The solar energy market in South Africa is set to experience significant expansion in the coming years, with Technavio’s latest research predicting a substantial increase of 2307.36 thousand toe from 2022 to 2027. This growth momentum is expected to maintain a robust CAGR of 29.91% during the forecast period.
The South African solar energy market is gaining traction due to the nation’s advantageous geographic location, which provides ample sunlight. The government’s supportive policies and investments in renewable energy initiatives are contributing to the increased focus on solar energy solutions. As the demand for energy rises, South Africa is turning to solar power as a viable solution, thereby pressuring conventional power generation plants.
The market is primarily segmented by application, with grid-connected systems taking the lead. Grid-connected solar PV systems allow for the direct supply of solar energy to buildings, reducing the need for energy storage systems. This approach benefits from the growing number of renewable energy sources, digitalization, and mobility. The decreasing cost per kilowatt-hour, thanks to the adoption of grid-connected rooftop solar systems and mini-grids, further boosts this segment’s growth. Government initiatives, such as the Large-Scale Grid Connected Solar Park Program, further support the development of solar energy networks in the region.
The solar energy market in South Africa is characterized by the presence of numerous global and regional players. Some of the prominent companies operating in this market include ARTsolar Pty Ltd, Canadian Solar Inc., Eaton Corp. Plc, Enel Spa, Ener G Africa, ENGIE SA, FOXESS CO. LTD., Genergy, IBC SOLAR AG, Jetion Solar China Co. Ltd., Jiangsu Seraphim Solar System Co. Ltd., Jiangsu Zhongli Group Co. Ltd., JinkoSolar Holding Co. Ltd., Renenergy Ltd, Schneider Electric SE, Sharp Corp., Soventix GmbH, SunPower Corp., Trina Solar Co. Ltd., and Energy Partners Solar Pty Ltd.
These companies offer a wide range of solar energy solutions, from solar modules to power generation and green power services. As South Africa continues its push toward sustainability and clean energy, these players play a vital role in shaping the nation’s energy landscape.
South Africa’s solar energy market is on a trajectory of substantial growth, driven by a supportive government, increasing energy demand, and a favorable geographic location. The increasing adoption of grid-connected solar systems, along with governmental initiatives, is expected to further boost the solar energy sector, making it a key player in the country’s future energy landscape.
