In 2023, South Africa’s solar energy capacity reached 6,164 megawatts.⁵

The installed capacity is projected to increase to 8,400 MW by 2030.⁶

The obtaining precise electricity tariffs by source for South Africa can be challenging due to the dynamic nature of energy markets and limited public data. The Following are the average cost of electricity generation from different sources:⁷⁸

• Coal: USD 0.073 per KWh
• Solar: USD 0.08 per KWh
• Wind: USD 0.07-0.08 per KWh

South Africa’s electricity production is primarily fueled by coal, natural gas, solar, etc. Following are the electricity generation percentages from different sources:³⁸

• • Coal: 85.7%.
  • Solar: 3%.
  • Wind: 3.4%.
  • Others: 8%

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The average daily availability of electricity from the national grid in South Africa is significantly impacted by frequent load shedding. Load shedding schedules typically result in power outages lasting from two to four hours per session, and the severity can vary depending on the stage of load shedding implemented by Eskom.

Eskom’s load shedding stages range from Stage 1 (removing less than 1000 MW) to Stage 8 (removing up to 8000 MW) from the grid. Each stage determines the frequency and duration of outages. For example, in Stage 4, power outages can occur for up to 24 hours over four days, affecting approximately 25% of grid users without power during those times. This has led to increased interest in solar PV panels South Africa as a reliable alternative to mitigate the effects of load shedding. While the national grid might have periods of full availability, these are interrupted by scheduled load shedding sessions, leading to varying levels of electricity availability each day​.

South Africa, has 3.54% of residential solar panel adoption rate but it is growing fast. South Africa, despite its sunny climate, has a relatively small solar market, with an estimated residential adoption rate of 3.54%, according to Dominique d’Hotman, head of ooba Solar.¹¹

South Africa has 63 solar power stations that are either operational, under construction or financially closed. 51 solar power stations, generating over 2,700MW of clean electricity as of October 2023, with capacities 5MW to 175MW for multi-phase installations. While 5 solar power stations are under construction in South Africa (launched by government).^10121314

Exact data on off-grid solar installations in South Africa is not readily available online. However, the off grid solar power systems market in South Africa is currently experiencing growth due to the need for reliable and sustainable energy solutions. Off-grid solar systems are becoming increasingly popular in remote and rural areas where grid access is limited or non-existent, as approximately eight million people in South Africa are without electricity.³⁹

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• Current: South: Africa’s installed Solar PV capacity has witnessed exponential growth, reaching approximately 6164 MW in 2023, and is expected to keep climbing.
• Projected: The installed capacity is projected to increase to 8,400 MW by 2030.

The average monthly salaries for solar energy professionals include:¹⁶³⁴

• Solar Design Engineer:$2000-$4500
• Solar Sales Representative:$1300-$1650
• Solar Sales Manager:$2000-$2700
• Solar Electrician:$1144 – $ 1350
• Labor Cost: $108.67-$543.33

The population of South Africa is 61,079,962.¹⁷

The average overhead costs for solar panel production in South Africa involve several components:

• Raw Material Costs: Raw materials, such as silicon, aluminum, and copper, are major expenses. These costs fluctuate based on global supply and demand, geopolitical events, and economic conditions.
• Labor Costs:³⁵ Labor costs in South Africa for the solar industry can be significant. The average labor cost for skilled technicians and factory workers is relatively lower than in developed countries but varies widely depending on the skill level and region.
• Minimum Wage: South Africa has a national minimum wage that varies depending on the sector
• Public Sector: Aroud $370 USD  per month
• Private Sector (non-agricultural): $1.65 USD per hour
• Average Salary: The average sits around roughly $500 USD per month but can vary significantly by industry, experience, and location
• Utilities and Energy Costs:³³⁷ South Africa’s energy costs for industrial use are relatively high.
• Electricity Prices: Electricity prices for commercial and industrial sectors range between $0.08 to $0.18 per kWh.
• Water Charges: For the 2019/20 period, the tariff for water consumption up to 200 kilolitres per connection per month was set at $2.83 USD per kilolitre. For consumption exceeding 200 kilolitres, the tariff was $2.99 USD per kilolitre. In the 2020/21 period, these tariffs increased to $3.02 USD per kilolitre for consumption up to 200 kilolitres, and $3.19 USD per kilolitre for consumption exceeding 200 kilolitres. These rates reflect the adjustments made in water pricing over the year, aiming to cover the costs of water supply and infrastructure maintenance.
• Facility Maintenance:³⁶ Costs related to maintaining manufacturing facilities, including rent, equipment maintenance, and repairs, typically range from $2,000 to $8,000 per month.Here’s a rough estimate (based on limited publicly available data):
  • Smaller Factories (500-1000 sqm): $1,600 – $3,200 USD  per month
  • Medium Factories (1000-2000 sqm): $3,200 – $5,400 USD  per month
  • Larger Factories (2000sqm): $5,400  per month

Administrative Expenses:¹⁶³⁴

These include salaries for administrative staff, office supplies, and other general expenses, adding a significant portion to the overhead. The average monthly salaries for solar energy professionals include:

• Solar Electrician: $1144 – $ 1350
• Solar Sales Manager:$2000-$2700
• Solar Design Engineer:$1700-$2300

Quality Control: Ensuring the solar panels meet performance and safety standards involves expenses for testing and inspections.

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South Africa, a middle-income emerging market, has a well-developed energy sector dominated by coal, accounting for 74% of the country’s primary energy supply in 2018. Imported crude oil contributes 14% to primary energy, while other sources include biomass, natural gas, solar,wind, hydro and nuclear power. However, the country faces severe electricity supply constraints, managed through rotational power outages and load curtailment.

On a per capita basis, SA’s energy use and emissions are lowest than other continents. South Africa will require the addition of a power infrastructure, particularly renewable energy generation, such as solar power, to meet the growth in electricity consumption during the next twenty years.

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Re-regulations regarding climate change

Therevised mitigation targets for South Africa represent a notable advancement over the initial Nationally Determined Contribution (NDC). The former range of 398 to 614 MtCO2e was replaced with new targets that establish fixed limitations for greenhouse gas emissions, aiming for 398-510 MtCO2e by 2025 and 350-420 MtCO2e by 2030. Furthermore, the updated NDC for the first time include comprehensive adaptation measures. By 2050, South Africa plans to have net-zero emissions, according to its Low-Emission Development Strategy. To assist the implementation of the NDC, the nation seeks to achieve higher levels of climate finance, with a minimum of USD 8 billion being targeted yearly by 2030.

Integration of Different Power Sources

Integrating By 2050, the South African government hopes to transition away from carbon-based fuels and achieve 50% of its energy coming from renewable energy sources. The primary source of 14 REs is readily accessible natural resources found in the earth’s biosphere. These unbounded natural resources are also good to the environment. Therefore, RE is the world’s best sustainable energy source. 15 Investment in renewable energy (RE) has the potential to greatly mitigate the negative socioeconomic effects of fossil fuel production and consumption, as well as manage energy’s environmental effects.

Manufacturing Standards

The government has established standards and specifications for solar panels to ensure quality and reliability. These standards are set by organizations such as the South African Bureau of Standards (SABS).

Table 1: Quality Standard Infrastructure for Solar Energy

SAPVIA

South African Photovoltaic Industry Association: All the solar panel dealers, distributors, manufacturers and installers in South Africa must register themselves with SAPVIA. It will be the reason for the growth of the solar industry.

National Regulator for Compulsory Specifications

In South Africa, solar panels must comply with the National Regulator for Compulsory Specifications (NRCS). To guarantee product quality and safety, the NRCS creates and implements mandatory standards for an array of goods, including solar panels. For panels to be sold and installed, they must adhere to certain performance, safety, and material standards. The NRCS conducts routine inspections and audits to keep inferior panels off the market and protect consumers from injury or financial loss. Ensuring the safety and functionality of solar panels in South Africa requires adherence to NRCS guidelines.

The South African government has implemented multiple policies and initiatives to boost the domestic manufacturing of solar panels and the solar industry.²⁴

R9 Billion Tax Relief Program:

In order to facilitate the shift to clean energy, boost the supply of electricity, and reduce the high cost of fuel, the government of South Africa has launched a R9 billion tax relief initiative. According to the 2023 Budget Review report, Two hundred eighteen million USD went toward solar panel installation for homes, while two seventy two million USD went toward expanding renewable energy incentives for businesses.

Expansion of Renewable Energy Tax Incentive

In an effort to stimulate private investment, the South African government is extending the tax incentive for companies that support renewable energy. Through the incentive, companies will be able to write off the costs of qualified investments over a one- or three-year period, which will improve cash flow in the first stages of a project. Businesses may claim a 125% deduction for all renewable energy projects in the first year of the two-year extended incentive.

Rooftop Solar Tax Incentive

The proposal from the South African government would allow individuals to invest in solar energy by offering a 25% tax rebate on the cost of newly installed and unused solar PV panels. In order to promote renewable energy and alleviate the energy-related challenges that small and medium-sized businesses experience, the government is also recommending modifications to the Bounce Back Loan Guarantee Scheme.

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Following are the notable solar projects in South Africa:

Jasper Solar PV park:

• Location: Northern Cape, South Africa.
• Capacity: 96 megawatts (MW)
• Features: The plant, launched in October 2014, became Africa’s largest solar power installation and is crucial to achieving the country’s ambitious renewable energy targets.

Sishen Solar Facility

• Location: Located in Northern Cape, South Africa
• Capacity: 94.30MW
• Features: AccionaEnergia and Aveng developed the Sishen Solar Facility, a 250 hectare ground-mounted solar project owned by KKR and AccionaEnergia, generating 216GWh of electricity and offsetting 208,000t of CO2 annually.

Solar Capital Orange PV Park

• Location: Located in Northern Cape, South Africa
• Capacity: 86.25MW
• Features: Solar Capital Orange PV Park, spanning 193 hectares, is a ground-mounted solar project generating 200,000MWh of electricity, enough to power 50,000 households, with a projected cost of $130m.

Here are some notable solar projects that are projected

The Solar Hybrid Project

French oil and gas company TotalEnergies and its partners are constructing a 216MW solar power plant in South Africa, aiming to manage solar production intermittency. The project will provide the national grid with dispatch able renewable energy for 20 years, with a power purchase agreement in place.

Kenhardt Hybrid Solar

Scatec ASA unveiled its 540 MW Kenhardt hybrid solar and battery facility in the Northern Cape, combining 540MW PV and 225MW batteries. The facility spans 879 hectares and is one of the world’s largest hybrid solar and battery storage facilities.

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Following are the lists of top solar companies in South Africa:

SolarAfrica

The SolarAfrica, among best solar companies of Africa has been operated since 2010. It has installed almost 20 megawatts of solar capacity in South Africa. It is located in Irene, South Africa.

Rubicon SA:

It is one of the biggest solar companies in South Africa, having its branches all over the country. This company designs the best solar panels. It specializes in maintenance and installation of solar panels. It is located in Cape Town, South Africa.

ZRW Solar:

A South African company called ZRW Mechanika provides both custom and off-the-shelf energy solutions, including solar photovoltaics (PV), generator power and wind power. Additionally, ZRW provides cutting-edge, energy-efficient LED lighting solutions for both commercial and residential use.

Solsquare:

Solsquare Energy (Pty) Ltd was established in Windhoek in 2008 by Jens Kuehhirt, Hagen Späth, and Leonhard Eins. Solsquare was started as small and concentrated on solar water heating before gradually transitioning to become a provider of full solar solutions. Now it has started providing well-engineered energy solutions. These consist of heat pumps, turnkey energy solutions, solar water heating, and solar on-grid and off-grid solutions.

Grid Freedom:

The preferred solar installers in South Africa are Grid Freedom. Grid Freedom offers various financing alternatives to make solar energy installation for homes and businesses simple. This company is located in Gillitts, South Africa.

Sustainable Power Solutions:

Since its founding in 2008, SPS has successfully completed the commissioning of more than 250 solar and storage projects throughout Sub-Saharan Africa, including the Seychelles and St. Helena Island.

Solar Power Africa:

The only goal of Solar Power Africa is to establish a platform for the exchange of concepts, information, and experience in order to advance the development of solar energy in Africa.

BrightBlack Energy:

When BrightBlack Energy first entered the market in 2003, it optimized the energy efficiency of commercial properties. It started working with solar power in 2013 and currently have about 10MW of installed rooftop PV, including 2.5MW of financed solutions. In addition, BrightBlack co-owns 28.75 MW of property that is presently being developed as a component of the Renewable Energy Independent Power Producer Procurement (REIPPP) Program. BrightBlack has offices in Cape Town and Johannesburg and is a Level II B-BBEE contributor.