Solar Energy in South Africa Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers South Africa Solar Energy Market Size & Share and It is Segmented by Technology (Solar Photovoltaic (PV) and Concentrated Solar Power (CSP)) and End-User (Residential, Commercial, Industrial (C&I), and Utility). The Report Offers the Installed Capacity and Forecasts for all the Above Segments.

South Africa Solar Energy Market Size

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South Africa Solar Energy Market Summary
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Study Period 2019-2029
Base Year For Estimation 2023
Market Volume (2024) 6.68 gigawatt
Market Volume (2029) 11.03 gigawatt
CAGR (2024 - 2029) 10.56 %
Market Concentration Medium

Major Players

South Africa Solar Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

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South Africa Solar Energy Market Analysis

The South Africa Solar Energy Market size in terms of installed base is expected to grow from 6.68 gigawatt in 2024 to 11.03 gigawatt by 2029, at a CAGR of 10.56% during the forecast period (2024-2029).

  • Over the medium term, the growing demand for clean energy sources is expected to stimulate the market growth of South Africa's solar energy market. Furthermore, efforts to reduce over-reliance on coal-based power plants will also likely drive the market's growth.
  • On the other hand, the rising natural gas consumption is expected to restrain the South African solar energy market during the forecast period.
  • Nevertheless, expanding the indigenous solar manufacturing industry will likely create lucrative growth opportunities for the South African solar energy market in the forecast period.

South Africa Solar Energy Market Trends

Solar PV Segment to Dominate the Market

  • South Africa has great potential for renewable energy resources, especially solar and wind, the most prominent technologies in the current renewables' procurement windows. South Africa has an average of more than 2,500 hours of sunshine per year, and the average solar radiation levels range between 4.5 and 6.5 kWh/m2 per day. The country’s Northern Cape is one of the most attractive solar resource areas in the world.
  • According to the Climate Commission of South Africa, transitioning South Africa from fossil fuel to renewable power system will require the deployment of roughly 150 GW of wind and solar capacity by 2050, a rate of 4 GW each year to net zero.
  • Furthermore, according to the Blended Finance Taskforce and Stellenbosch University's Centre for Sustainability Transitions report, South Africa will need USD 250 billion over the next three decades to transform its renewable energy system, which is around 3% of South Africa's GDP annually.
  • In August 2023, Novare announced a substantial investment in rooftop photovoltaic (PV) panels to reduce carbon emissions across its African industrial and commercial segment and strengthen its commitment to sustainability.
  • South African energy expert Anton Eberhard crunched data released by Eskom to find that South Africa's installed rooftop solar PV capacity increased from 983 MW in March 2022 to 4,412 MW in June 2023.
  • The Department of Mineral Resources and Energy (DMRE) has begun the prequalification process for developing new renewable energy capacity, which includes 1 GW of solar PV and 1.6 GW of wind. The procurement is also part of South Africa's plan to tender almost 12 GW of solar capacity following the new Integrated Resource Plan (IRP). The IRP proposes to develop 6 GW of large-scale solar and 6 GW of distributed solar PV capacity by 2030.
  • Therefore, owing to the above points, the solar PV segment is expected to dominate the solar energy market in South Africa during the forecast period.
South Africa Solar Energy Market: Solar PV Installed Capacity, in GW, South Africa, 2017-2022

Efforts To Reduce Over Reliance On Coal-based Power Plants are Expected to Drive the Market

  • South Africa is the seventh-largest coal producer in the world, and the country is heavily dependent on coal-based thermal power plants. As of 2022, coal-based thermal power plants accounted for 84% of the entire electricity generation.
  • In May 2023, South Africa's climate policy body announced that it is planning to delay retiring its aging coal-fired power plants to address electricity shortages. It said a power crisis had put the country on track to meet its climate goals anyway. The African National Congress has recommended that state power utility Eskom delay decommissioning its aging coal-fired power stations to help minimize rolling electricity outages.
  • However, South Africa has abundant solar resources, making it a prime location for developing solar energy projects. The country has set a target of generating 18 GW of renewable energy by 2030, with solar energy expected to make up a significant portion of this target. The government’s Renewable Energy Independent Power Producer Procurement (REIPPP) program has successfully attracted investment and supported the development of solar energy projects in the country.
  • The energy crisis has been primarily caused by overreliance on older coal-based thermal power plants owned and operated by the national power utility ESKOM. Additionally, for ESKOM’s coal-fired fleet, the Planned Capability Loss Factor (PCLF) for planned maintenance stood at 10.4%, and the Unplanned Capability Loss Factor (UCLF) due to unplanned outages stood at 24.6%. Other Capability Loss Factor (OCLF) stood at 2.9%.
  • Such significant plant loss factor coefficients are primarily due to ESKOM’s coal-fired fleet age. Excluding the newly built Medupi and Kusile facilities, the average age of ESKOM’s coal-powered fleet is 41 years, which is significantly higher.
  • According to the International Renewable Energy Agency (IRENA), in 2022, solar energy installed capacity was around 6,326 MW, with a growth rate of 0.15% from the previous year.
  • Therefore, owing to the above points, efforts to reduce over-reliance on coal-based power plants are expected to drive the country's solar energy market during the forecast period.
South Africa Solar Energy Market: Solar Energy Installed Capacity, in GW, South Africa, 2017-2022

South Africa Solar Energy Industry Overview

The South African solar energy market is semi-consolidated. Some of the major players in the market (in no particular order) include Canadian Solar Inc., ARTsolar (Pty) Ltd, Energy Partners Holdings (Pty) Ltd., IBC Solar AG, and Segen Solar (Pty) Ltd., among others.

South Africa Solar Energy Market Leaders

  1. Canadian Solar Inc.

  2. IBC Solar AG

  3. Segen Solar(Pty) Ltd

  4. ARTsolar (Pty) Ltd

  5. Energy Partners Holdings (Pty) Ltd

*Disclaimer: Major Players sorted in no particular order

South Africa Solar Energy Market Concentration
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South Africa Solar Energy Market News

  • 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.

South Africa Solar Energy Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Renewable Energy Mix, South Africa, 2023

    3. 4.3 Solar Energy Installed Capacity and Forecast, till 2029

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

        1. 4.6.1.1 The Growing Demand for Clean Energy Sources

        2. 4.6.1.2 Efforts to Reduce Over-Reliance on Coal-Based Power Plants

      2. 4.6.2 Restraints

      3. 4.6.3 The Rising Consumption of Natural Gas for Power Generation

    7. 4.7 Supply Chain Analysis

    8. 4.8 PESTLE Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Technology

      1. 5.1.1 Concentrated Solar Power (CSP)

      2. 5.1.2 Solar Photovoltaic (PV)

    2. 5.2 End User

      1. 5.2.1 Residential

      2. 5.2.2 Commercial and Industrial (C&I)

      3. 5.2.3 Utility

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Canadian Solar Inc.

      2. 6.3.2 Trina Solar Co. Ltd.

      3. 6.3.3 Jinko Solar Holding Co. Ltd.

      4. 6.3.4 ART Solar Ltd.

      5. 6.3.5 SegenSolar (Pty) Ltd.

      6. 6.3.6 IBC Solar AG

      7. 6.3.7 Engie SA

      8. 6.3.8 Enel SpA

      9. 6.3.9 Energy Partners Holdings (Pty) Ltd.

      10. 6.3.10 Seraphim Solar

    4. *List Not Exhaustive
    5. 6.4 Market Ranking/Share Analysis**

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 The Expansion of the Indigenous Solar Manufacturing Industry

**Subject to Availability
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South Africa Solar Energy Industry Segmentation

Solar power is energy from the sun that is converted into thermal or electrical energy. Solar energy is the cleanest and most abundant renewable energy source globally. Solar technologies can harness this energy for various uses, including generating electricity, providing light or a comfortable interior environment, and heating water for domestic, commercial, or industrial use.

The South African solar energy market is segmented by technology and end users. By technology, the market is segmented by concentrated solar power (CSP) and solar photovoltaic (PV). By the end user, the market is segmented by residential, commercial and industrial (C&I), and utility. For each segment, the market size and forecasts have been done based on installed capacity.

Technology
Concentrated Solar Power (CSP)
Solar Photovoltaic (PV)
End User
Residential
Commercial and Industrial (C&I)
Utility
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South Africa Solar Energy Market Research FAQs

The South Africa Solar Energy Market size is expected to reach 6.68 gigawatt in 2024 and grow at a CAGR of 10.56% to reach 11.03 gigawatt by 2029.

In 2024, the South Africa Solar Energy Market size is expected to reach 6.68 gigawatt.

Canadian Solar Inc., IBC Solar AG, Segen Solar(Pty) Ltd, ARTsolar (Pty) Ltd and Energy Partners Holdings (Pty) Ltd are the major companies operating in the South Africa Solar Energy Market.

In 2023, the South Africa Solar Energy Market size was estimated at 5.97 gigawatt. The report covers the South Africa Solar Energy Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Solar Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

South Africa Solar Energy Industry Report

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Solar Energy in South Africa Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)