Rising electricity costs in Kenya have led to a sharp increase in solar licences for PV technicians, contractors, manufacturers, and importers. Solar energy is becoming the preferred solution, offering consumers long-term savings and reducing dependence on the national grid.
Rising Electricity Prices Fuel Solar Demand
Kenya is experiencing a major shift in its energy sector, driven by the rising costs of traditional electricity and a growing focus on renewable energy. Solar power has become the leading alternative, as businesses and households search for affordable solutions.
This shift is evident in the increasing number of solar licences being issued across the country. These licences are for solar photovoltaic (PV) technicians, contractors, manufacturers, and importers, reflecting the rising demand for solar energy.
The surge in solar licences is largely driven by the skyrocketing prices of electricity in Kenya. Kenya Power — the country’s main electricity provider — has increased tariffs due to rising fuel costs and infrastructure investments. The fluctuating exchange rate has also contributed to the higher prices, as the cost of imported resources has gone up. These factors have pushed consumers to look for more reliable and cost-effective energy sources.
Solar energy is emerging as a key solution. It offers significant savings on electricity bills, making it an attractive alternative to grid electricity. Solar power is clean and renewable, and it allows consumers to reduce their dependence on the national grid. This has become particularly important as electricity prices remain unpredictable.
Growth in Solar Licences Reflects Expanding Market
The growth in solar licences is a clear indication of the expanding solar market in Kenya. According to the Energy and Petroleum Regulatory Authority (EPRA), 154 licences were issued to solar PV technicians during the 2023/24 financial year. An additional 355 licences were granted to solar contractors, manufacturers, and importers.
Expanding solar market in Kenya
When comparing the current figures to five years ago, the increase is even more striking. In the 2018/19 fiscal year, Kenya had 741 licensed solar PV firms and contractors. By 2023/24, this number had more than doubled to 1,603. Similarly, the number of licensed solar PV workers nearly doubled from 1,080 to 1,983 over the same period.
Several factors are driving the demand for solar power in Kenya. One of the main reasons is the economic benefit. The high cost of grid electricity has pushed many to seek cost-effective alternatives like solar power. Although the initial setup costs of solar installations can be high, the long-term savings make it a worthwhile investment.
The government has also played a significant role in promoting solar energy. Kenya’s policies and incentives have made it easier for people to adopt solar power. For instance, tax exemptions on solar equipment and streamlined licensing procedures have reduced the financial and administrative barriers to installing solar systems. Government initiatives aimed at achieving universal energy access have further encouraged the shift to solar power.
Technological Advancements Boost Solar Energy Efficiency
Technological advancements have also contributed to the growth of solar energy in Kenya. Solar PV systems have become more efficient and affordable in recent years. Improved solar panels and energy storage solutions such as lithium-ion batteries, allow for a more consistent energy supply. This makes solar a viable solution for both residential and commercial use.
Environmental considerations are another factor driving the demand for solar licences. There is a growing awareness of the environmental benefits of solar power. Many consumers and businesses are choosing solar energy as a way to reduce their carbon footprint. This aligns with Kenya’s commitment to promoting green energy and meeting international climate targets.
The rise in solar licences reflects the growing demand for solar energy in Kenya. As more people and businesses turn to solar power, the country’s energy landscape is undergoing a transformation. With solar energy offering long-term savings and environmental benefits, it is set to play a key role in Kenya’s energy future.