EFFECTS OF RENEWABLE ENERGY TRANSITION ON ENERGY SAVINGS BY COMMERCIAL BUSINESSES IN KADUNA STATE

Abstract

It is becoming increasingly evident that energy transition towards the increased use of renewable
energy is becoming a stronghold in many households and commercial businesses in Kaduna state
and Nigeria in general. The study relates to the high initial cost of solar installation compared to
savings on energy costs given the current economic realities with the aim of understanding if solar
installation really results in savings from transition. A total of three (3) commercial businesses with
a total of thirty (30) occupants were studied, selected by random sampling. Qualitative method and
case study approach was used to focus on understanding the economic context using the
implementation stage of innovation theory. Thematic analysis was used to identify key themes and
patterns. The data collected revealed the drivers and barriers to energy transition by commercial
businesses. This study was in line with Alagoz (2023) who studied The Energy Transition towards
Renewables in the Oil & Gas Industry and Odilova (2023) who studied the positive impact of
renewable energy on financial returns while aligning with growth and sustainability. Purposive
sampling method was used to select the commercial businesses and random sampling method was
applied in the study area. Analyses carried out reveal that an average 80% of the commercial
businesses prefer to completely transition to or combine solar as a renewable source as an
alternative to public electricity and other sources like generators which are mostly used for high
energy equipment like air conditioners. Findings reveal that economic survival and well-being of
these commercial businesses increases with reduction of expenses on energy through deployment of
sustainable renewable energy particularly the use of solar due to abundant sunlight in Kaduna.
The use of solar reduces costs incurred on energy and results in energy savings when using smaller
equipment, thus resulting in savings from energy transition. It is recommended that scientific
analyses be carried out that will enable quantitative research on energy savings from transition
and will unveil investment opportunities.