Why solar power is cheaper than grid

When you use grid power from a monopoly distributor you support a gargantuan edifice that consists of more than 10 companies and organisations. Key among them are government (through VAT), fuel importers, thermal independent power suppliers, GDC, KenGen, Ketraco, ERC, Rural Electrification, Warma, Kenya Power and a gamut of Power contractors.

The economic cost per unit of energy produced by an efficient solar system is conservatively Sh2 per KWh (Total cost of a 1-kW the system divided by total KWh produced by the system in its lifetime). The challenge has always been the upfront cost of system acquisition. But this is being addressed by innovative financial engineering where financial institutions and saccos design packages for a client to pay in instalments.

Full article: The Star

 


 

Print Friendly, PDF & Email