FG Introduces Solar Power Tariff for Public Institutions

The Federal Government is introducing a new payment system requiring public institutions benefiting from solar power projects to pay a sustainability tariff. This initiative aims to prevent the deterioration of solar installations after significant public investment.

The Rural Electrification Agency (REA) announced this during the unveiling of the Renewable Assets Management Company (RAMCO) on Wednesday. REA Managing Director, Aliyu Abba Abubakar, stated that the government had to rethink its approach due to the lack of funding for maintenance, which had led to the deterioration of some solar installations.

An assessment revealed that only three out of seven facilities from the Energising Education Programme remained in usable condition. The new system will require institutions to contribute towards the upkeep of the installations, with RAMCO managing the assets, metering consumption, and collecting payments.

Abubakar emphasized that this charge should be seen as a redirection of existing energy budgets to ensure reliable electricity rather than an additional expense.