The price of lithium-ion batteries surged to a record high in 2022, leading to higher prices in electricity-starved markets like Nigeria.
Operators say it would have been easier on consumers and boosted investors’ confidence if the government considers reducing or removing the 20 percent duty on batteries.
The duty on the battery is not the only cost that solar operators are faced with. From a zero percent duty in 2018, the Nigerian Customs Service imposed a 5 percent duty and a 5 percent Value Added Tax (VAT) on solar panels coming into the country.
The 20 percent duty is however the highest and most impactful, giving the importance of batteries to a sustainable solar energy market. Generally, solar systems do not require batteries. This is because solar panels generate energy that an inverter can convert into AC power that a home can use to meet or supplement its energy…
20% lithium battery duty slows solar energy growth
