South Africa Solar Photovoltaic (PV) market size was USD 1.18 billion in 2023 and the market is projected to touch USD 2.89 billion by 2032, at a CAGR of 10.46% during the forecast period. The photovoltaic technology is one of the cleanest ways meaning that it converts sunlight into electricity directly. Photovoltaic cells are assembled together to come up with solar panels that consist of solar cells which act as semiconductors. Sunlight is absorbed onto the surface of the silicon cells after which the rays ionize the atoms thereby freeing the electrons. The free electrons try to form an electric current but the photovoltaic electric fields develop within the silicon causing the electrons to flow in one direction. Other types of photovoltaic materials are also used such as cadmium telluride, monocrystalline silicon, and amorphous silicon. Today, photovoltaic energy is essential to energy mix of any country as it’s one of the clean energy sources.
South Africa has the best solar PV market due to presence of abundant solar resources. It’s also the seventh largest manufacturer of solar PV in the world as it has vast and untapped solar PV market. Solar PV has achieved competitiveness in South Africa through the country’s Renewable Energy Independent Power Producer Procurement REIPPP program. REIPPP program has been successful in that it has uncovered the country’s huge PV potential and opened the massive possibilities for energy market growth, attracting investments from other countries and leading to technological advances for the solar PV. Plenty of energy is tapped from the sun through the installed solar panels that provide the energy that is widely used in the country. The installed final PV capacity installed in the country comes from both the local and international companies of the respective countries. The easy availability of the raw materials has also contributed to advancing the solar PV in the country.
South Africa Solar Photovoltaic (PV) report scope and segmentation.
Report Attribute |
Details |
Base Year |
2023 |
Forecast Years |
2024 – 2032 |
Estimated Market Value (2023) |
USD 1.18 Billion |
Projected Market Value (2032) |
USD 2.89 Billion |
Segments Covered |
By Type, By End-User, By Deployment, & By Region. |
Forecast Units |
Value (USD Million or Billion) |
Quantitative Units |
Revenue in USD million/billion and CAGR from 2024 to 2032. |
Countries Covered |
South Africa |
South Africa Solar Photovoltaic (PV) dynamics
The market dynamics of the South Africa Solar Photovoltaic are influenced by several factors. First is the role played by government policies and initiatives, particularly the Renewable Energy Independent Power Producer Procurement program. The program has created incentives for investment in solar Photovoltaic projects, by providing competitive bidding mechanisms and long-term power purchase agreements which entrench a role for the private sector in driving the growth of the market. This perfect example of a donor-funded and government-driven market development initiative that has been a significant driver of the growth of the market. The reduction in the cost of solar Photovoltaic equipment due to technological innovations has also driven the market. The cost of different aspects of the solar PV equipment, especially for the PV modules, inverters and batteries, the balance of system components have driven the demand and supply of the equipment from end users such as residential, commercial, and industrial customers. Additionally, different from the other two, the force of regulation and grid integration have influenced the market dynamics. The demand for renewable energy initiatives has been driven by supportive policies and the development of projects. However, challenges regarding the integration of the variable solar PV energy to the national grid have been a challenge and threaten to remain so without the adoption of strategies that improve grid flexibility and the deployment of energy storage systems. Therefore, the dynamics of the market are influenced by a range of actors, including donors, government, research institutions, and consumers.
South Africa Solar Photovoltaic (PV) drivers
Government Policy Support
The South Africa Solar PV market was majorly driven by government policies. The most prominent government policy that cemented the Solar PV market was the Renewable Energy Independent Power Producer Procurement program. The REIPPP program takes an initiative to provide a conducive regulatory environment by implementing competitive bidding process and entering into a long term power purchase agreement with the PV developers. With the sufficient finance and other insinuations the program was able to attract many other stakeholder’s investments. The policy came with other initiatives such as Tax incentive, accelerated interest and the renewable energy target that was aimed at increasing the potentials and the markets that were being explored.
Technological Advancements and Cost Reductions
South African solar PV market growth has been massively influenced by technological innovations and cost reductions. Technically speaking, solar panel efficiency and capacity of power generation from a given panel’s surface area or volume have kept increasing. From the point of view of production and consumption, the manufacturing processes employed to create PV modules as well as scales of the production of the final products have improved and increased, respectively. In combination, these improvements have led to the decrease in the cost of PV modules and a continuous decrease in the cost of balance of system components. These improvements are critical because they increase the competitiveness of solar PV as opposed to the traditional types of fossil-fuel-based electricity generation. Furthermore, technologies applied to the integration of solar PV systems into grids and the storage of electricity produced with the help of solar PV panels are becoming more advanced and reliable, which also boosts the adoption of solar PV technologies by residential, commercial, and industrial customers.
Grid Integration Challenges
A significant impediment to the South Africa Solar PV market, is the difficulty in grid integration. Since solar panels only generate electricity when there is sunlight, and this is not always guaranteed such as at night or during overcast weather, electricity can’t be sealed, and this risk interfering with grid stability and reliability. The current grid system of South Africa may not always accommodate a large-scale usage of Solar PV hence leading to technical concerns like voltage deviations, frequency management issues, as well as grid congestion. Advanced hardware and software systems should be developed to complement proper grid integration and accommodate for the deployment rates of the variable renewable energy sources.
Financial and Economic Factors
Another constraint to the South Africa Solar PV Market is presented by the financial and economic factors. Solar PV technology prices have declined; however, cost structures imply the high initial capital investment covering the equipment and installation expenses. Thus, utility-scale projects might be incredibly capital intensive, causing the lack of availability of the cheap financial resources that might create a hindrance because costs of capital regularly remain low, and financial risk perception can lower the level of investment or lengthen decision-making periods. In addition to the financial factors, numerous economic challenges, such as currency volatility, provide a significant signal to the market. Furthermore, changes in regulations may have costs higher than the projected profit, making the industry of solar panels unsustainable in the African region.
Energy Access and Electrification
Solar PV is a prominent option to enhance energy access and support rural electrification aspects in South Africa. Many rural and off-grid locations in the country fail to have constant access to centralized grid electricity. Solar PV technologies such as solar home systems and mini-grids cater to decentralized electricity generation and can enhance the living conditions in disadvantageous areas. The government and development agencies, as well as the private sector, should work together to lay down arrangements for investment into solar PV in even remote areas of the country.
Thin Film is less expensive to produce per watt and increasingly used in terms of flexibility, efficiency; however it is historically inferior in efficiency to crystalline silicon. Moreover, improvements in the thin film continue and it is applied to more and more applications, as well as the markets that have land shortage. The South Africa Solar PV market is also divided in terms of installation: Ground-Mounted and Rooftop systems. Ground-Mounted systems are typically large-scale projects that are built either on open land or in the solar parks. It is cost-effective technology due to the establishment of economies of scale and ensures maximum solar exposure and ease of maintenance. On the contrary, Rooftop systems are in high demand on account of residential, commercial, and industrial rooftops. It decentralized the generating electricity while providing if some transmission losses using already existing space. Also, it is a very attractive project for a C&I entity that want to reduce energy bills and increase sustainability without taking the additional land.
South Africa Solar Photovoltaic (PV) market competitive landscape
The competitive landscape of the South Africa Solar PV market is characterised by the involvement of both local and international players. By and large, the majority of the key players are taking an active part in the sector’s development and promoting its growth notions. In effect, both types of players are established leaders in the area of renewable energy, and there also are those that are seeking to establish themselves in the sector and benefit from opportunities that it brings. The former group of players includes a great many local companies involved in the production of utility-scale solar PV, with such businesses as Eskom Renewable Energy, a subsidiary of the nationally-owned utility Eskom, among them. The company is dedicated to leveraging its infrastructure and policy support to building large-scale solar PV installations that would effectively contribute to the national grid’s clean power capacity. Multinational players such as Enel Green Power, Total Solar Distributed Generation, and Scatec Solar, in turn, bring their experience and substantial financial resources into the market. These companies typically participate in the Renewable Energy Independent Power Producer Procurement program and are, as a rule, awarded contracts through the competitive bidding process. Finally, significant market involvement is manifested by such local players as developers of solar PV products, engineering, procurement, and construction firms, and technology developers, which help make the market more competitive by developing innovative technologies, ensuring their deployment and providing customers with solutions suitable for residential, commercial, and industrial settings.
South Africa Solar Photovoltaic (PV) Recent Developments
Scope of South Africa Solar Photovoltaic (PV) report
South Africa Solar Photovoltaic (PV) report segmentation
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