The Benefits of Energy Efficient Appliances for SMEs in Nigeria

Use energy-efficient appliances to save money

Energy-efficient appliances are devices that use less electricity than conventional ones, such as refrigerators, freezers, air conditioners, fans, lighting, washing machines, dryers, and computers.
These appliances can help reduce electricity consumption, save money, and protect the environment. In this article, we will discuss how energy-efficient appliances can significantly reduce electricity consumption, outline the financial savings over time by using appliances with lower energy consumption, and provide some tips and resources for choosing and using energy-saving appliances in Nigeria.For example one of the most energy-intensive appliances in a business is the air conditioner (AC). A conventional AC can consume up to 450 kWh of electricity per year, while an energy-saving AC can consume as little as 150 kWh per year. This means that an energy-saving AC can save you up to 30% of electricity costs over 1 year.
Here is a table comparing the energy efficiency of a conventional AC and an energy-saving AC:As you can see, the energy-saving AC consumes much less electricity than the conventional AC. That means you are saving at least 50,000  if you are running your AC while on genenerator, and more than 70,000 if you switch to solar as well. In 5 years, you will have saved N352,000 by making these simple choices.

How energy-efficient appliances can significantly reduce electricity consumption?

Electricity consumption in Nigeria is growing rapidly due to population growth, urbanization, industrialization, and increased demand for services and comfort. According to the World Bank, Nigeria consumed 24.72 billion kWh of electricity in 2016, which was equivalent to 113 kWh per capita. However, this level of consumption is still low compared to the global average of 3,127 kWh per capita in 2016.
Moreover, Nigeria faces a huge gap between electricity supply and demand, resulting in frequent power outages and reliance on petrol and diesel generators. The Nigerian Electricity Regulatory Commission (NERC) estimated that the peak demand for electricity in Nigeria was 28.8 GW in 2020, while the available generation capacity was only 12.5 GW.

The average person or business in Nigeria consumes around 150 kWh or 400 kWh of electricity per year, respectively which is much lower than the global average. However, your energy consumption may be higher or lower depending on your lifestyle, the region you live in, or the type of business you operate. Air conditioners, refrigerators, fans, lighting, and water heaters are some of the appliances that contribute to the most energy consumption in households and businesses in Nigeria.

One way to address this challenge is to improve the energy efficiency of appliances and equipment used in households and businesses. Energy efficiency means using less energy to provide the same or better service or output.  Energy-efficient appliances can reduce the amount of electricity needed to perform a specific function, such as cooling, heating, lighting, or washing. For example, an energy-efficient refrigerator can use up to 60% less electricity than a conventional one. An energy-efficient air conditioner can use up to 50% less electricity than a conventional one. An energy-efficient LED bulb can use up to 80% less electricity than an incandescent bulb.

By using energy-efficient appliances, households, and businesses can reduce their electricity consumption and bills, as well as their dependence on petrol, diesel generators, and the grid. This can also help reduce greenhouse gas emissions and air pollution from fossil fuel combustion.

The financial savings over time by using appliances with lower energy consumption

Using energy-efficient appliances can also result in significant financial savings over time for households and businesses. The initial cost of purchasing an energy-efficient appliance may be higher than a conventional one, but the lower operating cost will pay back the difference in a few years or even months. The payback period depends on several factors, such as the price difference between the two appliances, the electricity tariff, the usage pattern, and the lifetime of the appliance.
To illustrate this point, let us compare two refrigerators with different energy efficiency ratings:

First is the LG InstaView Door-in-Door Refrigerator (GSX961MCQW): This refrigerator has an A+ energy efficiency rating and consumes 150 kWh per year. The price is N450,000.

The second is a Samsung 4-Door Flex French Door Refrigerator (RF28R7351SR): This refrigerator has a D energy efficiency rating and consumes 450 kWh per year. The price is N400,000.

Assuming that both refrigerators have the same capacity (250 liters), lifetime (15 years), and usage pattern (24 hours per day), we can calculate the cumulative savings from using the LG InstaView Door-in-Door Refrigerator instead of the Samsung 4-Door Flex
The annual electricity cost of running the LG InstaView Door-in-Door Refrigerator is 150 kWh * N6.63/kWh = N994.50. The annual electricity cost of running the Samsung 4-Door Flex French Door Refrigerator is 450 kWh * N6.63/kWh = N3038.50.

So, the annual savings from using the LG InstaView Door-in-Door Refrigerator instead of the Samsung 4-Door Flex French Door Refrigerator is N3038.50 - N994.50 = N2044.

Over a period of 15 years, the cumulative savings would be 15 years * N2044/year = N30660.
In addition to the electricity savings, the LG InstaView Door-in-Door Refrigerator also has a higher resale value than the Samsung 4-Door Flex French Door Refrigerator. This means that the total financial savings from choosing the LG InstaView Door-in-Door Refrigerator could be even higher.

Here is a table summarizing the financial savings of using the LG InstaView Door-in-Door Refrigerator instead of the Samsung 4-Door Flex French Door Refrigerator:Overall, the LG InstaView Door-in-Door Refrigerator is a more energy-efficient and cost-effective choice than the Samsung 4-Door Flex French Door Refrigerator. The LG InstaView Door-in-Door Refrigerator also has a higher resale value, which means that the total financial savings could be even higher.

Tips and resources for choosing and using energy-saving appliances in Nigeria

If you are interested in choosing and using energy-efficient appliances in Nigeria, here are some tips and resources that can help you:

• Look for the energy efficiency label on the appliance. The label shows the energy rating of the appliance from A+++ (most efficient) to D (least efficient). The label also shows the annual energy consumption of the appliance in kWh. The lower the rating and the consumption, the more efficient and cost-effective the appliance is.
  
• Compare the total cost of ownership of different appliances. The total cost of ownership includes the initial purchase price and the operating cost over the lifetime of the appliance. You can use online calculators to compare different appliances and find out how much you can save by choosing an energy-efficient one.
  
• Choose the right size and capacity of the appliance for your needs. For example, if you buy a refrigerator that is too big for your business or household, you will waste energy and money on cooling empty space. If you buy a washing machine that is too small for your laundry load, you will have to run more cycles and use more water and electricity.
  
• Maintain and use the appliance properly to optimize its performance and lifespan. For example, you should clean the filters of your air conditioner regularly, defrost your refrigerator when needed, avoid overloading your washing machine or dryer, and turn off or unplug your appliances when not in use.
  
• Consider upgrading or replacing your old appliances with newer and more efficient ones. Older appliances tend to consume more electricity and have shorter lifetimes than newer ones. You can sell or donate your old appliances to someone who needs them or recycle them properly to avoid environmental pollution.
  

Conclusion

Energy-saving appliances are devices that use less electricity than conventional ones. They can help reduce electricity consumption, save money, and protect the environment. By choosing and using energy-efficient appliances, households and businesses in Nigeria can enjoy better services and comfort while contributing to national development and global sustainability.