South Africa Rooftop Solar Market Segmented By Technology (Thin Film, Crystalline Silicon), By Grid-type (Grid Connected, Off-grid), By End-use (Residential, Commercial, and Industrial), By Region, Competition, Forecast and Opportunities 2028

South Africa rooftop solar market is anticipated to grow at a steady pace in the forecast period, 2024–2028.

A photovoltaic (PV) system with its electricity-generating solar panels positioned on the roof of a residential or business building or structure is known as a rooftop solar power system, sometimes also known as a rooftop PV system. Photovoltaic modules, mounting systems, cables, solar inverters, and other electrical accessories are some of the system's many parts. Rooftop mounted systems are a type of dispersed generation since they are modest in comparison to utility-scale solar ground-mounted photovoltaic power stations with capacities in the megawatt range. Grid-connected solar power systems represent most rooftop PV plants. Residential rooftop PV systems normally have a capacity of 5 to 20 kW, whereas those installed on commercial buildings frequently have a capacity of 100 kW to 1 MW. Industrial-scale PV systems with a power range of 1 to 10 Megawatts can be installed on very big rooftops.

Declining Cost of Solar PV Systems

Equally domestically and internationally, the price of solar photovoltaic (PV) systems has significantly decreased in past few years. Households’ customers in South Africa, who largely install solar rooftop PV systems, are started to invest in renewable energy because of rapidly falling solar photovoltaic (PV) costs and drastically rising power pricing by ESKOM (South Africa's main electricity provider). Due to this, the market is projected to growth, during the forecast period.

Rooftop solar PV prices continued to drop price steadily in the year 2020. According to IRENA, the weighted-average LCOE (levelized cost of energy) of solar PV for residential and commercial PV projects in South Africa decreased to USD 0.091/kWh in 2020, 11.7% less than in the year 2019, and virtually decreased by 55% between the time duration of 2013 and 2020. In 2020, the total installed cost of solar PV for the residential sector was USD 1,575 per kW, a significant decrease from 2013.

Despite Covid-19's effects, rising countries demand for solar PV equipment and lengthy international shipping times have driven up the price of solar PV systems in South Africa. The growth in solar PV panel costs is anticipated to have a minimal effect on the demand for solar PV panels from the rooftop sector, nevertheless, as ESKOM power rates have climbed by about 300% over the past 10 years. The adoption of solar PV and related systems in South Africa is anticipated to be supported by the declining costs of rooftop solar panel procurement, installation, and maintenance, which will propel the country's solar rooftop PV sectors.

Market Growth is Accelerated by the Commercialization of Solar Electricity Integrated into Buildings

A system known as "building-integrated photovoltaics" (BIPV) involves incorporating photovoltaic modules into the building's exterior structure, such as the roof or the façade. BIPV systems can generate electricity while also acting as building construction materials, which reduces the need for fossil fuels and the emission of ozone-depleting gases while also improving the building's architectural and aesthetic appeal. Since this technology is still in its beginning and BIPV technology have more positive favourable impact in the forecast period. However, several businesses have recently joined the South African market and begun offering services like as developing and commissioning BIPV-capable buildings.

In April 2021, Visaka Industries in India, received a patent from the South African Patent Office for its 'ATUM' solar roof product. The patent, with 20-year term, was granted for the innovation known as "eco-friendly energy-generating roofs." A solar-power generating roof can be used as a roof, ATUM is composed of cement boards mixed with solar panels (made of poly- or mono-crystalline solar cells). When compared to standard rooftop installations on the same amount of land, the design boosts generation by roughly 20% to 40%, and when compared to galvanised steel sheets, the roof minimises the effects of heat and rain without the need for an insulation mat underneath. Visaka Industries has announced that the device is anticipated to be released commercially in South Africa shortly due to the nation's significant solar potential and serious ongoing energy crisis. Owing to which the BIPV can offer energy security and sustainable building materials since South Africa is now experiencing an energy crisis. Accordingly, in the future, the advancement and commercialization of affordable BIPV solutions would continue to represent a sizable opportunity for the South African rooftop solar industry.

Government Regulations and Financial Incentives Might Restrain the Market Growth

Although South Africa has considerable solar photovoltaic potential, there haven't been many incentives for the growth of small-scale rooftop solar PV installations, which are common in the majority of the world's rapidly expanding renewable energy markets. Due to a lack of restrictions, there many policies/standards and laws for developing small-scale solar energy projects. This affects both the rooftop solar PV sector and the larger renewable energy business in the country. Additionally, it discourages commercial and industrial (C&I) investors who are hesitant to take a chance on sizable bets in a setting where rules are hazy.

There are feed-in tariff programmes accessible across the nation. The country is still developing these tariffs for rooftop solar system. The Western Cape provincial authorities has put in place a Feed-in Tariff Scheme (FTS) at the provincial level, allowing solar PV systems to be grid-tied and feed in any extra electricity produced. Owing to this launch of scheme the demand of the Rooftop Solar across the nation is gaining traction.

Moreover, rooftop solar PV owners in the nation can profit from a net metering programme by pumping back energy into the grid at a rate of about USD 0.039 per kWh with benefiting a bi-directional electrical metre. However, switching from a pre-paid electricity metre to the necessary bidirectional electricity metre entails a large monthly admin bill and expense, which lessens the economic appeal, particularly for small residential consumers. Additionally, the South African government has falllen behind in terms of offering enough incentives for residential and C&I consumers to transition to rooftop solar PV, despite the lofty renewable energy targets established by the government. Throughout the forecast period, these factors are expected to have a negative impact on the South Africa rooftop solar market’s growth.

Recent Development

• A solar PV rooftop plant was built at the Cornubia Mall in Kwa-Zulu Natal, South Africa, by Investec Property in March 2022. The plant powers the entire mall and eases the strain on the electrical grid. Its projected DC and AC capacities are 5.25 MWp and 4.29 MW, respectively.
•  In Africa, SOLA Assets has developed over 305 MW of solar PV projects, while SOLA Build has constructed over 30 MW of embedded-generation solar PV projects, largely for the private sector.
• In 2021, Solareff solar PV plants generated enough electricity to power an electric vehicle for 380 million kilometres, prevented the burning of over 38 500 tonnes of coal, avoided the emission of over 70 500 tonnes of CO2, removed 1400 coal trucks from the road, and conserved 97 million litres of water.
• In 2021, solar energy with storage would be more affordable than grid electricity for most South African commercial and industrial clients. The levelized cost of electricity for a 1 MW rooftop solar installation with a 250-kilowatt energy storage system was predicted by the Institute for electricity Economics and Financial Analysis to be between USD 0.071 and 0.073 per kWh in 2022. In comparison to grid tariffs and the price of diesel generator-generated electricity, it is anticipated that installing solar rooftop systems for commercial and industrial clients will become less expensive during the projected period.

Market Segment

South Africa rooftop solar market

Market Players

Major market players in the South Africa