By 2022, Kenya had established over 170 MW of solar power capacity. Notably, almost two-thirds of this capacity was integrated into the national grid in 2021, highlighting a significant expansion in the country’s renewable energy infrastructure.⁶

The Kenya government aims to have the solar energy sector produce 600 MWp (megawatts peak) by 2030. This target is part of the country’s broader strategy to increase its renewable energy capacity and reduce reliance on fossil fuels.⁷

The finding specific and exact energy prices by source in Kenya is challenging due to limited data availability online. The average costs of electricity generation in Kenya may be following. Here’s a general overview:⁸⁴³

• Geothermal Energy: $0.07 per kWh
• Hydropower: $0.06 to $0.08 per kWh
• Solar Energy: $0.08 to $0.12 per kWh
• Wind Energy: $0.08 to $0.11 per kWh
• Natural Gas: $0.10 to $0.12 per kWh
• Coal: $0.09 to $0.18per kWh

The breakdown of Kenya’s installed renewable energy capacities as of 2022:⁴⁴⁹¹⁰

• Geothermal Energy: 35.8%
• Hydropower: 32.4%
• Wind Energy: 16.5%
• Solar PV: 11.6%
• Bioenergy: 3.7%

These renewable sources are crucial to Kenya’s power generation, with hydropower and other renewables contributing approximately 92% of all electricity produced in 2022.

The average daily availability of electricity from the national grid in Kenya is generally high, with most urban areas experiencing reliable supply for approximately 22 to 24 hours a day. However, in rural areas and some underserved regions, the availability is lower, often around 12 to 18 hours per day due to infrastructure limitations and maintenance issues​.¹¹

An estimated 300,000 rural households in Kenya have solar systems for home. Annual photovoltaic (PV) sales in Kenya range between 10,000 to 20,000 systems.¹⁴

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Kenya has made significant strides in utility-scale solar energy projects.Kenya has a notable number of utility-scale solar farms, with 10 major operational projects contributing significantly to its renewable energy capacity. These projects include the Garissa Solar Project (55 MW), Malindi Solar Plant (52 MW), Alten Keesses (1) (52 MW), Kopere Solar Project (50 MW), Eldosol Solar Plant (48 MW), Radiant (50 MW), Rumuruti Solar Project (40 MW), Nakuru (Migitiyo) (40 MW), WITU (40 MW), and Makindu Solar Plant (33 MW). These key projects highlight Kenya’s ongoing efforts and commitment to expanding its solar energy infrastructure​

Projected :Looking ahead, Kenya is projected to see substantial growth in its solar capacity. The country has plans to install additional utility-scale solar farms, further increasing its solar energy capacity as part of its commitment to renewable energy and sustainable development. As of 2024, the Solar Energy market in Kenya is projected to grow by 0.79% from 2024 to 2029, resulting in a market volume of 101.40 million kilowatt-hours (KWh) in 2029.

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The demand for off-grid solar panels in Kenya is growing, driven by the need to provide electricity to remote and under-served areas. About 25% of the Kenyan population lacks access to electricity, with a significant portion of this group residing in rural areas. In collaboration with the World Bank and other organizations, the Kenyan government is actively working to address this gap through projects like the Kenya Off-Grid Solar Access Project (KOSAP).

KOSAP aims to connect 1.3 million people to off-grid solar solutions, focusing on deploying solar mini grids and standalone solar systems. As of 2023, the project has received substantial funding, including $150 million from the World Bank, to establish 137 solar mini-grids across 12 counties. These mini grids will provide electricity to public facilities and approximately 277,000 households​.

The off-grid solar market in Kenya is expected to continue expanding. The demand is driven by several factors, including the high cost of extending the national grid to remote areas, the declining cost of solar technology, and supportive government policies. By 2028, the market is projected to grow significantly, supported by residential and commercial installations.

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Kenya’s on-grid solar market is rapidly growing as the country aims to achieve 100% renewable energy by 2030. As of 2022, Kenya had an installed solar generation capacity of over 170 MW, with new projects such as the 40 MW Kesses solar PV plant contributing significantly to this total. This expansion is driven by the country’s excellent solar irradiation conditions and strong governmental support for renewable energy projects.

Projected: The Kenyan government has set ambitious targets in its National Energy Policy, aiming for 600 MW solar power by 2030. Public-private partnerships and investments from both local and international stakeholders further support this growth.

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The average monthly salaries for solar energy professionals include:

• Labor in Solar Industry: approximately $200 per month.
• Solar Electrician: approximately $320 per month.
• Solar Sales Representative: $3,400 per month
• Solar Sales Manager: $920 per month
• Solar Design Engineer: $1520 per month.

The current population of Kenya is 56,108,437 as of June 2, 2024.²⁶

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The average overhead cost of solar panel production in Kenya involves several key components

Raw Material Costs: The prices of essential raw materials like silicon, aluminum, and copper fluctuate based on global supply and demand, geopolitical events, and economic conditions. These costs are a significant part of the overall production expense.

Labor Costs: Labor costs in Kenya are relatively lower compared to many developed countries. For solar panel production, labor costs include wages for operating machinery, assembling panels, and quality checks.

The average labor cost in the manufacturing sector in Kenya is estimated to be between $3 to $6 per hour​.

Utility Costs: Energy consumption is a crucial factor, given that the production process is energy-intensive.

Electricity Cost:The cost of electricity for industrial users in Kenya is approximately $0.18 per kWh​.³⁴

Water Charges:⁴⁰ Water charges in Kenya can vary depending on the region, water provider, and usage category (residential, commercial, industrial). Commercial water tariffs in Kenya are structured as follows:

• For consumption between 1-50 cubic meters, the tariff is approximately $0.58 per cubic meter.
• Consumption between 51-100 cubic meters incurs a tariff of about $0.69 per cubic meter.
• Usage ranging from 101-300 cubic meters is charged at around $0.68 per cubic meter.
• For consumption exceeding 300 cubic meters, the tariff is approximately $0.70 per cubic meter.

Facility Maintenance:⁴¹Costs related to maintaining manufacturing facilities, including rent, equipment maintenance, and repairs, range between $1,000 to $3,000 per month depending on the size and location of the facility.

The average rent for commercial office space in Nairobi, Kenya, varies significantly based on location and office size. For example, office spaces in Westlands, one of the prime business districts, range from approximately $214 per month for smaller offices to $3,210 per month for larger, more prestigious spaces. These prices reflect the diverse options available, from modest setups to luxurious office buildings.

Administrative Expenses:^22232425 These costs cover management salaries, office supplies, and other general expenses.

• Salary of Labor in Solar Industry: approximately $200 per month.
• Solar Design Engineer: $1520 per month.

Quality Control: Ensuring the solar panels meet performance and safety standards involves testing and inspections. These quality control processes are essential and add to the overhead costs.

Overall, while specific figures can vary, the overhead costs for solar panel production in Kenya are significantly impacted by raw materials, labor, utilities, facility maintenance, administrative expenses, and quality control measures. This comprehensive approach to cost management helps maintain the affordability and competitiveness of solar energy solutions in the Kenyan market..

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Kenya’s energy infrastructure is undergoing significant development, with a strong emphasis on expanding renewable energy sources. The country’s energy mix is diverse, with contributions from geothermal, hydro, wind, and solar power. Kenya is particularly notable for its geothermal resources, being one of the top producers in Africa, with major plants like the Olkaria Geothermal Plant.Kenya has made significant progress in increasing electricity access. In 2000, only 8% of the population had access to electricity, but by 2018, this figure had risen to 75%. The goal is to achieve universal electricity service for all households and businesses by 2022.Efforts are also underway to improve clean cooking access.

Wind energy is emerging as a key player, highlighted by the Lake Turkana Wind Power project, which is among the largest wind farms on the continent. Solar power is also expanding rapidly, with the government’s goal to achieve 600 MWp by 2030. Key solar projects include the Garissa Solar Park and the Malindi Solar PV Park, which together significantly contribute to the national grid.

The transmission and distribution of electricity in Kenya are managed by the Kenya Electricity Transmission Company (KETRACO) and Kenya Power. Efforts are ongoing to enhance grid stability and extend access, especially in rural areas. Despite progress, challenges like grid reliability and access to remote locations persist. The government is investing in infrastructure improvements, smart grids, and energy storage solutions to address these issues.

The regulations related to solar panel production in Kenya:²⁹⁴²

The Draft Energy Solar Photovoltaic Systems Regulations 2020:

• These regulations were established under the Energy Act, 2019, and provide guidelines for solar photovoltaic (PV) systems in Kenya.
• They apply to various stakeholders, including solar PV system manufacturers, importers, vendors, workers, contractors, system owners, and consumers.

Energy (Solar Photovoltaic Systems) Regulations, 2012:

• Made under section 110 of the Energy Act, 2006, these regulations also focus on solar PV systems.
• They apply to manufacturers, importers, vendors, technicians, contractors, system owners, and consumers.
• The regulations cover installation standards, safety measures, and quality control for solar PV systems.

Net-Metering Regulations 2022

• Currently under public scrutiny, these regulations require entities producing over 1 MW of electricity from solar energy to sign Power Purchase Agreements (PPAs) with Kenya Power, the country’s utility firm.

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Some notable government initiatives and investments related to solar panel production in Kenya:

Solar Mini-grids in Rural Areas:³⁰

• The Kenyan Government, in partnership with the Kenya Off-Grid Solar Access Project (KOSAP), is developing 137 solar mini gridsacross remote locations in the country.
• These mini grids are being established in 12 out of the country’s 14 counties.
• The project received $150 million in funding from the World Bankback in 2017.
• The solar mini grids aim to electrify 567 public facilities, including secondary schools, health centers, and administrative offices.
• Additionally, they will power water pumps for 380 boreholes.
• This initiative is expected to provide access to electricity for approximately 277,000 households, benefiting around 5 million people.

State Funding for Solar Power Expansion:³¹

• Kenyans living in areas with limited regular power supply are set to benefit from solar power.
• The Kenyan government has allocated Sh390 millionto fund solar power projects in 14 counties.
• Fourteen private firmshave been selected and funded by the state to undertake these projects.
• This effort is part of Kenya’s collaboration with the World Bank and SNV through the Kenya Off-grid Solar Access Project (KOSAP).

VAT Exemptions for Renewable Energy Products³²

• The 2021 Finance billreinstated VAT exemptions on renewable energy products in Kenya.
• This move is expected to catalyze investmentsin the renewable energy sector, including solar mini grids.
• By promoting the use of least-cost mini grid technology, Kenya aims to accelerate its SDG 7 energy access objectivesand ensure universal access to electricity by 2030

Solar projects in Kenya based on the provided information:³³

Garissa Solar Project:

• Project Name:Garissa Solar Project
• Installed Capacity:55 MW
• Location:Garissa County

Malindi Solar Plant:

• Project Name:Malindi Solar Plant
• Installed Capacity:52 MW
• Location:Kilifi County

Alten Keesses (1) Solar Project:

• Project Name:Alten Keesses (1) Solar Project
• Installed Capacity:52 MW
• Location:Uasin Gishu County

Kopere Solar Project:

• Project Name:Kopere Solar Project
• Installed Capacity:50 MW
• Location:Nandi County

Eldosol Solar Plant:

• Project Name:Eldosol Solar Plant
• Installed Capacity:48 MW
• Location:Uasin Gishu County

Rumuruti Solar Project:

• Project Name:Rumuruti Solar Project
• Installed Capacity:40 MW
• Location:Laikipia County

Nakuru (Migitiyo) Solar Project:

• Project Name:Nakuru (Migitiyo) Solar Project
• Installed Capacity:40 MW
• Location:Nakuru County

WITU Solar Project:

• Project Name:WITU Solar Project
• Installed Capacity:40 MW
• Location:Lamu County

Makindu Solar Plant:

• Project Name:Makindu Solar Plant
• Installed Capacity:33 MW
• Location:Makueni County

Notable future solar projects projected in Kenya:

HDF Green Hydrogen Solar PV Project:

• Installed Capacity:180 MW
• Location:Kenya
• Developer:Hydrogen de France
• Status:Currently in the announced stage, with expected commercial operation in 2027.

Bavinci Africa Solar PV Project:

• Installed Capacity:70 MW
• Location:Nairobi, Kenya
• Status:Currently in the permitting stage, with an expected online date by 2025.

Voltalia Kopere Solar PV Park:

• Installed Capacity:50 MW
• Location:Kisumu, Kenya
• Developer:Voltalia
• Status:Under construction, with commercial operation expected in 2024.

Kisumu Solar One PV Park:

• Installed Capacity:25 MW
• Location:Kisumu, Kenya
• Developer:Ergon Solair
• Status:Currently in the permitting stage, with commissioning expected by 2024.

Eldosol Project Solar PV Park:

• Installed Capacity:48 MW
• Location:Kenya
• Developer:Eldosol Energy
• Status:Under construction, with commissioning planned for 2024.

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Kenya has several notable solar companies that play a crucial role in advancing renewable energy adoption. Here are some of the prominent ones:

Plexus Energy:

• Location:House Westlands Rd, Nairobi, Nairobi County
• Services:Plexus Energy is a leading commercial solar power systems provider in Nairobi, Kenya. They offer full-service solar power installations for commercial establishments, factories, schools, residential properties, and more. Their expertise spans both off-grid and grid-tied solar solutions.

Solinc East Africa Ltd:[

• Location:Moi Road, Naivasha, Nakuru
• Background:Solinc started as East Africa’s only PV panel producer in 2011.

Go-Solar Systems Ltd:

• Services:Go-Solar Systems has been a top solar company in Kenya since 2003. With over a decade of experience, they provide solar solutions for both commercial and residential purposes. Their services cover installation, maintenance, and consultation.

Zaion Solar Kenya:

• Services:Zaion Solar Kenya specializes in innovative solar energy solutions for homes and businesses. They offer installation and maintenance services for solar systems, catering to both residential and commercial clients

Other Notable Companies:

• Beyond the mentioned companies, Kenya boasts several other solar energy system suppliers and installers. Some of the top players include OFGEN Kenya Limited, Kenya Solar Energy Ltd, PowerPoint System Solar Society, Trusun Solar Company Ltd, Suntech Power Ltd, Harmonic Systems Solar Company Ltd, Solar World Kenya Ltd, PowerGen Renewable Energy, and Power Africa Solar