Reimagining Ghana’s Electricity Pricing: How a ‘Solar Afternoon Bundle’ Could Transform ECG and Empower Consumers

Ghana’s journey toward affordable and reliable electricity faces a persistent challenge: aligning consumer costs with the actual dynamics of power generation. As tariff hikes become a recurring response to sectoral debt and infrastructure costs, a bold rethinking of pricing strategy is needed. Energy consultant Charles Ofori suggests looking beyond traditional models to a dynamic, time-based system. His proposal draws a direct parallel to the telecommunications sector’s successful “nighttime package deals,” advocating for a similar, solar-focused incentive for electricity consumers. This article explores the viability, benefits, and implementation of a Time-of-Use (ToU) tariff structure for the Electricity Company of Ghana (ECG), particularly one that rewards usage during peak solar production hours.

Introduction: The Persistent Puzzle of Power Pricing in Ghana

For the average Ghanaian household and business, electricity bills are a source of growing anxiety. Recent regulatory decisions, such as the 9.86% tariff increase implemented by the Public Utilities Regulatory Commission (PURC) in early 2026, underscore a systemic issue. These increases, often tied to International Monetary Fund (IMF) program conditions and the ongoing costs of thermal power generation, are framed as necessary for cost recovery. However, they risk being perceived as a blunt instrument that passes systemic inefficiencies and debt—exemplified by the Energy Sector Levy (colloquially, the “Dumsor-Levy”)—directly onto consumers without addressing the root causes of high costs.

The fundamental question is: can pricing alone solve this? The answer lies in smarter pricing. The current largely flat or block-rate tariff structure fails to reflect the true, varying cost of generating electricity at different times. It does not incentivize consumers to shift usage to periods when power is cheapest and most abundant. This disconnect is particularly glaring given Ghana’s aggressive push for renewable energy, especially solar photovoltaic (PV) systems. The solution, as Ofori articulates, may lie in a behavioral economics model already proven in another sector: telecommunications. This article will dissect the problem, analyze the proposed ToU model, and provide a roadmap for how such a system could work for Ghana.

Key Points: The Core Argument for Solar-Time Pricing

• Misaligned Incentives: Ghana’s current electricity tariff does not align with the daily and seasonal peaks of solar generation, leading to wasted renewable energy and higher system costs.
• Telecom Analogy: The success of off-peak mobile data bundles demonstrates that consumers readily adjust behavior for financial savings, a principle directly applicable to electricity use.
• Win-Win Potential: A well-designed Time-of-Use tariff can lower consumer bills, reduce grid stress, extend infrastructure lifespan, and boost the effective integration of solar power.
• Weekend Focus: The greatest opportunity exists on weekends when commercial demand drops but solar generation remains high, creating a pronounced supply surplus.
• Beyond Night Bundles: The optimal period for discounted power is not at night (when solar is unavailable) but during the sunny afternoon hours when generation is highest.

Background: Ghana’s Energy Landscape and the Solar Surplus

The Current Tariff Context

Ghana’s electricity sector operates within a complex financial framework. The PURC, as the regulator, periodically reviews and adjusts tariffs to ensure utilities can recover the costs of generation, transmission, and distribution. The 2026 increase is part of a multi-year cost-recovery plan influenced by Ghana’s engagement with the IMF. A significant portion of the generation mix still relies on thermal plants (using natural gas or light crude), which have higher operational costs than renewables. Furthermore, the Energy Sector Levy, a dedicated tax, aims to service the monumental debt accumulated by the sector. While structurally necessary, these financial mechanisms place a continuous upward pressure on end-user tariffs.

The Renewable Energy Shift and the “Curtailment” Problem

Ghana has made substantial investments in utility-scale solar farms and supports distributed generation through net metering policies. This is commendable. However, solar power is inherently intermittent—it follows the sun. The peak generation occurs between late morning and mid-afternoon. A critical challenge emerges: curtailment. This is the economic waste that occurs when solar power is generated but not consumed or stored. Without large-scale, affordable battery storage, excess solar energy must either be used immediately or “curtailed” (not fed into the grid). On weekdays, industrial and commercial demand can absorb some of this. But on weekends and holidays, when many large consumers are inactive, the grid can experience a significant surplus of solar power. The current flat tariff provides no price signal for households or smaller businesses to intentionally increase their consumption during these sunny, low-demand periods to absorb this free or very low-cost energy.

Analysis: Deconstructing the Telecom Analogy and ToU Mechanics

Why the Telecom Model Works

Telecom operators like MTN and Vodafone in Ghana introduced “nighttime bundles” or “sleeping data” offers. These provide significantly cheaper data rates during off-peak hours (typically 11 PM to 6 AM). The result was a dramatic shift in consumer behavior: people schedule large downloads, software updates, and streaming for these hours. The incentive is purely economic. The network, which has underutilized capacity at night, benefits from more even load distribution, while consumers get more value for money. This is a textbook application of price elasticity of demand.

The electricity grid has a similar, even more pronounced, “off-peak” period, but it is defined by solar generation, not circadian rhythms. The “solar afternoon” (e.g., 10 AM – 4 PM, especially on weekends) is the grid’s equivalent of the telecom’s “night.” It is when the marginal cost of generation is lowest, often near zero for existing solar plants. Yet, there is no corresponding “solar bundle” discount for consumers.

Designing an ECG “Solar Afternoon Bundle”

A ToU tariff for ECG prepaid and postpaid meters would require three key components:

1. Smart Metering Infrastructure: The foundation. Existing prepaid meters must be upgraded or replaced with smart meters capable of recording consumption in 30-minute or hourly intervals and communicating with a central system. PURC and ECG have discussed smart meter rollouts; this gives the initiative a concrete purpose.
2. Dynamic Pricing Tiers: The tariff would have at least three periods:
   • On-Peak (High Cost): Evening hours (e.g., 6 PM – 10 PM) when demand is highest and thermal plants are running at full capacity. Tariff would be highest.
   • Mid-Peak (Standard Cost): Morning and early afternoon transition periods (e.g., 6 AM – 10 AM, 4 PM – 6 PM). Tariff would be the standard current rate.
   • Off-Peak / Solar Surplus (Low Cost): The critical solar afternoon (e.g., 10 AM – 4 PM), with a deeply discounted rate, especially on Saturdays and Sundays. This is the “bundle.”
3. Consumer Communication & Tools: A user-friendly app or SMS service must alert consumers in real-time about the current tariff period and their consumption. Historical data should show savings from shifting usage.

Synergy with Existing Policies

This proposal does not replace but complements the Feed-in Tariff (FiT) regime. FiTs guarantee a fixed price to renewable energy generators (like solar farms) for the power they feed into the grid, encouraging investment. ToU pricing ensures that this incentivized generation is actually consumed efficiently within the grid, maximizing its value and reducing the need for curtailment. It creates a complete market signal: invest in solar *and* shift your usage to use it.

Practical Advice: How Different Stakeholders Can Engage

For Policymakers and Regulators (PURC, Ministry of Energy)

• Mandate a Pilot Program: Commission a limited, voluntary ToU pilot in a specific ECG district with high solar PV penetration (e.g., parts of Accra or Kumasi).
• Design the Tariff Carefully: The solar off-peak discount must be substantial enough to change behavior (e.g., 30-50% cheaper than the standard rate). The on-peak rate increase should be calibrated to be a strong signal but not punitive for low-income households with inflexible demand.
• Protect Vulnerable Consumers: Consider a “lifeline” block of kWh per month at a flat, affordable rate for basic necessities, unaffected by ToU pricing, to ensure energy access is not compromised.
• Fund Smart Meter Rollout: Tie the business case for national smart meter deployment directly to the implementation of dynamic ToU tariffs.

For the Electricity Company of Ghana (ECG)

• Invest in Technology: Develop the IT systems for interval metering, billing, and customer engagement platforms.
• Launch Consumer Education: A massive public awareness campaign is non-negotiable. Use radio, TV, and social media to explain the “why” and “how.” Use relatable examples: “Iron your clothes on Saturday afternoon,” “Wash and dry clothes between 11 AM and 3 PM,” “Charge all your phones, laptops, and power banks after lunch.”
• Offer Incentives for Early Adopters: Provide a small bonus or credit for customers who consistently shift a high percentage of their usage to solar hours during the pilot phase.

For Consumers and Businesses

• Audit Your Usage: Identify energy-intensive, flexible activities: water heating (electric kettles, showers), laundry (washing machines, dryers), cooking (electric pressure cookers, rice cookers), device charging, refrigeration (setting timers), and cooling (pre-cooling spaces).
• Reschedule and Automate: Use timers on appliances. Run dishwashers and washing machines on weekend afternoons. Charge electric vehicles (if/when prevalent) during solar hours.
• Monitor Your Savings: Actively track your consumption patterns and bills under the new tariff. The financial reward is the primary motivator.
• Provide Feedback: Participate in pilot programs and surveys to help refine the tariff design.

FAQ: Addressing Common Questions and Concerns

Q1: Is this just another way for ECG to make more money?

A: The intent is the opposite. The goal is to lower the average cost of electricity for the system and for consumers who adapt. By reducing peak demand, utilities avoid running expensive “peaking” power plants and can defer costly grid upgrades. Savings from these avoided costs can be passed on as lower off-peak rates. The on-peak rate may rise slightly, but this reflects the true high cost of generation at that time, making pricing more transparent and fair.

Q2: What about people who work during the day and can’t use electricity then?

A: This is a valid concern, which is why the proposal heavily emphasizes weekends. The weekend solar surplus is the most significant and underutilized opportunity. Furthermore, many flexible tasks (laundry, bulk cooking, charging) can be done on weekends. For weekdays, the focus is on activities that can be automated with timers (e.g., water heating, refrigeration pre-cooling). The “lifeline” protected block also ensures basic daytime usage for essential needs remains affordable.

Q3: Won’t this require every home to have expensive smart meters?

A: Yes, smart meter infrastructure is a prerequisite. However, this is a necessary national investment for a modern grid. The cost can be amortized over time through the operational savings and deferred infrastructure costs the ToU tariff generates. The business case for smart meters becomes much stronger when paired with a functional dynamic pricing program.

Q4: Can this really work in Ghana’s context with lower average incomes?

A: It can, if designed equitably. The model’s power is in giving consumers control. Low-income households with flexible schedules or those who can invest in simple timers can capture significant savings. The key is ensuring the off-peak discount is deep enough to motivate change and that a basic consumption lifeline is protected. The telecom data bundle analogy holds: people across all income levels adjust behavior for savings.

Q5: What is the risk of solar power being wasted (curtailed) even with this?

A: The risk is reduced but not eliminated. ToU pricing creates a strong economic pull for demand to follow supply. However, it may not cover 100% of the solar surplus. This is where complementary policies, like encouraging commercial/industrial battery storage or targeted demand response programs for large industries, can help mop up the last bits of curtailment.

Conclusion: A Behavioral Revolution for Ghana’s Grid

Charles Ofori’s proposal is more than a technical tariff adjustment; it is a call for a behavioral and systemic revolution. It moves the conversation from “how do we pay more for power?” to “how do we use the power we have more intelligently and cheaply?” By learning from the telecom sector’s playbook, Ghana has an opportunity to turn its solar abundance from a grid management challenge into a consumer benefit.

The path forward requires political will, regulatory innovation, utility commitment, and public engagement. A pilot program focused on weekend “solar bundles” is a low-risk, high-potential first step. If successful, it can transform the ECG prepaid meter from a simple payment device into a tool for grid optimization, renewable energy maximization, and household savings. In a landscape defined by annual tariff hikes, this approach offers something different: hope for a more resilient, affordable, and sustainable energy future, powered by the sun and shaped by smart choice.

Sources and Further Reading

• Ofori, C. (2026, February 9). Imagine ECG pay as you go had ‘nighttime package deal’ like MTN. Life Pulse Daily. [Original Article]
• Public Utilities Regulatory Commission (PURC). (2026). 2026 Electricity Tariff Review Report. (Official publication of the 9.86% increase).
• Ministry of Energy, Ghana. (2023). Ghana Renewable Energy Master Plan. (Details on solar targets and net metering).
• International Monetary Fund. (2025). Staff Report for the 2025 Article IV Consultation and Request for an Extended Arrangement under the Extended Fund Facility with Ghana. (Context for fiscal and sectoral reforms).
• Energy Commission, Ghana. (2022). National Energy Statistics. (Data on generation mix,