As of 2022, Benin has a solar panel production capacity of 213.1 MW.⁵

Benin is planning to generate 300 Megawatt in terms of solar energy by 2030.²¹

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Fossil Fuels

Not available but average cost per kWh can be observed from reference ³

Renewables

The cost of electricity from solar power in Benin varies based on the type of system and other factors:

• Pay-As-You-Go Solar Products: As of September 2016, customers could access pay-as-you-go solar products approximately USD 1.50. This cost is comparable to the average weekly expenditure on kerosene and phone charging.
• Solar Home Systems: The European Investment Bank has installed 107,000 solar home systems in Benin, offering them at a daily cost of 20 cents per day for users.
• Utility-Scale Photovoltaic Power Plants: The levelized cost of energy from these large-scale solar plants ranges between USD 0.11 and USD 0.125 per kWh. However, incentives and subsidies may reduce this cost further.

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In Benin, the average daily availability of electricity from the grid is approximately 16 hours. This figure reflects the country’s efforts to improve grid reliability but also acknowledges that outages and inconsistencies are common due to infrastructural challenges and dependence on imports.⁵

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Current Installations

• French energy giant Engie deployed 107,000 solar home systems (SHS) in Benin with the EIB loan.
• The lender said the funds would provide access to electricity for 643,000 people.

Projected Installations

Specific number is not available but;

• The Russian government has approved a new tender scheme for renewable housing covering the period from 2025 to 2034. The total budget allocated for this initiative is approximately $1.88 billion.

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Installed Solar Farms

• Total: 7 (2 from ENGIE + 5 additional projects)
• ENGIE Energy Access: 2 solar-powered mini-grids
• Additional plants (Onigbolo, Djougou, Natitingou, Bohicon, Parakou): 5 projects

Projected Solar Farms

Total: 20 (from ENGIE’s new projects)

The demand for off-grid solar solutions in Benin is growing, driven by the need to increase electricity access, particularly in rural and peri-urban areas where grid connectivity is limited.¹¹⁶

Current Demand and Deployment

ENGIE Energy Access Projects

• ENGIE Energy Access has launched the construction of two solar-powered mini-grids and a 68 km low-voltage distribution network in northern and central Benin.
• The mini-grids will have a total capacity of 1,200.1 kWp and will provide 6,000 connections.
• The mini-grid project is part of the Millennium Challenge Account – Benin II Program, which aims to enhance off-grid electricity access for rural and peri-urban populations.

Engie Energy Access’s  mini-grid

• The demand for off-grid solar solutions in Benin is high, particularly in rural and remote areas where access to the national grid is limited.
• Engie Energy Access’s recent launch of a mini-grid in Dohouè, powered by 135 kW of solar panels and 130 kWh of Lithium-ion batteries, is a clear indication of the current demand.

VAT exemption on imports of solar panels

• The government is actively promoting off-grid solar projects as part of its strategy to improve energy access, as evidenced by the recent VAT exemption on imports of solar panels and related equipment.
• This measure is aimed at making solar energy more affordable and accessible, thereby stimulating demand for off-grid solar systems.

Solar Electric Light Fund’s (SELF)

• Additionally, projects like the Solar Electric Light Fund’s (SELF) solar-powered water pumps and vaccine refrigerators in rural areas underscore the increasing adoption of off-grid solar technology to meet essential needs.
• With low electricity access—only 41.5% of the population has grid connectivity—there is significant potential for off-grid solar solutions to fill the gap, particularly in remote areas.

Future Projections

• The future demand for off-grid solar in Benin is expected to rise as more rural communities seek reliable and sustainable energy sources.
• Engie Energy Access plans to construct an additional 20 mini-grids, which will collectively provide 1.2 MW of installed capacity and support over 30,000 people in rural areas.
• With supportive government policies, such as the VAT exemption on solar equipment imports, and increasing investments in off-grid projects, the off-grid solar market is poised for significant growth.
• This will play a crucial role in improving energy access and fostering economic development in underserved regions.

Agreement between Beninese Agency for Rural Electrification and Energy Management (ABERME) ⁶

• ENGIE has signed a concession agreement with the Beninese Agency for Rural Electrification and Energy Management (ABERME) for constructing and operating 20 additional mini-grids.
• The company has already provided clean energy to over 1.25 million people through its solar home systems, with a recent $10 million loan from the European Investment Bank to support 107,000 new solar home system

Exact figure is not given but;¹¹

Current Demand

• Benin’s on-grid solar demand is currently modest but steadily increasing. With 28 MW of installed solar capacity as of last year, the country is beginning to integrate more solar energy into its national grid.
• Ongoing projects, such as the 25 MW solar plants by Toyota Tsusho, reflect the government’s focus on expanding solar capacity. This demand is driven by the need to reduce reliance on imported electricity, which currently accounts for about 80% of Benin’s energy supply.

Future Demand

• Looking ahead, the demand for on-grid solar in Benin is expected to grow significantly as the government aims to achieve significant increase of solar capacity by 2026.
• This ambitious target indicates a strong push towards diversifying the energy mix and increasing domestic electricity generation.
• Future projects will likely focus on large-scale solar plants that can feed directly into the grid, reducing energy dependency on neighboring countries and improving energy security.

The typical salary for a Solar Photovoltaic Installer in Benin ranges from approximately $1,926.63 to $6,486.75 USD per year, with an average of about $4,096.55 USD per year.¹²

The current population of Benin is 14,501,763.¹³

Estimate for Factory Rent ¹⁴

Average Warehouse Rental Cost

Notes:

• Capacity is given in square meters (m²) and cubic meters (m³) for storage space, and metric tons (mt) for bulk storage.
• Price is indicated per month, with ranges where applicable

Business Electricity Price ¹⁵

The average electricity price for businesses in Benin is approximately USD 0.154 per kWh as of December 2023

Key Components of Administrative Costs

Salaries and Wages: ¹²

The typical salary for a Solar Photovoltaic Installer in Benin ranges from approximately $1,926.63 to $6,486.75 USD per year, with an average of about $4,096.55 USD per year.

Rent for Office Space ¹⁶

The cost of renting shared office space in Benin City starts at approximately $1.70 USD per day in Parakou and $3.40 USD per day in Cotonou.

Electricity Generation ⁹

Benin’s electricity generation is sourced from a variety of means, including fossil fuels, natural resources, and renewable energy (RE). Here’s a summary of the distribution:

• Fossil Fuels: In 2021, natural gas was the predominant source of electricity, accounting for 79.1% of generation. Oil contributed 19.4% to the total electricity production.
• Benin relies on Nigeria and Ghana for almost half of its electricity supply,
• Benin also has older power plants and energy facilities, some dating back to the 1950s and 1960s. However, these facilities have suffered from a lack of investment, leading to their deterioration over time.

 Transmission & Distribution ⁵

Benin’s electricity infrastructure comprises 5,620 kilometers of domestic transmission and distribution lines, along with 618 kilometers of transnational lines.

Energy Access ¹⁷

Benin’s energy landscape is defined by low per capita energy consumption, extensive reliance on biomass, and the overexploitation of natural forest resources. Only 41.5% of the population has access to electricity.

Energy Exports ¹⁸

• Benin is a net exporter of petroleum, including both crude oil and refined products. In 2022, the country exported $37.3 million worth of refined petroleum, ranking as its sixth most significant export.
• Key markets for Benin’s refined petroleum include India, Kuwait, the Netherlands, Mali, and the United Arab Emirates.

In Benin, the regulatory framework for solar panel production and related activities is defined by several key laws and decrees. Here’s a summary of the current regulations and laws governing the solar panel industry and related sectors in Benin:¹⁹

Electricity Code of 2020

• Law Nr. 2020-05 (1 April 2020): This law replaces the previous Electricity Code (Law Nr. 2006-16) and marks a significant shift by ending the state utility’s monopoly on energy generation, transmission, distribution, and marketing. It introduces a more open market for private sector participation. Key provisions include:
  • Declaration Regime: For electrical installations for own use below a certain capacity.
  • Authorisation Regime: For public interest generation, off-grid areas, and self-generation above a specified capacity.
  • Public Service Delegation: For large-scale generation, transmission, and distribution activities not covered by other regimes.
• The law also differentiates between off-grid electrification regimes: a concession regime for systems larger than 500 kVA and an authorization regime for smaller systems.

Order Nr. 2020-006

• Specifies the fees for license, concession, and authorization applications, and for submitting system installation declarations. Fees vary by installed capacity.

Law Nr. 2016-24

• Governs public-private partnerships (PPP) in Benin. It outlines terms, conditions, and procedures for PPP contracts, including those for energy projects.

Decree Nr. 2018-415

• 12 September 2018: Focuses on off-grid electrification, requiring operating licences for off-grid providers. Systems larger than 500 kVA are subject to a concession framework, while smaller systems need only authorisation from the Agence Béninoise d’Électrification Rurale et de Maîtrise d’Énergie (ABERME).

Decree Nr. 2007-655

• 31 December 2007: Details the modalities for declaring and authorizing self-produced electricity. Systems over 500 kVA need authorization, while those between 50 and 500 kVA need only declaration. It limits grid feed-in to 50% of the total generation. Its relevance is uncertain under the new Electricity Code.

Mini-Grids and Solar Home Systems (SHS)

• The Electricity Code and Decree Nr. 2018-415 govern mini-grids and SHS. For mini-grids, systems larger than 500 kVA require a concession, and smaller systems need authorisation. The SHS market benefits from a high mobile money penetration rate, supporting the PAYGO business model.

Captive Power

• Rooftop solar PV projects are regulated under the new Electricity Code, allowing self-production and grid feed-in with limits. The regulatory framework may be updated to include feed-in tariffs.

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Action Programme 2016-2021

• Target: The program aimed to achieve a total of 95 MW of grid-connected solar PV capacity by 2021. This target reflects the government’s commitment to increasing solar energy capacity in the country.

Projet de Valorisation de l’Énergie Solaire (PROVES)

• Objective: This project aims to install 105 solar/diesel hybrid mini-grids across Benin. As of November 2019, 79 mini-grids had been constructed in rural villages. The project promotes the use of solar energy in off-grid areas.

Programme Régional de Développement des Énergies Renouvelables et d’Efficacité Énergétique (PRODERE)

• Collaboration with PROVES: This regional program supports the development of renewable energies and energy efficiency, including solar energy initiatives in Benin.

Benin Off-Grid Clean Energy Facility

• Support for Solar Projects: This facility supports off-grid solar projects and has been involved in projects like Sunkofa’s expansion of mini-grids in Benin.

National Renewable Energy Action Plan (PANER) 2015-2030

• Goal: Aims to achieve 100% access to improved cooking solutions by 2030, which includes support for clean energy technologies like solar panels in rural and underserved areas.

Solar Home Systems (SHS) and Pico-Solar Market

• Market Growth: The government supports the growth of the SHS and pico-solar market, which has seen significant increases in sales, with major players like Fenix International leading the market.

VAT exemption on the import of solar photovoltaic (PV) panels

• Benin has introduced a VAT exemption on the import of solar photovoltaic (PV) panels, along with materials, equipment, and installation accessories for PV and solar thermal systems. This fiscal incentive, included in the 2020 finance law, aims to boost access to electricity through off-grid projects by making solar energy more affordable. However, the exemption does not apply to inverters.
• These provisions cover solar panels and other essential installation equipment, such as lamps, electric wires, and especially batteries, which together make up approximately 30% of the cost of solar electrification projects

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Installed Projects

Current Solar Projects in Benin:

Illoulofin Photovoltaic Solar Power Plant (25 MWp):

• Location: Illoulofin, Pobè, Plateau department.
• Capacity: 25 MWp.
• Details: This is the first large-scale solar power plant in Benin, inaugurated on July 19, 2022. The plant, built by the French company RMT Eiffage, is equipped with 47,212 solar modules, 113 inverters, and six transformer stations. The plant’s electricity is transmitted via two 20 kV lines to the Société béninoise d’énergie électrique (SBEE) network.
• Expansion: A second phase is planned to double the plant’s capacity to 50 MWp over the next three years.

25 MWp Onigbolo solar project

• Location: Onigbolo, Benin.
• Capacity: 25 MWp.
• Details: Initiated in January 2018, the Onigbolo Solar PV Project was the first major solar power project in Benin. It marked the start of significant solar energy activities in the country, forming part of a broader initiative to develop renewable energy infrastructure. The project laid the groundwork for the expansion of solar energy in Benin. The plant cover 40 hectares of photovoltaic panels within a total area of 100 hectares, making it one of the largest installations in the country.

Projected Projects

Toyota Tsusho Solar Plant (25 MW):

• Location: Pobè region, Benin.
• Capacity: 25 MW.
• Details: Toyota Tsusho has finalized a contract with the Beninese Electricity Production Co. to establish a 25 MW solar plant. This project is being developed in collaboration with Germany’s EPC RMT and is expected to be one of the largest solar installations in Benin. The project is set for completion in 2024.

Bohicon Solar PV Park (15 MW):

• Location: Zou, Benin.
• Capacity: 15 MW.
• Details: This project is currently in the permitting stage, with construction expected to begin in 2024. The plant is planned to enter commercial operation by 2025.

Company Name: Dulosolar Benin
Location: 01 BP 490, Cotonou, Benin
Contact Numbers: (229) 90 90 53 55 / (229) 66 51 51 88
Fax: (229) 59 12 12 60
Website: www.dulosolar.com

Services Provided

Dulosolar Benin specializes in the design, development, and commercialization of turnkey photovoltaic solar power plants, both grid-connected and off-grid. They cater to individuals, industrial clients, local authorities, farmers, and landowners in France, the French overseas departments, and Africa.

Categories

• Energy Suppliers
• Electricity Suppliers
• Solar Energy
• Engineering

Company Name: MySol Bénin
Location: Zone de L’aéroport, Villa Censad, Cotonou, Benin
Contact Number: +229 69 70 99 99
Email: marketing-eea.benin@engie.com
Website: https://www.facebook.com/MySolbenin

Services Provided:
MySol Bénin, a subsidiary of the ENGIE group, is a solar energy company that offers a range of solar panels from 25W to 200W. Their products are designed to provide up to 10 hours of battery life, even during power outages, ensuring reliable and continuous energy. They also offer in-store pickup services.

Company Name: ARESS
Location: Cotonou, Benin
Service Areas: Comé, Bohicon, Allada, Ouidah, Kandi, Adjarra, Parakou, Natitingou, Savalou, and Cotonou, Benin
Contact Numbers: +229 65 80 12 05
Email: contact@aress-group.com
Website: aress.solar

Services Provided:

ARESS is an energy company specializing in sustainable solar energy solutions. They offer a range of services including the design, installation, and maintenance of solar power systems for both residential and commercial clients across various regions in Benin. Their solutions are aimed at enhancing energy efficiency and promoting renewable energy usage in the country.