The Financial Officer’s Guide to Solar Investment: How to Justify the Switch in Your Next Board Meeting

Photo credit: Syda Production

As Nigeria’s energy costs soar and many businesses face growing pressure to align with sustainability goals, financial officers play a central role in the energy transition. But switching to solar isn’t just about going green but also about making a financially smart, risk-mitigating decision that future-proofs your business.

Financial officers are responsible for managing a company’s finances, from budgets, forecasts, to risks, and return on investment (ROI). So, how do you justify a major capital shift like solar to a board focused on profitability?

This guide breaks it down into five strategic points to help you present a solid business case for solar – complete with data, risk analysis, and long-term value.

1. Start With the Financial Case

Begin with the numbers. Nigeria’s diesel prices are a heavy burden on operational costs. According to the National Bureau of Statistics (NBS), the average retail price of diesel rose to N1,415.06 per litre in April 2024, a 66.29% increase from the previous year (NBS, 2024).

For companies consuming thousands of litres each month, this is unsustainable.

READ ALSO: Solar Energy and ESG: What Every Nigerian Business Needs to Know Before 2026

Now compare that with the long-term, predictable cost of solar. For instance, a N120 million solar energy system could save a business over N200 million in diesel costs within 10 years.

That’s a strong Total Cost of Ownership (TCO) case which means lower operating costs, and better budget control.

2. Show the Long-Term ROI and the Payback Timeline

Unlike diesel, solar systems typically pay for themselves in 3 to 6 years, depending on your energy consumption and the size of the system. After the payback period, it’s almost free energy.

Also, solar investments qualify for capital allowances under Nigeria’s tax laws, which means financial officers can capitalize the system and depreciate it over time, therefore improving cash flow.

For businesses that prefer minimal upfront costs, Power Purchase Agreements (PPAs) allow you to pay monthly for energy (often lower than your diesel spend) with zero CapEx.

3. Highlight Risk Mitigation: Fuel Prices and Downtime

CFOs understand risk, and energy volatility is one of the biggest threats to operational stability.

Solar acts as an energy hedge. With diesel prices fluctuating and grid outages still common, a solar-hybrid system ensures business continuity. That means reduced downtime, avoided revenue losses, and protection from reputational damage.

Use real business cases from sectors like manufacturing, retail, and agriculture that have adopted solar to safeguard operations. These examples can bolster your pitch with credibility.

4. Demonstrate ESG Value And Tie It to Profit

The board isn’t just looking at profit anymore but also at Environmental, Social, and Governance (ESG) metrics. Solar adoption ticks both boxes: operational savings and a cleaner carbon footprint.

Adding solar energy to your ESG report improves your company’s sustainability profile, making it more attractive to investors, partners, and regulators.

Make sure your board deck includes CO₂ emissions avoided, SDG alignment (especially SDG 7: Affordable & Clean Energy) and marketability benefits (for export, compliance, etc.)

5. Tailor the Investment Model to Fit Business Needs

The best part? CFOs have flexibility in how they fund solar, from CapEx model which is full ownership with long-term ROI, a lease-to-own which is spread over 3–5 years, and a Power Purchase Agreements (PPA), which includes no upfront payment, and pay monthly for energy consumed.

Havenhill Synergy works with businesses to create custom solar investment structures based on financial goals.
Your next board meeting is an opportunity to lead the energy transition with confidence. Transiting to solar is a green initiative that is a financially sound, strategically smart decision for the long term.

Need help building a board-ready solar proposal? Havenhill’s team can work with you to prepare the numbers, the presentation, and the system design. Contact us today.