Africa’s Solar Power Surge: Kenya Leads New Wave Of Growth And Investment Across The Continent

The African solar market is entering a phase of rapid expansion and structural change, driven by rising demand for clean energy, growing investor interest, and accelerating deployment across multiple regions. According to the Global Solar Council, the African solar sector is expected to grow by 42 percent in 2025, with an additional 23 GW of capacity projected to be installed by 2028. This would more than double the continent’s current installed capacity and marks a significant shift from what was previously seen as a slow-moving renewable market. Growth is now spreading beyond traditional leaders, signaling a wider regional transformation.

A major factor supporting this expansion is the sharp increase in Chinese solar panel imports. Between January and July 2025, Africa imported over 9,516 megawatts worth of panels, representing a 60 percent rise compared to the previous year. Despite this momentum, solar PV still contributes only around 3 percent of Africa’s total electricity generation, leaving substantial room for development and investment.

However, the continent faces major barriers, particularly related to financing. The cost of capital for energy projects in Africa remains significantly higher than in developed markets, ranging from three to seven times more expensive. Additionally, Africa currently attracts just 3 percent of global energy investment, far below the estimated US$200 billion per year required to achieve universal energy access and climate-related goals. Unlocking this potential will rely heavily on new funding models, risk-mitigation tools, blended finance, and greater private sector participation.

Kenya stands out as one of the most active solar markets in Africa and has made notable progress in the past six months. Already recognized for leadership in geothermal and hydropower, the country is now rapidly scaling up solar deployment across utility-scale, commercial-industrial, residential, and agricultural sectors. In July 2025, Sun King secured a landmark US$156 million financing round backed by Citigroup and British International Investment. The funding is expected to expand solar access to off-grid communities and demonstrates strong confidence from international investors in Kenya’s renewable energy environment.

Significant developments are also taking shape in agriculture. The Solar Energy for Agricultural Resilience (SoLAR) Phase II project, launched in October 2025, is designed to deploy solar-powered irrigation systems aimed at improving food production and supporting climate-resilient farming. The project is led by the International Water Management Institute and highlights the growing interest in agrivoltaics.

Commercial and industrial solar solutions are growing rapidly as well. Mabati Rolling Mills commissioned a 2.9 MW rooftop solar plant at its Mariakani facility in September 2025, while Empower New Energy expanded its partnership with Abyssinia Group Industries to develop a 9 MWp solar project. Meanwhile, the residential solar segment continues to expand, supported by increased product availability and demonstrations such as KSTAR’s residential energy offerings at the Solar Africa 2025 exhibition.

Kenya’s progressive policy framework is playing a central role in shaping market confidence. The National Energy Policy 2025-2034 outlines a pathway to universal electricity access by 2030, tax incentives make solar imports more affordable, and the Renewable Energy Auctions Policy introduced in 2021 replaced the old tariff system to improve competitive pricing. The country has also set a target of achieving a 100 percent renewable energy grid by 2030.

Key emerging trends expected to drive future growth include agrivoltaics, renewable hydrogen opportunities, e-mobility adoption, and expanded off-grid solutions for rural electrification. As Africa accelerates toward energy transition, the solar industry is positioned to play a transformative role in both economic development and climate sustainability.