South Africa Solar Energy Market, By Technology (Solar Photovoltaic (PV) and Concentrated Solar Power (CSP)), By Solar Module (Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon Cells, Others), By End-Use (Residential, Commercial, Industrial), By Application (Electricity Generation, Lighting, Heating, Charging), By Region, Competition, Forecast and Opportunities, 2018-2028F

Since 2018, solar installations in the country have grown significantly. The total installed capacity in South Africa reached 4822 MW in 2021, representing an increase of over 15.55% compared to the previous year’s value.

The word "solar energy" refers to energy that is extracted from solar radiation and can be converted into several forms, including heat and electricity. Solar energy is an exciting replacement for traditional fossil fuels that are scarce, contributing to climate change since it is sustainable and plentiful. Solar energy can be generated using a variety of technologies, such as photovoltaic cells and concentrated solar power systems, which convert sunlight directly into electricity and utilize the heat from the sun to generate energy for a variety of uses. There are several benefits to using solar energy, including a reduction in greenhouse gas emissions and dependency on fossil fuels, as well as the promotion of a cleaner and more sustainable energy future.

Government Efforts to Reduce Over Reliance on Coal Based Power Plant

South Africa is the seventh-largest producer of coal in the world, and their thermal power plants are mostly dependent on coal. Nearly 82% of the total installed capacity and 76% of the whole energy production in 2021, came from coal-based thermal power plants. With 15 operating power plants and a net installed capacity of about 39.3 GW as of 2021, South Africa ranked as the 11th greatest greenhouse gas emitter in the world.

Additionally, the production of power is more environmentally damaging and produces a lot more greenhouse emissions. ESKOM estimates that upgrading the utility's aging coal-fired fleet to meet minimal emission regulations will cost about (USD 15140 Million) ZAR 300 billion. The state-owned utility has developed a plan to address rising energy demand and offer affordable power after realizing the futility of running an outdated coal-fired fleet in the face of expanding demand.

Due to the country's present energy crisis, steady growth in power consumption is anticipated during the predicted period. In order to adequately make up for the retired capacity and fulfil the rising demand for energy, South Africa must balance the closure of its coal-fired power with increase in its new renewable capacity. To reorient its operations towards the production of renewable energy and the reduction of emissions, the national power company, ESKOM, is also attempting to reform its organisational capacities. During the projection period, these initiatives are anticipated to boost the prospects for renewable energy sources like solar energy, thereby increasing the demand for solar energy.

Reduction in Cost of Solar Energy installation & Growing Usage of Solar Photovoltaic (PV) Technology Fuelling the Market Growth

Around the world, between 2010 and 2020, the cost of solar PV decreased by around 82%. In South Africa, over the same time, comparable patterns were observed. Consequently, variables like the falling cost of solar PV and related technologies are crucial ones for the growing use of solar energy.

Moreover, in comparison to concentrated solar power, solar photovoltaic (PV) technology is predicted to account for the largest share. This is because of the country's supportive policies and increased emphasis on meeting various capacity objectives. During the projected phase, this will aid in the expansion of South Africa's entire solar energy sector. For instance, the South African solar power industry is directed by solar photovoltaic (PV) technology with an installed capacity of 4322 MW. With accelerating technical advancements and simple installation processes, solar PV technology has been evolving more quickly. For the same reason, solar PV technology is preferred by residential, commercial, and industrial customers over other renewable energy sources like wind and biomass.

Rising Consumption of Natural Gas Restraining the Market Growth

South Africa has been attempting to diversify its energy sources by importing natural gas in the form of LNG as its energy problem got worse in the last years. Due to South America's poor indigenous gas reserves, only 3,000 MW of gas-fired capacity was allotted in the 2019 Integrated Resource Programme (IRP). However, since the cost of LNG has decreased in the country, solar energy has become a more appealing choice for the country to avoid a repeat of its current energy crisis.

For instance, the first floating LNG storage facility in the nation will be an 8,000-ton LNG barge South African Shipyards in Durban. It will be anchored at the Coega port in the Port of Ngqura. Additionally, the company gained final authorisation from the Transnet National Port Authority (TNPA) in October 2020 to start LNG bunkering activities in the Port of Coega, in South Africa's Eastern Cape.

Concentrated Solar Power Technology in Solar Energy Propelling the Market Growth in the Forecast Period

The rapid movement towards

Recent Development

• In June 2021, according to an announcement made by ACWA Power, the Redstone. The total funding in the Solar Power Plant in South Africa is ZAR 11.6 billion (USD 590 Million).
• This 100 MW CSP facility is anticipated to go online in 2023 end and will capture solar energy using parabolic mirror technology.
• In addition, the South African government intends to spend more than the USD 8.5 billion in funds, announced at the COP26 climate meeting to wean South Africa off coal.

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Market Segment

South Africa Solar Energy Market is divided

Market Players