details, our reports synthesize the findings into high-level takeaways, walk through financing pathways and discuss project barriers.

Case studies

Case studies

Case studies

Sources

  1. Endris, E., & Kassegn, A. (2022). The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sub-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia. Journal of Innovation and Entrepreneurship.

    https://doi.org/10.1186/s13731-022-00221-8

  2. Solis, B. (2025). Defying outages: The struggles and strategies of businesses facing unreliable electricity. Policy Indicators Brief. World Bank Group.

    http://documents.worldbank.org/curated/en/099859206252515733

  3. World Bank. (2025). Enterprise Surveys: Infrastructure indicators, Sub-Saharan Africa. World Bank Group.

    https://www.enterprisesurveys.org/en/data

  4. Nigerian Electricity Regulatory Commission. (2021, 2026). Tariff orders for Ikeja Electric: MYTO 2022 (Band A MD1, NGN 58.59/kWh from January 2022) and September 2026 supplementary order (NGN 209.50/kWh). NERC.

    https://nerc.gov.ng/wp-content/uploads/2022/05/MYTO%202022%20for%20IKEDC.pdf

    https://nerc.gov.ng/wp-content/uploads/2026/09/IE_HOLDCO_YSS_September_2026_093.pdf

  5. Hirvonen, K., Kosec, K., & Abay, K. (2026, July 6). How African economies are absorbing the 2026 oil price shock (so far). IFPRI Blog.

    https://www.ifpri.org/blog/how-african-economies-are-absorbing-the-2026-oil-price-shock-so-far/

  6. Rangelova, K., & Jones, D. (2025, December 11). How cheap is battery storage? Ember.

    https://ember-energy.org/latest-insights/how-cheap-is-battery-storage/

  7. Jones, D. (2025, August 26). The first evidence of a take-off in solar in Africa. Ember.

    https://ember-energy.org/latest-insights/the-first-evidence-of-a-take-off-in-solar-in-africa/

  8. Rangelova, K. (2026, August 12). Batteries have unlocked the era of anytime solar. Ember.

    https://ember-energy.org/latest-insights/batteries-have-unlocked-the-era-of-anytime-solar/

  9. Engineering News. (2026, June 19). Capacity of rooftop solar installed in South Africa has passed 8 GW mark. Creamer Media.

    https://www.engineeringnews.co.za/article/capacity-of-rooftop-solar-installed-in-south-africa-has-passed-8gw-mark-2026-06-19

The Opportunity for Solar+Storage for C&I Customers in Europe

The Opportunity for Solar+Storage for C&I Customers in Europe

The Opportunity for Solar+Storage for C&I Customers in Europe

Europe’s challenge looks very different. Solar is no longer scarce (1): in solar-heavy markets, rooftops and solar parks generate in the same hours and compete for the same prices, which pushes midday wholesale prices down (2, 3) and, increasingly, below zero. In 2025, prices were negative in about 6% of hours in France, Germany, the Netherlands and Spain (4), while German and Dutch solar output was worth only about half the average wholesale price (3, 5). Meanwhile, grid electricity remains expensive: in late 2025, mid-sized EU businesses paid €0.18 per kWh on average, excluding VAT, and €0.23–0.26 in the most expensive markets, Germany, Cyprus and Ireland (6), so every kilowatt-hour used on site is worth far more than one exported.

Regulation adds another layer. Network tariffs, taxes and support schemes differ by country (7–9). Feed-in arrangements are being scaled back in many markets: the Netherlands ends net metering for small connections in 2027 and France cut rooftop feed-in tariffs in 2025 (10–13). Grid connections are rationed, with queues in at least 16 EU countries (14, 15), and policy keeps changing (9, 10, 16). A system sized for last year’s rules can be the wrong size under this year’s. For commercial and industrial customers, the question is less how much solar a roof can hold and more how to match solar and storage to the site’s own demand, the tariff it actually pays, and the policy it is likely to face over the system’s lifetime.

Europe’s challenge looks very different. Solar is no longer scarce (1): in solar-heavy markets, rooftops and solar parks generate in the same hours and compete for the same prices, which pushes midday wholesale prices down (2, 3) and, increasingly, below zero. In 2025, prices were negative in about 6% of hours in France, Germany, the Netherlands and Spain (4), while German and Dutch solar output was worth only about half the average wholesale price (3, 5). Meanwhile, grid electricity remains expensive: in late 2025, mid-sized EU businesses paid €0.18 per kWh on average, excluding VAT, and €0.23–0.26 in the most expensive markets, Germany, Cyprus and Ireland (6), so every kilowatt-hour used on site is worth far more than one exported.

Regulation adds another layer. Network tariffs, taxes and support schemes differ by country (7–9). Feed-in arrangements are being scaled back in many markets: the Netherlands ends net metering for small connections in 2027 and France cut rooftop feed-in tariffs in 2025 (10–13). Grid connections are rationed, with queues in at least 16 EU countries (14, 15), and policy keeps changing (9, 10, 16). A system sized for last year’s rules can be the wrong size under this year’s. For commercial and industrial customers, the question is less how much solar a roof can hold and more how to match solar and storage to the site’s own demand, the tariff it actually pays, and the policy it is likely to face over the system’s lifetime.

Case studies

Case studies

Case studies

Sources

  1. Rangelova, K. (2026, August 12). Batteries have unlocked the era of anytime solar. Ember.

    https://ember-energy.org/latest-insights/batteries-have-unlocked-the-era-of-anytime-solar/

  2. European Union Agency for the Cooperation of Energy Regulators. (2026). Key developments in European electricity and gas markets: 2026 Monitoring Report. ACER.

    https://www.acer.europa.eu/monitoring/electricity-gas-key-developments-2026

  3. PBL Netherlands Environmental Assessment Agency. (2026, April 16). Advies voor subsidieparameters definitieve correctiebedragen 2025. PBL.

    https://www.pbl.nl/downloads/pbl-2026-advies-definitieve-correctiebedragen-2025-6006pdf

  4. International Energy Agency. (2026, February 6). Electricity 2026: Prices. IEA.

    https://www.iea.org/reports/electricity-2026/prices

  5. 50Hertz, Amprion, TenneT & TransnetBW. (2026). Marktwertübersicht: EEG market values for solar, 2025. Netztransparenz.de.

    https://www.netztransparenz.de/de-de/Erneuerbare-Energien-und-Umlagen/EEG/Transparenzanforderungen/Marktpr%C3%A4mie/Marktwert%C3%BCbersicht

  6. Eurostat. (2026, May 8). Non-household electricity prices in 2nd half of 2025: -3.5%. European Commission.

    https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20260508-2

  7. European Commission. (2025, July 2). Guidelines on future-proof network charges to reduce energy system costs, C(2025) 4010. European Commission.

    https://energy.ec.europa.eu/document/download/8789f345-a6ae-46b6-97d2-a7366e516cdc_en?filename=C_2025_4010_1_EN_annexe_acte_autonome_cp_part1_v4.pdf

  8. European Union Agency for the Cooperation of Energy Regulators. (2025, March 26). Getting the signals right: Electricity network tariff methodologies in Europe. ACER.

    https://www.acer.europa.eu/sites/default/files/documents/Reports/2025-ACER-Electricity-Network-Tariff-Practices.pdf

  9. European Commission. (2026, July 17). Proposal amending Regulation (EU) 2019/943 as regards future-proofing electricity bills in the Union, COM(2026) 600 (proposal). Council of the European Union.

    https://data.consilium.europa.eu/doc/document/ST-12071-2026-INIT/en/pdf

  10. Eerste Kamer der Staten-Generaal. (2024, December 17). Wet beëindiging salderingsregeling aangenomen. Eerste Kamer.

    https://www.eerstekamer.nl/nieuws/20241217/wet_beeindiging_salderingsregeling

  11. Rijksoverheid. (n.d.). Salderingsregeling stopt in 2027. Government of the Netherlands. Accessed 1 October 2026.

    https://www.rijksoverheid.nl/themas/klimaat-milieu-en-natuur/energie-thuis/salderingsregeling

  12. Commission de régulation de l’énergie. (2025). La CRE publie les nouveaux tarifs et primes pour les installations photovoltaïques implantées sur bâtiment, hangar ou ombrière d’une puissance crête installée inférieure ou égale à 500 kWc. CRE.

    https://www.cre.fr/actualites/nos-lettres-dinformation/la-cre-publie-les-nouveaux-tarifs-et-primes-pour-les-installations-photovoltaiques-implantees-sur-batiment-hangar-ou-ombriere-dune-puissance-crete-installee-inferieure-ou-egale-a-500-kwc.html

  13. SolarPower Europe. (2025, December 11). New report: EU hits 2025 solar target but market contraction puts 2030 goal at risk. SolarPower Europe.

    https://www.solarpowereurope.org/press-releases/new-report-eu-hits-2025-solar-target-but-market-contraction-puts-2030-goal-at-risk

  14. European Commission. (n.d.). European grids. Directorate-General for Energy. Accessed 1 October 2026.

    https://energy.ec.europa.eu/topics/infrastructure/european-grids_en

  15. Netbeheer Nederland. (2026, April). Stand van de uitvoering 2025. Netbeheer Nederland.

    https://www.netbeheernederland.nl/sites/default/files/2026-04/stand_van_de_uitvoering_2025.pdf

  16. Bundesgesetzblatt. (2025, February 24). Gesetz zur Änderung des Energiewirtschaftsrechts zur Vermeidung von temporären Erzeugungsüberschüssen (BGBl. 2025 I Nr. 51). Federal Ministry of Justice.

    https://www.recht.bund.de/bgbl/1/2025/51/VO.html

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