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Understanding Your Electricity Bill: How Solar Reduces Costs

Posted on July 6, 2024

A person looking at an electricity bill with a solar panel in the background

For many Nigerians, the monthly electricity bill is a source of frustration. The costs seem to rise unpredictably, and the service often doesn't justify the expense. But what if you could take control? Understanding your bill is the first step to reducing it, and a KRATOX solar system is the ultimate tool to achieve that.

Decoding Your Electricity Bill

A typical bill from a distribution company (DisCo) in Nigeria includes several components:

  • Energy Charge: This is the main cost, based on the amount of electricity you consumed in a month, measured in kilowatt-hours (kWh).
  • Fixed Charge: A set monthly fee you pay just for being connected to the grid, regardless of your consumption.
  • VAT: Value Added Tax applied to your total charges.
  • Other Fees: Sometimes, bills may include other adjustments or fees.

Your total bill is primarily driven by your consumption (kWh). The more you rely on the grid, the higher your bill.

How Solar Slashes Your Bill

A KRATOX solar power system attacks these costs at the source. Here’s how a typical hybrid system works to your financial advantage:

1. Priority 1: Power Your Home with the Sun

During daylight hours, your solar panels generate electricity. This power is used directly by your home's appliances. Every kilowatt-hour you generate is one you don't have to buy from the grid. This immediately and drastically reduces your "Energy Charge."

2. Priority 2: Charge Your Batteries

Once your home's immediate needs are met, any excess solar power is used to charge your battery bank. This stores free energy from the sun for later use.

3. Priority 3: Use Battery Power

In the evening, or when the grid goes out, your home automatically switches to the stored energy in your batteries. You continue to run your home on the free energy you captured during the day, further avoiding any charges from the grid.

4. Last Resort: The Grid

Only when your batteries are depleted and there is no sunlight will your system draw power from the grid (if it's available). By sizing your system correctly, you can reduce this reliance to a bare minimum, or even eliminate it entirely.

The Result: A Transformed Bill

With a properly sized KRATOX solar system, your monthly electricity bill can drop by as much as 90-100%. You are no longer a passive consumer subject to rising tariffs; you are an independent power producer. The savings are real, immediate, and they continue for the 25+ year lifespan of your system.

Ready to Shrink Your Bill?

Take control of your energy costs. Contact us today for a free analysis of your current electricity bills and a quote for a system that can virtually eliminate them.