Nigeria's $750M DARES Subsidy Program For Distributed Solar Solutions

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Despite being Africa’s largest economy, Nigeria faces a significant energy access challenge, with nearly 86 million people lacking reliable electricity. The country’s dependence on an unstable grid and costly fossil fuels has made off-grid renewable solutions critical for expanding energy access.

Backed by the World Bank, Nigeria’s $750 million Distributed Access through Renewable Energy Scale-up (DARES) program aims to expand electricity access through decentralized renewable energy solutions, particularly in rural and underserved areas. By prioritizing solar-powered mini-grids and standalone home systems, the initiative is set to redefine the country’s energy landscape.

Expert Guidance from REA

DARES, led by the Rural Electrification Agency (REA) in collaboration with the Federal Ministry of Power, seeks to address this issue by accelerating solar energy deployment across long-underserved communities.

Of the program’s $750 million budget, $300 million is allocated specifically for distributed solar energy solutions, signaling the government’s commitment to off-grid electrification. The funding will support the development of mini-grids and standalone solar home systems, reducing reliance on traditional energy sources while promoting sustainable alternatives.

One of the key participants in the DARES program is d.light, a global leader in solar energy solutions with a strong track record in expanding energy access across Africa and Asia. 

Economic and Social Impact

Beyond electrification, DARES is expected to drive economic growth by fostering job creation, improving access to essential services, and strengthening local industries. By integrating renewable energy solutions into communities, the initiative aims to:

  • Enhance access to healthcare and education through reliable power supply.
  • Create new job opportunities in the renewable energy sector, including system installation, maintenance, and operations.
  • Support local manufacturing and workforce training, ensuring long-term sustainability in the energy transition.

Ensuring High Standards for Renewable Energy Solutions

DARES will enforce strict technical and quality standards for participating companies, ensuring the deployment of high-performance, durable solar components, including panels, inverters, and batteries. Additionally, companies that establish local assembly or manufacturing facilities, implement workforce training programs, and prioritize affordability will gain a competitive advantage in the bidding process.

Environment + Energy Leader