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Assessing Urban Households’ Willingness to Pay for Standalone Solar Photovoltaic Systems: A Case Study of Lagos, Nigeria

Original scientific paper

Journal of Sustainable Development of Energy, Water and Environment Systems
ARTICLE IN PRESS (volume, issue and page numbers will be assigned later)
DOI: http://dx.doi.org/10.13044/j.sdewes.d7.0274
Anthony I. Ugulu , Clinton Aigbavboa
Department of Construction Management and Quantity Surveying, University of Johannesburg, Auckland Park, Johannesburg, South Africa

Abstract

Citizen participation would be crucial towards transforming the global electricity infrastructure. Household involvement would be particularly vital for nations with underdeveloped grid and widespread electricity outages like Nigeria. This study investigates urban households’ willingness to pay and participate in off-grid solar photovoltaic adoption in Lagos, Nigeria. Results reveal that households have an above average interest in photovoltaic generated electricity. This was the case irrespective of tenancy type. Age, income and education also influenced participation. Although overall willingness to pay was positive, it was higher in the presence of government support. The preferred rate of fiscal incentive support was between 50-60%. In addition, when made available and given the opportunity, many households would participate in the feed-in-tariff export scheme. The implications of the study are detailed and suggestions for increased participation presented. Findings point to the importance of regulatory reforms and political intervention using favourable monetary and non-fiscal
support incentives.

Keywords: Electricity supply, Solar photovoltaic systems, Willingness to pay, Contingent valuation, Households, Urban Nigeria.

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