SOLAR CONNECTION FACILITY (SCF)

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The Central Bank introduced the Solar Connection Intervention Facility to complement the federal government's effort of providing affordable electricity to rural dwellers through the provision of long term low interest credit facilities to the Nigeria Electrification Project (NEP) pre-qualified home solar value chain players that include manufacturers and assemblers of solar components and off-grid energy retailers in the country. The solar connection Scheme of the federal government was launched as support for economic recovery in response to the COVID-19 pandemic and part of the Economic Sustainability Plan (ESP) to achieve the roll out of 5 million new solar-based connections in communities that are not grid connected. The program is expected to generate an additional N7 billion increase in tax revenues per annum and $10 million in annual import substitution.

Objectives

The objectives include:

1. To expand energy access to 25 million individuals (5 million new connections) through the provision of solar home systems (SHS) or connection to a mini grid;
2. To increase local content in the off-grid solar value chain and
3. To facilitate the growth of the local manufacturing industry; and incentivize the creation of 250,000 new jobs in the energy sector.

How to apply?

• An eligible company that meets the Nigeria Electrification Project (NEP) requirement is to submit a request to the Participating Financial Institution (PFI)
• The PFI is to conduct due diligence and obtain internal approval for the facility.
• The PFI submits request for approval and release of funds to CBN.