Total funding available for the sub-component = US$100 million

The SHS sub-component is structured to reward successful deployments of solar technologies, ensuring effective and efficient implementation of the systems. The grants are designed to promote the deployment of SHSs across various scales for households and MSMEs in hard-to-reach or low-income segments. The program features:

Supply-side subsidies: These are designed to help off-grid energy access companies scale operations into hard-to-reach, unserved and underserved areas by providing a results based financial incentive for the deployment of solar home systems. The purpose is to bridge the energy access gap rural unserved and underserved Nigeria with Tier 1 and 2 solar solutions.

SHS Supply Side Subsidy Achievements (As at November 27th, 2025)

Interested applicants begin by registering via the REA–DARES Stand-Alone Solar portal to receive credentials to access the Odyssey platform where all programme documentation, guidelines, templates, and qualification requirements needed for participation in the SHS Supply-Side Subsidy are provided.

After submitting all required materials on Odyssey, applications undergo technical and administrative evaluation, followed by approvals or no-objection from the relevant authorities. Successful companies then execute a Grant Agreement with the REA, formally entering the SAS–SHS program.

Once implementation begins, companies submit deployment claims through the CRM supported by system serial numbers, installation evidence, and remote monitoring data. Claims are first reviewed internally for completeness and compliance before undergoing phone, field and system-level verification conducted jointly by the Independent Verification Agent (IVA) and the Grant Administrator (GA). A disbursement recommendation is produced after this process for review and approval by the PMU and Finance, after which funds are disbursed to the company based on verified outcomes and the applicable subsidy structure.

S/N	SUBJECT	CRITERION	EVIDENCE TO BE PROVIDED
1.	Company Information	Existence of applicant for at least one year as of the time of completion of application form (in or outside of Nigeria).	Certificate of Incorporation Memorandum and Articles of Association Evidence of annual returns filings with the CAC Form CAC 7 – Particulars of Directors
		Information on the type of application - Single, Joint venture, Consortium.	For a JV or Consortium, power of attorney and JV agreement
		Details on the company (Name, Registration details, Address, Organizational structure, board members, year of establishment etc.).	Organizational chart Names and CVs of board members
		Compliance with regulatory and statutory requirements.	Current company Tax Clearance Certificate (TCC). VAT Registration Certificate Certificates of VAT remittances Certificate of compliance with Pension Act 2004 Evidence of remittance to Pencom Evidence of payment contribution to Industrial Training Fund (ITF)
2.	Financial Information	Information on how much capital (debt and/or equity) available to invest with evidence. Company must have at least 30% of equity (own or investor) requirement net of grant sources available to invest now. Company must indicate the amount to be invested in the SHS business with evidence (bank statement, Legal agreement, Loan agreement).	Audited Financial statements for the last 3 years Loan agreements Promissory Notes Any document showing evidence on available financial resources
3.	Customer Tracking and Value Chain	Evidence that there are strategic value chain partners. Applicants must be able to demonstrate the process of tracking customers. Also information on pre and post sales service	Agreements with value chain partners Detailed process of identifying and tracking customers (System serial number, mechanism of tracking) Details on nature and duration of warranty of the systems Details on Customer service support for customers
4.	Operational scale	The applicant has the ability to meet the minimum deployment target of 150units/month	12months historical sales data Sales forecast of the company for at least 24 months Details on states in which company is operational and plans to
5.	Experience and Skills	The applicant has experienced and skilled staff in the SHS/off grid business	Number of years of company in SHS business Details of experience with gender related aspects of the off grid market (training for female employees, outreach and support to female market segment through tailored products and information provision on SHS/off -grid technologies) Initiatives taken to enhance engagement of gender
6.	Quality Verification	Evidence that the nominated product have the right certificates and test reports	Nomination of solar home systems of 6Wp or larger Specifications of products/systems nominated Type of battery utilized in the product/system Lighting Global certification OR in the case of component -based systems other corresponding documents
7.	Environmental and Social	The Applicant is compliant with the NEP’s Environmental and Social Management Safeguards Applicant has a track record on E&S compliance shown by no environmental or labor violation or fines	Human Resources Policy Occupational Safety & Health Policy/ Guideline Battery Collection/Recycling Policy End User/ Customer Engagement Plan An MOU with a battery recycler or a PRO certificate with a battery up-taker registered with NESREA Letter of good E&S standing for the past 3 years Gender Inclusion Plan

Total funding available for the sub-component = US$150 million

This sub-component focuses on the deployment of higher-capacity standalone solar systems tailored to meet the energy needs of specific productive entities such as economic hubs, MSME clusters, and agro-processing zones. These solutions look to provide clean, reliable power to businesses that are heavily reliant on fossil fuel power generation sources. To address affordability and improve access, the program will introduce energy-as-a-service and long term lease to own models, which will cut out or minimize up-front costs allowing for power vending and payment over an agreed upon timeframe.

SFB TARGET SEGMENTS

Application and Qualification

The Solar for Business targets MSMES clusters and Economic Hubs such as markets, plazas, and business centres using 1-10kVA solar systems.

Grant Agreement Signing

Agro-Processing Zones such as Farms and Processing facilities requiring 1-100kVA systems.

Interested developers begin by registering through the REA–DARES Stand-Alone Solar portal to obtain credentials for the Odyssey platform, where all programme guidelines, eligibility criteria, system-sizing rules, and benchmark pricing for the Solar for Business (SFB) window are provided.

Developers proceed to identify and validate MSME clusters or agro-processing zones, conduct energy audits, determine system sizes approved under the programme (1–10 kVA for MSMEs and up to 100 kVA for agro-processing), and compile required documentation for submission. All applications undergo technical and commercial evaluation, followed by approvals or no-objection from the relevant authorities. Successful developers sign a Grant Agreement with the REA, formally commencing participation in the SFB window.

During implementation, developers install approved systems equipped with IoT-enabled remote monitoring, vending functionality, and GPS tagging, ensuring compliance with the program’s technical and clustering requirements. Deployment claims are then submitted through the CRM with installation evidence and performance data. The Independent Verification Agent (IVA) and Grant Administrator (GA) jointly conduct system-level verification, through sampling, CRM checks, cluster validation, and remote monitoring, before any portion of the 50% CAPEX-based subsidy is disbursed (40% at installation/commissioning, and 10% after usage-criteria verification). Once a No-Objection and relevant approval is issued by the relevant authorities, subsidy funds are released to the company in line with the results-based financing structure.

Total funding available for the sub-component = US$50 million

The Productive Use of Energy (PUE) subcomponent aims to improve the affordability and accessibility of high-quality solar-powered equipment and appliances that enhance productivity, support income generation, and stimulate economic activity for small holder farmers and MSMEs. The window prioritizes mature, market-ready technologies, such as solar irrigation solar cooling, processing, communications/telephony and electric mobility infrastructure. This subcomponent will be implemented with a results based financing model, the PMU has benchmarked the cost of these productive use equipment’s and appliances to predetermine costing, subsidies will be percentages of the benchmark costs.

Program Scope & Eligible Technologies

To ensure sustainability and high development impact, the program is being rolled out in phases, beginning with mature technologies that have established market demand and clear productivity gains.

Applicable Technologies

These technologies are selected based on strong market activity, high potential for income generation, and availability of quality assurance frameworks. They include:

Agro-Processing

Milling machines
Grinding machines

Agricultural Irrigation

Solar surface pumps
Solar submersible pumps

Cold Storage Solutions

Solar cold rooms
Solar freezers

Electric Mobility Infrastructure

EV charging stations
Battery swap technology for 2 and 3 wheelers

Emerging Technologies

Solar Kiosks
Rural Telephony

These technologies will undergo further quality validation and market readiness assessments before widespread deployment.

Interested applicants begin by registering via the REA–DARES Stand-Alone Solar portal to obtain Odyssey platform access, where all guidelines, eligibility criteria, benchmark pricing, and application templates for the Productive Use of Energy (PUE) window are provided.

Applicants then prepare and submit proposals in line with the programme’s quality assurance, certification requirements, and subsidy framework. Submissions are evaluated for technical compliance, pricing alignment, and consistency with PUE objectives. Once approvals or no-objection are secured, successful applicants execute a Grant Agreement with the REA, formally onboarding them into the PUE window.

During deployment, companies must install only certified, pre-approved appliances integrated with smart inverters and remote monitoring systems. Deployment claims are submitted via the CRM or approved templates and undergo review for completeness and compliance. Verification is jointly carried out by the Independent Verification Agent (IVA) and Grant Administrator (GA), using sampling, documentation checks, and system-level assessments, before any portion of the subsidy (up to 50% of benchmarked pricing) is disbursed. Once a No-Objection and necessary approval is issued from the relevant authorities, subsidy funds are released to the company in line with the results-based financing structure.

Primary Verification

Independent Verification Agent

Independently conduct phone and field verifications on claims submitted by grantees
Report and follow up on grievances that may be discovered during the course of verification

Independent Verification Agent

Online mode of verification, through GPS triangulation and system interconnectivity or monitoring of payment data received through the Customer Relationship Management (CRM) Tool

Secondary Verification

Periodic Audits by Internal and External Auditors

Impact Assessment surveys by M&E Specialist

Random Spot Checks and Testimonials

Odyssey Verification

Applicable to systems which have CRM linked to the odyssey platform, real-time verification of submitted claims will be carried out by the Grant Administrator

Phone Verification

Applicable to meters with APIs linked with Odyssey, as well as meters not linked;
Customers are contacted via phone and interviewed by the IVA to determine to verify meter connections

Field Verification

Applicable to systems which have CRM linked with Odyssey, as well as systems not linked;
IVA visits sites to verify claim submitted by developer

Overview