Botswana Solar Report

Discover comprehensive insights into the statistics, market trends, and growth potential surrounding the solar panel manufacturing industry in Botswana

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  17. Technical-economic evaluation of solar photovoltaic development in Botswana Retrieved July 18,2024. https://www.mase.gov.it/sites/default/files/archivio/allegati/sviluppo_sostenibile/PV_potential_Botswana_final.pdf
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  33. Grindtech, Retrieved July 10,2024.  https://www.grindtech.com/
  34. SegenSolar, Retrieved July 10,2024. https://segensolar.co.za/about-us/

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Botswana receives an average of about 3,332 hours of sunshine per year, which translates to roughly 9 hours of sunlight per day.1

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kWh per kWp installed

In Botswana, the specific yield for solar photovoltaic (PV) systems, which is the amount of electricity generated per kilowatt peak (kWp) of installed capacity, ranges from 1,750 to 2,300 kWh per kWp annually depending on factors such as location, system orientation, and overall efficiency.2

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Average cost per kWh from utility company

As of December 2023, the average cost of electricity in Botswana is approximately $0.093 per kWh for households and $0.111 per kWh for businesses. These prices include all components of the electricity bill, such as the cost of power, distribution, and taxes.3

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Reliability of electrical power supply grid

The reliability of Botswana’s power supply grid has been improving, yet challenges persist. The Botswana Power Corporation (BPC) manages the grid, which is partly dependent on electricity imports. There are ongoing efforts to enhance grid stability and reduce power outages, particularly through infrastructure upgrades and diversifying energy sources. Despite improvements, rural areas still experience more frequent disruptions compared to urban centers.4

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Detailed Information

  • All figures have been converted into USD
  • Total solar panel production capacity (installed)

    As of 2023, Botswana had a total installed solar energy capacity of only 6 MW.5

    Total solar panel production capacity (projected)

    Botswana is projected to achieve a solar panel production capacity of 200 MW by 2030. This projection is part of Botswana’s Integrated Resource Plan (IRP) to diversify its energy sources and reduce reliance on imported electricity.6

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    In Botswana, the average cost of electricity generation varies by source:7

    • Coal: Predominantly used, with significant local reserves. The cost per kWh is relatively low, around $0.06-$0.07.
    • Diesel: Used for emergency power generation, with costs between $0.15-$0.25 per kWh.
    • Solar: Solar power has significant potential in Botswana. The costs have been decreasing and are now around $0.08-$0.12 per kWh.
    • Natural gas: The cost per kWh is relatively low, around $0.05-$0.07 per kWh
    • Imports: Varies, but typically around $0.07 to $0.10 per kWh.

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

    In Botswana, the percentage cost distribution for various electricity generation sources typically aligns as follows:8

    • Coal: Represents the lowest cost, contributing to around 50-70% of electricity generation costs, due to abundant local reserves.
    • Diesel: Higher costs, making up approximately 20-25% of the cost structure, primarily used for emergency generation.
    • Solar: Rapidly growing, solar costs make up around 10-15%, but with potential for reduction as more infrastructure is developed.
    • Natural Gas: contributes to around 5-10% of electricity generations costs.
    • Import: contributes to around 10-15%.

    Average daily availability of electricity from the national grid (measured in hours)

    The current average daily availability of electricity from the national grid  in Botswana is typically around 20 to 24 hours.9

    Number of residential solar panel installations

    By 2024,the exact number of residential solar panel installations in Botswana isn’t readily available from a single source.10

    Total number of solar farms (installed and projected)

    Botswana has two installed solar farms, and seven projected solar farms.11

    Off-grid market demand for solar panels (current and projected)

    Current Demand12

    Rural Electrification: A substantial portion of Botswana’s population lives in rural areas with limited access to the national grid.

    Projected Demand13

    Growth Projections: The off-grid solar market in Botswana is expected to grow significantly over the next decade,it is expected to rise at a CAGR of more than 20% (2024-2029).

    On-grid market demand for solar panels (current and projected)

    While specific figures on the current demand for on-grid solar panels in Botswana are not readily available, the demand is steadily increasing due to the factors mentioned above. The focus on large-scale solar projects and government support suggests that this demand will continue to grow as Botswana aims to meet its renewable energy targets.10

    Average monthly income of workers in solar industry (labor cost)

    14

    Skilled Technicians and Installers: USD 375 to USD 750.

    Engineers and Project Managers: USD 750 to USD 1,500.

    Unskilled Laborers: USD 190 to USD 300

    Population of the country

    The population of Botswana is approximately 2.52 million people.15

    Average overhead costs of solar panel production (with a brief breakdown)

    Energy Cost: The levelized cost of energy (LCOE) of the projects will range between $0.08 and $0.10/kWh. 16

    Operating and maintenance:  Overall maintenance, including inspections and minor repairs is   $13.2/kWp year17

    Labour Cost:14

    Skilled Technicians and Installers: USD 375 to USD 750.

    Engineers and Project Managers: USD 750 to USD 1,500.

    Unskilled Laborers: USD 190 to USD 300

    Rent: The cost for factory space in Botswana vary depending on the location, size, and specific features of the property which varies from $870 to $3,870 per month.18

    A summary of the energy infrastructure

    19

    Traditional Energy Sources20

    Coal: Botswana has abundant coal reserves, and coal-fired power plants are a major source of electricity. The Morupule B power station, with a capacity of 600 MW, is the largest, although it has faced technical challenges1. The older Morupule A plant adds another 132 MW.

    Diesel: There are two diesel power plants, Orapa (90 MW) and Matshelagabedi (70 MW), used primarily for emergency power.

    Renewable Energy Sources 20

    Solar: Botswana is investing heavily in solar energy. The Mmadinare 100MW Solar Cluster is the first utility-scale solar project. Additionally, there are several small-scale grid-tied solar plants with a combined capacity of 32 MW.

    Rooftop Solar Program: Launched in 2020, this program aims to increase the adoption of solar energy in residential and commercial buildings.

    Energy Imports20

    Regional Imports: Botswana imports electricity from neighboring countries including South Africa (Eskom), Namibia (Nampower), and Zambia (Zesco), to supplement domestic production.21

    Infrastructure Development 22

    Grid Expansion: The Botswana Power Corporation (BPC) is investing in national and regional grid infrastructure to improve electricity distribution and reliability.

    Rural Electrification: Ongoing efforts to expand electricity access in rural areas, including new connections and grid expansions.

    Future Plans 23

    Integrated Resource Plan (IRP): Botswana’s IRP outlines a roadmap for achieving a reliable, safe, and affordable electricity supply, with a target of 30% renewable energy by 2030.

    New Projects: Plans include additional solar and thermal power plants, aiming to add approximately 610 MW of capacity within the next six years.

    Some of the government regulations surrounding solar panel production

    242526

    Rooftop Solar Programme: The government has established guidelines for the Rooftop Solar Programme, which allows end users to generate their own electricity and sell any excess to the Botswana Power Corporation (BPC). This programme includes rules on grid interconnection, generation capacity limits, and compliance standards.

    Permitting and Licensing: Solar panel installations must go through a permitting and licensing process. This ensures that installations meet the required technical standards and safety regulation.

    Technical Standards: All solar PV systems must comply with the relevant connection specifications of BPC, the Botswana Bureau of Standards, and internationally recognized PV installation standards.

    Renewable energy: Botswana has considerable unexploited renewable energy potential, especially as solar, wind and bioenergy and aims to use these renewables to achieve economic energy security and independence. Botswana announced at the end of 2020 that renewable energy would account for at least 15% of the country’s energy mix by 2030, with 50% renewable energy contribution to the energy mix by March 2036.

    Import Duties: To encourage the uptake of PV systems, Botswana enforces import duties on solar lights, lanterns, and batteries.

    Government initiatives in solar panel production (includes investments and subsidies)

    27

    Mega Solar Project: In collaboration with Namibia, the African Development Bank, and other international partners, Botswana is working on a Mega Solar project aimed at generating 2 to 5 gigawatts of solar power. This project is expected to significantly boost the country’s renewable energy capacity.

    Rooftop Solar Programme: This initiative encourages households, commercial, and industrial sectors to install solar panels. The programme includes net metering, allowing users to sell excess electricity back to the grid.

    Off-Grid Solar Solutions: The government is rolling out off-grid solar solutions, such as solar home systems and solar water heaters, particularly targeting rural areas.

    Mini-Grid Projects: Botswana is developing mini-grid solar PV systems in various villages. These projects range from 0.4 to 4 MW and aim to improve electricity access in remote areas.

    Subsidies and Incentives: The government provides subsidies and incentives to encourage the adoption of solar energy. This includes reducing import duties on solar equipment and offering financial support for solar projects.

    Notable solar projects in the country (installed and projected)

    Mmadinare Solar Complex: This is the largest solar project in Botswana, with a total capacity of 120 MW. The first phase of 60 MW is under construction, and the project is expected to power approximately 20,000 households annually.28

    Jwaneng Solar Project: This 100 MW solar PV project is part of Botswana’s efforts to increase its renewable energy capacity. It is expected to significantly contribute to the country’s electricity supply.29

    Mini-Grid Projects: Botswana is developing several mini-grid solar PV systems in various villages. These projects range from 0.4 to 4 MW and aim to improve electricity access in remote areas.

    Small-Scale Grid-Tied Solar Plants: The government has awarded contracts for 10 small-scale grid-tied solar plants with a combined capacity of 32 MW. These projects are being developed by 100% citizen-owned companies30

    Future Projects: Botswana plans to construct four new solar and thermal power plants within the next six years, adding approximately 610 MW to the country’s energy mix.

    Some of the notable solar companies (plus brief details on what they do)

    31

    SolarBW:[25]

    • Overview: SolarBW is a leading solar power energy company in Botswana and South Africa. They offer full turn-key solar power solutions, including the design, installation, and distribution of high-quality solar systems.
    • Capacity: They have completed projects such as the installation of a 102 kWp grid-tied solar array at Chobe Game Lodge.

    The Solar Zone:

    • Overview: Based in Maun, The Solar Zone focuses on supplying and installing solar equipment, primarily in Ngamiland but also across the country.
    • Capacity: They aim to bring affordable energy to rural areas, with various small to medium-scale installations.

    Sutsol Hitech Solutions:32

    • Overview: Located in Gaborone, Sutsol Hitech Solutions provides renewable energy solutions and project management services.
    • Capacity: They offer civil, electrical, energy, environmental, and water consulting services, specializing in innovative and sustainable energy solutions.

    Grit-tech (Pty) Ltd.:33

    • Overview: Grit-tech is involved in the renewable energy sector, focusing on solar energy solutions.
    • Capacity: They provide a range of services, including the design, supply, and installation of solar power systems.

    SegenSolar (Pty) Ltd.:34

    • Overview: SegenSolar is a distributor of solar PV systems and components, it is a south african company that has a branch in botswana.
    • Capacity: They supply a wide range of solar products, including panels, inverters, and mounting systems, catering to both residential and commercial markets.

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