Africa’s solar sector is set to expand significantly, with new installations surging by 42% in 2025, according to the International Energy Agency (IEA). This growth is driven by the need to meet rising electricity demands and improve energy access across the continent.
Projected Africa solar growth in installations
The IEA report reveals that Africa’s solar installations are expected to increase from 2.6 GW in 2024 to 3.7 GW in 2025. Of this total, 3 GW will come from utility-scale solar projects, while 0.7 GW will be generated from distributed solar capacity. This growth aligns with the urgent need to address Africa’s energy challenges, with nearly 600 million people on the continent still lacking access to electricity.
Impact of Africa solar growth on energy access
Solar energy is emerging as a key solution to Africa’s energy needs. The IEA report highlights that solar power will play a crucial role in providing electricity to the 600 million people in Africa who currently lack access. This growth is supported by a combination of international partnerships, private sector investments, and local initiatives aimed at expanding solar infrastructure. For instance, Angola has made significant strides, achieving the 10th spot globally for new solar installations in 2023, adding 1.1 GW in solar capacity (Angola solar installations).
Challenges impacting Africa solar growth
Despite the positive outlook, the solar sector in Africa faces several challenges. The IEA points out that high interest rates, political instability, and policy uncertainties could hinder the expansion of solar energy. These factors could slow the development of new projects and increase the cost of implementing solar solutions.
Price fluctuations affecting Africa solar growth
The IEA report notes that while the cost of solar energy has decreased over the years, recent fluctuations in equipment prices could affect the growth of solar installations. For instance, the price of solar modules, which make up about 50% of the total solar project cost, has seen variations that could impact the affordability and feasibility of new projects. Additionally, the prices of polysilicon, a key material in solar panel production, have shown significant fluctuations, influencing the overall cost of solar energy in the region.
Government policies driving Africa solar growth
Government policies will play a crucial role in shaping the future of the solar sector in Africa. The IEA emphasizes the importance of stable and supportive policies to attract investments and drive growth in the solar industry. Governments across Africa are called upon to implement clear and consistent energy policies that encourage the development of renewable energy projects and ensure the sustainability of the solar sector.
Global trends influencing Africa solar growth
The IEA’s analysis also highlights global trends in the solar market. It forecasts a slowdown in solar installations worldwide, with annual growth rates declining from 13% in 2024 to 8% in 2025. This is attributed to high interest rates and the saturation of mature solar markets. However, the global solar market is expected to recover with annual growth rates projected to reach 11% by 2028, driven by expanding markets in China, Europe, and the United States.
Africa’s solar sector is poised for significant growth in the coming years, with new installations projected to increase by 42% in 2025. Despite the challenges of high interest rates and political uncertainties, the continent’s focus on renewable energy is set to transform its energy landscape. With continued investments and supportive policies, solar energy will play a vital role in addressing Africa’s energy needs and improving access to electricity for millions of people.