IONIR INTEGRALPower & telecom engineering

Renewable Energy

Solar-hybrid vs diesel for telecom sites in Nigeria: how to calculate payback

A practical method for comparing diesel-only, grid + diesel and solar-hybrid power on a telecom site — with a worked example you can adapt to your own numbers.

Solar-hybrid power system for an industrial site

For tower companies, power is the largest operating cost on most off-grid or weak-grid sites. Solar-hybrid systems are now common, but the decision should be based on a calculation, not a brochure. Here is the method we use.

Step 1: Establish the true cost of diesel

The cost of diesel power is more than the pump price. For each site, add up:

  • Fuel: litres per month × delivered price per litre (including haulage)
  • Losses: pilferage and reconciliation gaps — often significant on remote sites
  • Maintenance: servicing every few hundred run-hours, plus overhauls
  • Replacement: generator life shortened by long daily run-hours

Divide the monthly total by the energy delivered (kWh) to get your cost per kWh. This number is the benchmark everything else must beat.

Step 2: Model the alternatives

Compare three scenarios over 10 years:

  1. Diesel only — today's cost, escalated for fuel price changes.
  2. Grid + diesel — grid supply for available hours, generator for the rest. Requires a grid connection (see our grid connection guide).
  3. Solar-hybrid — PV and batteries carry most of the load; the generator (and grid, if present) fill gaps.

Step 3: A worked example (illustrative numbers)

The figures below are illustrative only — replace them with your own site data.

  • Site load: 3 kW continuous ≈ 72 kWh/day
  • Diesel-only cost: if the all-in cost is equivalent to $0.60/kWh → about $43/day, or roughly $15,800/year
  • Solar-hybrid design covers 70% of energy; the generator covers 30% → diesel cost falls to about $4,700/year, plus maintenance on the solar system
  • If the hybrid system costs $35,000 installed and saves around $10,000/year after maintenance, simple payback is about 3.5 years

Battery replacement during the system's life must be included, and grid availability changes the result substantially: a site with good grid hours may get a faster payback from a grid connection alone.

Step 4: Check the non-financial factors

  • Uptime: fewer generator failures means fewer outages and SLA penalties.
  • Security: less fuel on site means less theft risk.
  • Emissions reporting: increasingly required by international investors and tower-company shareholders.

The practical answer

On many sites the best result is not one technology but a sequence: connect to the grid where a feeder is available, add solar and storage to cover grid gaps, and keep the generator as last-resort backup. We model all three for you from your site data. Request a site assessment.

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