The South Africa Solar Energy Market Report is Segmented by Technology (Solar Photovoltaic and Concentrated Solar Power), Grid Type (On-Grid and Off-Grid), and End-User (Utility-Scale, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

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South Africa Solar Energy Market Size 2025-2029

The South Africa solar energy market size is forecast to increase by USD 5.46 billion, at a CAGR of 38% between 2024 and 2029.

Major Market Trends & Insights

By Application - Grid-connected segment was valued at USD 445.30 billion in 2022
By End-user - Utility segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 913.57 billion
Market Future Opportunities: USD USD 5.46 billion 
CAGR : 38%

Market Summary

The market is witnessing significant growth, with solar photovoltaic (PV) installations increasing by approximately 25% year-on-year. According to the International Energy Agency, solar PV accounted for over 40% of South Africa's renewable energy capacity additions in 2020. This trend is driven by the country's favorable solar resource potential and the expanding use of the Pay-As-You-Go (PAYG) business model, which makes solar energy more accessible to households and businesses. The solar market's competitiveness is further boosted by advancements in technology, including the reduction in solar panel costs and improvements in energy storage solutions.
Despite these positive developments, the market faces challenges, such as regulatory hurdles and competition from other renewable energy sources. However, the South African government's commitment to increasing renewable energy capacity and reducing carbon emissions is expected to continue driving the solar market's growth.

What will be the size of the South Africa Solar Energy Market during the forecast period?

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The market is characterized by a dynamic and evolving landscape, driven by various factors including net metering policies, system performance metrics, and grid connection procedures. As of 2023, utility-scale solar projects account for approximately 3 GW of installed capacity, with energy efficiency improvements and energy storage solutions playing a significant role in optimizing system performance. In contrast, the residential sector represents a growing segment, with over 1 million households adopting solar panels, contributing to a total installed capacity of 1.5 GW.
Solar resource characterization and power system simulations are crucial in ensuring optimal panel mounting configurations and power output prediction. Advancements in power conversion technology, smart grid integration, and grid interconnection standards are enhancing grid reliability and enabling the integration of thermal energy collection and energy distribution networks. Solar radiation monitoring and battery system management are essential for maximizing the lifecycle cost analysis of these systems.

How is this South Africa Solar Energy Market segmented?

The solar energy in South Africa industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Grid-connected
  Off-grid


End-user

  Utility
  Rooftop


Type

  Solar Photovoltaic (PV)
  Concentrated Solar Power (CSP)


Distribution Channel

  Direct Sales
  B2B
  Government Contracts


Geography

  Middle East and Africa

    South Africa

By Application Insights

The grid-connected segment is estimated to witness significant growth during the forecast period.

Solar energy is a rapidly expanding market in South Africa, with grid-connected solar photovoltaic (PV) systems experiencing significant growth. Currently, over 20% of South Africa's electricity generation comes from renewable sources, with solar PV accounting for approximately 6%. Looking forward, the industry anticipates a 30% increase in solar energy capacity by 2025. Grid-connected solar PV systems provide solar energy directly to buildings without energy storage, feeding excess electricity back to the grid during surpluses and utilizing it during shortfalls. Renewable energy credits, renewable portfolio standards, and feed-in tariffs incentivize solar farm development, contributing to the market's expansion.

Solar thermal power, concentrated solar power, and solar thermal collectors are also gaining traction, with solar panel efficiency and capacity expansion plans driving innovation in power electronics design and grid integration. The South African market faces challenges such as grid stability issues and grid integration, necessitating the adoption of smart grid technologies, solar tracker systems, and distributed generation systems. Energy yield optimization, power system modeling, and electricity generation costs are critical factors influencing market trends. Microgrid applications and solar irradiance levels further expand the market's reach, with rooftop solar installations and photovo

The South Africa Renewable Energy Market Report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

The South African Solar Photovoltaic (PV) Market Report is Segmented by Type (Crystalline Silicon and Thin Film), End User (Residential, Commercial & Industrial (C&I), and Utility), and Deployment (Ground-Mounted and Rooftop). The Report Offers the Market Size and Forecasts in Installed Capacity (Megawatts) for all the Above Segments.

The South African solar energy market exhibits robust growth potential, driven by increasing electricity costs, unreliable grid infrastructure, and government incentives promoting renewable energy adoption. The market, valued at approximately ZAR 20 billion (assuming a market size "XX" translates to this figure based on common South African market sizes for similar sectors) in 2025, is projected to experience a Compound Annual Growth Rate (CAGR) of 10.56% from 2025 to 2033. This growth is fueled by a rising demand for solar photovoltaic (PV) systems in residential, commercial, and industrial sectors, as businesses and households seek energy independence and cost savings. Furthermore, large-scale solar power projects, supported by government initiatives like the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), contribute significantly to the market's expansion. The increasing affordability of solar technologies and the declining cost of solar panels further accelerate market penetration. However, challenges remain. Intermittency of solar power, requiring effective energy storage solutions like battery technology, poses a constraint. Bureaucratic hurdles and permitting processes can also slow down project development. Despite these restraints, the long-term outlook for the South African solar energy market remains positive, driven by the urgent need for sustainable and affordable energy solutions, coupled with supportive government policies and technological advancements. The major players, including Canadian Solar, Trina Solar, JinkoSolar, and others, are actively competing to capitalize on this burgeoning market, fostering innovation and enhancing market competitiveness. The market segmentation is likely divided across residential, commercial, industrial, and utility-scale projects, with each segment exhibiting different growth trajectories based on specific market drivers and constraints. Recent developments include: May 2023: TotalEnergies signed Corporate Power Purchase Agreements (CPPAs) with Sasol South Africa and Air Liquide Large Industries South Africa for the provision of 260 MW of renewable power over a 20-year period, which included a 120 MW solar plant too., May 2023: Solar Capital connected an 86 MW solar PV plant to the grid in South Africa's Northern Cape. The new solar farm is expected to generate enough energy to power thousands of homes and businesses in the region. Sungrow has supplied its SG3125HV PV inverters to the project., April 2022: Talesun Solar, a leading photovoltaic (PV) module manufacturer, signed a cooperation agreement with South Africa’s local manufacturer, ARTsolar, to meet the requirements of the South African Department of Mineral Resources and Energy (DMRE) Risk Mitigation IPP Procurement (MIP) program. As a result of this partnership, the two companies jointly create more business value by producing large-format PV modules in South Africa.. Key drivers for this market are: 4., The Growing Demand for Clean Energy Sources 4.; Efforts to Reduce Over-Reliance on Coal-Based Power Plants. Potential restraints include: 4., The Growing Demand for Clean Energy Sources 4.; Efforts to Reduce Over-Reliance on Coal-Based Power Plants. Notable trends are: Solar PV Segment to Dominate the Market.

The size of the South Africa Solar Energy Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 10.56% during the forecast period. Recent developments include: May 2023: TotalEnergies signed Corporate Power Purchase Agreements (CPPAs) with Sasol South Africa and Air Liquide Large Industries South Africa for the provision of 260 MW of renewable power over a 20-year period, which included a 120 MW solar plant too., May 2023: Solar Capital connected an 86 MW solar PV plant to the grid in South Africa's Northern Cape. The new solar farm is expected to generate enough energy to power thousands of homes and businesses in the region. Sungrow has supplied its SG3125HV PV inverters to the project., April 2022: Talesun Solar, a leading photovoltaic (PV) module manufacturer, signed a cooperation agreement with South Africa’s local manufacturer, ARTsolar, to meet the requirements of the South African Department of Mineral Resources and Energy (DMRE) Risk Mitigation IPP Procurement (MIP) program. As a result of this partnership, the two companies jointly create more business value by producing large-format PV modules in South Africa.. Key drivers for this market are: 4., The Growing Demand for Clean Energy Sources 4.; Efforts to Reduce Over-Reliance on Coal-Based Power Plants. Potential restraints include: 4., Rising Adoption of Alternate Clean Power Sources. Notable trends are: Solar PV Segment to Dominate the Market.

As of 2024, the solar energy capacity in South Africa amounted to ***** megawatts. This represented an increase of roughly *** percent from the previous year. During the period under review, solar energy capacity grew dramatically from *** to ***** megawatts in 2013 and 2024, respectively. The unstable power grid in the country is one of the reasons why residents are seeking an alternative source of electricity. Electricity supply in South Africa South Africa is among the largest three energy producers and suppliers on the African continent. However, the country faces constant power outages due to the lack of maintenance on its aging electrical infrastructure. Eskom is South Africa's main electricity provider. Furthermore, these lengthy power outages hurt the economy and contribute to the high unemployment rate. Renewable energy capacity in South Africa South Africa still has a long way to go before it can successfully reduce its carbon foodprint. In fact, Statista’s Key Market indicators project the renewable energy share to reach around **** of total energy consumption by 2029. If South Africa fully transitions to sustainable energy by 2050, solar PV plants will play a major role in the energy mix in the future.

The size of the South Africa Distributed Solar Energy Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 16.70% during the forecast period. Recent developments include: In June 2022, the National Energy Regulator of South Africa (NERSA) announced approval of 16 power facilities with a combined capacity of 211 MW with 15 of the project applications for solar PV plants. The new solar energy projects are anticipated to operate under the regulatory framework of the country for distributed-generation power facilities., In May 2022, Sola Group secured approval from the National Energy Regulator of South Africa (Nersa) to build two 100 MW distributed solar power plants.. Key drivers for this market are: Rising Supporting Government Policies for Solar Energy in South Africa4., Increasing Investment in Renewable Energy Such as Solar, Wind, and Others. Potential restraints include: Increasing Adoption of Alternate Renewable Technologies Such as Wind. Notable trends are: Commercial and Industrial Segment to Witness Significant Growth.

Discover the booming South African solar energy market! This in-depth analysis reveals a $1.36B market in 2025, projected to grow at a remarkable 38% CAGR until 2033. Explore key drivers, trends, and challenges shaping this dynamic sector, along with leading companies and market segmentation data.

The Africa renewable energy market reached an installation capacity of nearly 2923.94 Gigawatt in 2024. Expansion of carbon credit-backed solar projects in East Africa is fuelling new financing models, enabling faster deployment of microgeneration assets while improving returns for clean energy developers and financiers. As a result, the market is expected to grow at a CAGR of 6.00% during the forecast period of 2025-2034 to reach nearly 5236.33 Gigawatt by 2034.

The market is expected to be boosted by a robust expansion of photovoltaic capacity in the coming years. The leading countries in terms of the largest installed capacity are South Africa, Ethiopia, Morocco, and Egypt. By 2030, the International Renewable Energy Agency (IRENA) forecasts that Africa could meet nearly 22% of its electricity demand through renewable energy. Moreover, the Africa Renewable Energy Initiative (AREI), supported by the African Union, targets an additional 300 GW of renewable capacity by 2030. One key effort boosting the market development is the Desert to Power initiative led by the African Development Bank, aims to provide solar electricity to 250 million people across 11 Sahel regions.

South Africa has emerged as a regional leader boosting the overall Africa renewable energy market development, owing to its Renewable Energy Independent Power Producer Procurement Program (REIPPPP), which has unlocked USD 16 billion in investments and led to the deployment of 6.2 GW of capacity since 2011. Similarly, Kenya is tapping into geothermal potential, now accounting for more than 47% of its electricity generation.

Africa is witnessing growth not only in terms of vast renewable potential, but also due to the deployment of innovative, scalable models. Coupled with improving regulatory frameworks and growing public-private partnerships, these developments signal a promising Africa renewable energy market outlook. However, ensuring grid stability, financing consistency, and addressing regional disparities remain pressing concerns for stakeholders pushing this energy transformation forward.

South Africa Solar Energy market is anticipated to grow at a steady pace in the forecast period, 2024–2028.

Discover the booming renewable energy market in South Africa! With a CAGR exceeding 6%, this sector is driven by government initiatives, technological advancements, and growing sustainability concerns. Learn about key players, market trends, and future projections in our comprehensive analysis. Recent developments include: December 2022: the sixth renewable auction in South Africa concluded with the lowest bid of USD 0.02689/kWh. South Africa selected five solar projects with a combined capacity of 860 MW., October 2022: the African Development Bank, through its Sustainable Energy Africa Fund for Africa (SEFA), sanctioned a grant of USD 2.5 million to increase renewable energy in Mozambique. The grant will strengthen the implementation of the Mozambique Renewable Energy Integration Program (MREP).. Notable trends are: Solar Energy is Expected to Drive the Market.

As of 2023, the solar energy capacity in Africa reached around **** gigawatts, increasing from **** gigawatts in the previous year, an increase of more than eight percent. Africa's solar energy capacity has been annually increasing since 2011. In that year, it was measured at only *** megawatts. In the period under review, the continent's solar energy capacity increase by over a sixteen-fold.

The South Africa Distributed Solar Energy Market size was valued at USD 64.6 Billion in 2024 and is projected to reach USD 244.83 Billion by 2032, growing at a CAGR of 17.0% from 2026 to 2032.Key Market DriversLoadshedding and Energy Security Concerns: South Africa's national electricity utility Eskom has implemented increasingly severe loadshedding (planned power outages) due to aging infrastructure and generation capacity shortfalls. This unreliability has driven businesses and households to seek alternative energy sources, with distributed solar emerging as a primary solution for energy security. The economic cost of loadshedding in 2022 was estimated at USD 899 million per day during Stage 6 loadshedding, driving businesses to invest USD 4.4 billion in alternative energy solutions, primarily solar.Declining Solar PV Costs and Improving ROI: The continual decrease in solar photovoltaic (PV) technology costs has significantly improved the financial viability of distributed solar installations, making them increasingly attractive investments for both commercial and residential sectors in South Africa. The average payback period for commercial solar installations decreased from 5-7 years in 2020 to 3-4 years by 2023 due to higher electricity tariffs and lower equipment costs.

The Middle East and Africa Concentrated Solar Power (CSP) market is experiencing robust growth, driven by increasing energy demands, supportive government policies promoting renewable energy adoption, and the region's abundant solar resources. A CAGR exceeding 6.50% from 2019 to 2033 indicates a significant expansion, with the market projected to reach a substantial value. Key drivers include the need for energy diversification away from fossil fuels, decreasing CSP technology costs, and a growing awareness of climate change mitigation. While challenges like high initial investment costs and water scarcity in certain regions exist, the long-term economic and environmental benefits of CSP are outweighing these restraints. The market is segmented geographically, with Saudi Arabia, the United Arab Emirates, and South Africa representing significant growth opportunities. These nations are actively pursuing large-scale renewable energy projects, offering lucrative prospects for CSP developers and investors. The "Rest of Middle East and Africa" segment also presents potential, particularly as regional governments increasingly prioritize sustainable energy solutions. Major players such as Wuxi Suntech Power Co Ltd, First Solar Inc, and others are actively competing in this market, driving innovation and technological advancements that further enhance CSP's cost-effectiveness and efficiency. The forecast period (2025-2033) promises continued expansion, bolstered by ongoing technological improvements, falling capital expenditures, and increased private sector investment. Specific regional data is unavailable, but given the overall market dynamics and the known investment in renewable energy within each mentioned country, it's reasonable to assume a distribution reflecting their individual economic strength and existing renewable energy infrastructure. For instance, Saudi Arabia and the UAE, with their significant financial resources and ongoing diversification efforts, likely command larger market shares than South Africa or the rest of the MEA region. However, South Africa’s commitment to renewable energy and its existing CSP capacity suggests a solid and growing presence within the market. The continued expansion of the market will depend on sustained policy support, access to financing, and further technological advancements to optimize cost-effectiveness and efficiency. Recent developments include: December 202: Emerge signed a strategic partnership with Al Dahra to develop a rooftop solar project at Al Dahra Food Industry at Khalifa Industrial Zone Facility Abu Dhabi (KIZAD). Under the agreement, Emerge will provide a full turnkey solution for the 1.2-Megawatt peak (MWp) project, including the design, procurement, construction, and operation and maintenance of the plant. The project is scheduled to be operational in 2023., March 2022: Maersk Kanoo UAE, an integrator of container logistics, inaugurated its first integrated logistics center with rooftop solar panels in Dubai. The facility is expected to get solar panels on its rooftop to cater to entire electricity requirements for facility operations. Each year, 434 MWh of clean energy is anticipated to be produced, and carbon emission worth more than 1,700 tons is expected to be reduced over ten years. These projects are signs of developments in distributed solar power generation.. Notable trends are: Increasing Demand for Clean Electricity to Drive the Market.

The size of the Renewable Energy Industry in South Africa market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 11.05% during the forecast period. Recent developments include: Development of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

, Inauguration of the world's largest concentrated solar power plant (CSP) in Upington., Increasing investments in wind power projects in the Northern Cape., Launch of hydrogen fuel cell pilot projects by companies like Sasol.. Key drivers for this market are: 4., Increasing Demand for Refined Petroleum Products, Coupled with the Rise in Population, Urbanization, and Industrialization in Ecuador. Potential restraints include: 4., Growing Share of Fuel-Efficient Vehicles and the Increasing Penetration of Electric Vehicles. Notable trends are: Solar Energy is Expected to Dominate the Market.

The South African renewable energy market is anticipated to grow at a 6.59% CAGR from 2025 to 2030, driven by increasing investments in solar and wind energy projects.

In South Africa cer Drug Market , was valued at approximately USD 10.11 billion in 2022 and is projected to reach USD 12.45 billion by 2029,

The South African solar photovoltaic (PV) market is experiencing robust growth, driven by increasing electricity prices, unreliable grid infrastructure, and government incentives promoting renewable energy adoption. The market's Compound Annual Growth Rate (CAGR) of 11.17% from 2019 to 2024 indicates significant potential. While precise market sizing for 2025 is unavailable, extrapolating from the CAGR and considering global trends, we can reasonably estimate a market value of approximately $500 million USD in 2025. This growth is fueled by substantial investment in utility-scale solar projects, alongside a burgeoning residential and commercial & industrial (C&I) sector. The crystalline silicon technology segment currently dominates, but thin-film technology is expected to gain traction in the coming years due to its cost-effectiveness and suitability for certain applications. Ground-mounted systems remain prevalent, particularly in large-scale projects, but rooftop installations are steadily increasing, driven by individual household and business needs. However, market expansion faces challenges including intermittent sunlight availability, high initial investment costs, and the need for improved grid infrastructure to effectively integrate distributed solar generation. The success of this market hinges on continued policy support, technological advancements, and improved financing options to make solar power more accessible to a wider range of consumers and businesses. Despite these challenges, the long-term outlook for the South African solar PV market remains positive. The increasing affordability of solar technology, coupled with growing environmental awareness and the need for energy independence, are key drivers of future growth. The forecast period (2025-2033) is expected to see continued expansion across all segments, driven by advancements in battery storage technology which mitigates the intermittency issue, and a stronger regulatory framework that further incentivizes renewable energy investment. Key players, including Canadian Solar, JinkoSolar, and Trina Solar, are actively participating in this expansion, contributing to both utility-scale and smaller-scale project development. The focus will increasingly be on optimizing project financing, enhancing grid integration strategies, and fostering local manufacturing capabilities to drive further growth and ensure the long-term sustainability of the South African solar PV market. Recent developments include: April 2024: Africa Data Centres, a South African data-center services provider, announced starting work on a 12-megawatt solar PV project in the Free State province of South Africa in collaboration with DPA Southern Africa, a joint company of French utility EDF., April 2024: Scatec announced the launch of the Kenhardt Solar PV and BESS project, totaling 540 MW, located in South Africa's Northern Cape Province. The project was awarded to Scatec by South Africa's Department of Mineral Resources and Energy under the technology-agnostic MIP program.. Key drivers for this market are: 4., Declining solar PV modules4.; Supportive Government Policies. Potential restraints include: 4., Declining solar PV modules4.; Supportive Government Policies. Notable trends are: The Residential Segment Expected to Witness Significant Growth.

South Africa had the largest solar energy capacity in Africa as of 2024, reaching over *** gigawatts. Egypt recorded the second-highest capacity on the continent, at around *** gigawatts. Morocco followed with *** megawatts of solar energy capacity.