Rwanda Solar Report

Discover comprehensive insights into the statistics, market trends, and growth potential surrounding the solar panel manufacturing industry in Rwanda

  1. Climate top. (2024). Daylight hours in Kigali, Rwanda. Retrieved July 2, 2024, from https://www.climate.top/rwanda/sunlight/
  2. Profilesolar. (2024). Solar PV analysis of Rubavu, Rwanda โ€“ profileSOLAR.com. Retrieved July 2, 2024, from https://profilesolar.com/locations/Rwanda/Rubavu/#:~:text=In%20terms%20of%20electricity%20output,kW%20of%20installed%20solar%20power.
  3. Natravinda, F. (2023, March 27). Rwanda among countries with cheapest electricity tariffs – Report. AllAfrica. Retrieved July 2, 2024, from https://allafrica.com/stories/202303270035.html#:~:text=Rwanda’s%20average%20price%20of%20electricity,per%20kWh%20for%20large%20businesses.
  4. Rawanda Energy Group. Electricity access. Retrieved July 2, 2024, from https://www.reg.rw/what-we-do/access/
  5. Energy Private Developers. Total on-grid installed in Rwanda currently. Retrieved July 2, 2024, from https://epdrwanda.com/energy-sector/solar/#:~:text=Rwanda’s%20total%20on%2Dgrid%20installed,installed%20is%20currently%20238.052MW.
  6. Mininfra. (2019). Rwanda targets 60% of renewable resources by 2030, Permanent Secretary Uwase Patricie. Retrieved July 2, 2024, from https://www.mininfra.gov.rw/updates/news-details/rwanda-targets-60-of-renewable-resources-by-2030-permanent-secretary-uwase-patricie
  7. Van Der Plas, R. (2009). Target market analysis Rwandaโ€™s micro-hydro energy market. Water Portal Rwanda. Retrieved July 2, 2024, from https://waterportal.rwb.rw/sites/default/files/inline-files/gtz2009-en-targetmarketanalysis-hydro-rwanda.pdf
  8. Rwanda Utilities Regulatory Authority (RURA). (2023). Electricity statistics report as of the second quarter (April – June) of the year 2023. Retrieved July 2, 2024, from https://rura.rw/fileadmin/Documents/Energy/Statistics/Electricity_Statistics_Report_as_of_the_Second_Quarter_2023.pdf
  9. Rawanda Energy Group (REG). Power outages. Retrieved July 2, 2024, from https://www.reg.rw/customer-service/power-outages/
  10. Rawanda Energy Group (REG). (2021). More than 72,000 households were provided with solar home systems. Retrieved July 2, 2024, from https://www.reg.rw/media-center/news-details/news/20202021-more-than-72000-households-were-provided-with-solar-home-systems/
  11. Rwanda Utilities Regulatory Authority (REG). (2024). Solar. Retrieved July 2, 2024, from https://www.reg.rw/what-we-do/generation/solar/
  12. Rwanda Utilities Regulatory Authority (REG). (2024). Projects to increase electricity generation capacity and access by 2024. Retrieved July 2, 2024, from https://www.reg.rw/media-center/news-details/news/projects-to-increase-electricity-generation-capacity-and-access-by-2024/
  13. Worldsalaries. (2024). How much does a solar energy installation manager make in Kigali? Retrieved July 2, 2024, from https://worldsalaries.com/average-solar-energy-installation-manager-salary-in-kigali/rwanda/
  14. Worldometer. (2024). Population of Rwanda. Retrieved July 2, 2024, from https://www.worldometers.info/world-population/rwanda-population/
  15. Vibe. (2023). Warehouse for rent in Special Economic Zone (SEZ). Retrieved July 2, 2024, from https://vibe.rw/property/warehouse-for-rent-in-special-economic-zone-sez/
  16. WASAC Group. (n.d.). Tariff and charges. Retrieved July 2, 2024, from https://www.wasac.rw/publications/tariffs-and-charges
  17. Murukali. (n.d.). Retrieved July 2, 2024, from https://murukali.com/en-weshipworldwide/collections/office
  18. Papeteri. (n.d.). Retrieved July 2, 2024, from https://papeteri.com/
  19. Vibe. (n.d.). Offices for rent in Kigali. Retrieved July 2, 2024, from https://vibe.rw/offices-for-rent-in-kigali/
  20. Rwanda Utilities Regulatory Authority (RURA). (2015). Solar photovoltaic regulations. Retrieved July 2, 2024, from https://www.rura.rw/fileadmin/docs/Draft_Solar_PV_Regulations_-_FOR_COMMENTS.pdf
  21. Ministry of Infrastructure. (2022). Approved ministerial guidelines on minimum standards requirements for solar home systems. Retrieved July 2, 2024, from https://www.reg.rw/fileadmin/user_upload/Approved_Ministerial_Guidelines_on_Minimum_standards_Requirements_for_Solar_Home_Systems.pdf
  22. FMO. (2014). FMO invests in first utility scale solar project in Rwanda. Retrieved July 2, 2024, from https://www.fmo.nl/news-detail/2f270d0a-3250-4a5c-b592-59fb37d576d6/fmo-invests-in-first-utility-scale-solar-project-in-rwanda
  23. GESTO. (n.d.). Rwanda signs deal for new solar plant in Kayonza. Retrieved July 2, 2024, from https://gestoenergy.com/rwanda-signs-deal-for-new-solar-plant-in-kayonza/

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

There is an average of 2109 hours of sunlight per year.1

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Figure 01 Average Sunlight hours/day in Rwanda

kWh per kWp installed

The annual average yield for solar installations in Rwanda is within 1,796 – 1,935kWh/kWp.2

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Average cost per kWh from utility company

So, the average residential electricity cost in 2022 was approximately 0.196 USD per kilowatt-hour.3

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Reliability of electrical power supply grid

  • As of April 2024, Rwanda has achieved a cumulative connectivity rate of 77.1% of households, marking significant progress in expanding access to electricity. This connectivity is comprised of 54.5% of households connected to the national grid and 22.7% accessing electricity through off-grid systems, primarily solar power. This demonstrates Rwanda’s commitment to increasing energy access and promoting sustainable energy solutions, with a notable focus on leveraging solar energy in Rwanda to reach remote and off-grid areas.4
  • By 2024, Rwanda plans to supply electricity to 100 percent of the population (52 percent through grid expansion and 48 percent through off-grid technologies).

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Detailed Information

  • All figures have been converted into USD
  • Total solar panel production capacity (installed)

    In 2022, Rwanda’s total on-grid installed solar energy is 12.08 MW.5

    Total solar panel production capacity (projected)

    Exact figure is not available however,6

    • Rwanda has set an ambitious target of achieving 100% electricity access by 2030, with a focus on ensuring that 50% of the population has access to the highest tiers (3-5) of electricity service.
    • To achieve this, the country plans to deploy a combination of on-grid and mini-grid access solutions.
    • Specifically, Rwanda aims to achieve a split of 52% on-grid access and 48% off-grid access, demonstrating a commitment to leveraging both traditional grid expansion and innovative off-grid solutions to meet its energy access goals.

    Average costs of various electricity generation sources (coal, natural gas, solar, etc)

    Major source of electricity production in Rwanda is Hydro. Here is the production cost.7

    • Hydro: Large-scale hydro is likely able to provide the lowest cost electricity in Rwanda, at 3-6 US cents/kWh and micro-hydro at 5-8 US cents/kWh.

    Percentages of various electricity generation sources (coal, natural gas, solar, etc)

    Distribution of electricity generation in Rwanda is given below:8

    Figure 02: Percentages of various electricity generation sources for year 2023

    Average daily availability of electricity from the national grid (measured in hours)

    Although detailed data on power outages is not readily available, the Rwanda Energy Group’s (REG) 2022-2023 report provides insight into the efforts being made to enhance infrastructure and maintenance, with the goal of reducing power outages. For up-to-date information on ongoing and past power outages, including the duration of outages, users can visit the REG’s website at https://www.reg.rw/customer-service/power-outages/. This resource provides transparency and allows users to stay informed about the status of power outages in Rwanda.9

    Number of residential solar panel installations

    Current Installations10

    • During the financial year 2020/2021, a total of 72,202 households in Rwanda got electricity.
    • These together with the 178,221 households which were connected to the grid during the last year, increase the current access to electricity in Rwanda to 65% including households connected to the grid and those using off-grid solutions.

    Projected Installations

    • It is expected to reach to more than 350,000 households in the country.

    Total number of solar farms (installed and projected)

    11

    Installed Solar Farms

    As of 2024, Rwanda has three operational solar power plants.

    Projected Solar Farms

    Not available

    Off-grid market demand for solar panels (current and projected)

    12

    Current Demand

    • High Percentage of Off-Grid Population: A significant portion of Rwanda’s population lives in rural areas with limited or no access to the national grid. This has created a strong demand for off-grid solar solutions. Although the use of off-grid solutions is new in Rwanda, it has already reached more than 400,000 households.
    • Government Initiatives: The Rwandan government, through various initiatives, has been promoting the adoption of solar home systems (SHS) and other off-grid solutions to increase electricity access.
    • Private Sector Participation: Over 40 solar companies are active in Rwanda’s off-grid solar market, indicating a robust and growing sector.

    Projected Demand

    • National Electrification Plan: Rwanda aims to achieve universal electricity access by 2024, with a significant portion (48%) expected to be served through off-grid solutions, primarily solar energy.

    On-grid market demand for solar panels (current and projected)

    11

    Current Demand

    On-Grid Solar Market

    • The National Strategy for Transformation (NST1) aims for universal access to electricity by 2024, with a significant portion of this expected to come from renewable sources, including solar energy.
    • As of recent reports, Rwanda has several operational solar power plants contributing to the national grid. These include the Rwamagana Gigawatt Solar Power Plant (8.5 MW), the Nasho Solar Plant (3.3 MW), and others, cumulatively providing around 12.05 MW of solar capacity.

    Projected Demand

    Exact value is not given but;

    • By 2024, Rwanda plans to supply electricity to 100 percent of the population (52 percent through grid expansion)

    Average monthly income of workers in solar industry (labor cost)

    A Solar Energy Installation Manager working in Kigali will typically earn around approximately 8,770.22 USD. The salary can range from the13

    • Lowest average of 4,740.20 USD
    • Highest average of 13,212.97 USD.

    Population of the country

    The current population of Rwanda is 14,410,469.14

    Average overhead costs of solar panel production (with a brief breakdown)

    Estimate for Factory Rent15

    Average Warehouse Rental Cost

    • Average cost per square meter: USD 5.00 per square meter
    • A nominal management/service fee of $0.2 per square meter to ensure a well-maintained and secure environment.
    • Rent escalation is set at 2.5% every two years.

    Warehouse in Masoro Economic Zone Phase 1:

    Industrial space (504 sqm): Monthly rent of $2,520 Specific.

    Industrial Electricity Rates 3

    So, the average electricity cost in 2022 was approximately 0.073USD per kilowatt-hour for business.

    Water Costs16

    The flat rate per cubic meter for industries is 0.57 United States Dollars (USD).

    Key Components of Administrative Costs

    Salaries and Wages:14

    Worker of solar industry earn as follow:

    • Lowest average of 4,740.20 USD.
    • Highest average of 13,212.97 USD.

    Office Supplies and Equipment

    Costs for office Stationary1817

    Category Item Price (USD)
    Pens Stylon Pen (Bic) $5.75
    Ball Pen $3.83
    Uni-Ball Pen From $1.53
    Pocket Pen $8.43
    Compo Pen $1.15
    Fixable Pen $1.15
    Correction and Writing Tools BLANCO RETYPE / WHITE WASH From $0.77
    Correction Pen $1.92
    Highlighter $1.53
    Permanent Marker (SNOWMAN) From $1.92
    Desk Organization Desk Organizer (210 x 184 x 108 mm) $9.20
    PVC Desk Blotter (580 x 450 mm) $11.50
    Desktop Mesh Pen Pencil Holder From $2.68
    Files and Folders Suspension Files From $0.54
    Metal Spring Clip File Folder $1.38
    Spring File with Plastic Fastener $1.15
    Box File in Plastic $2.91

    Rent for Office Space19

    If the administrative office is separate from the factory, rental costs for the office space;

    • On average, you can expect to pay at least $7/day for serviced office space in Kigali Heights.

    A summary of the energy infrastructure

    Electricity Generation

    • Rwanda generates electricity primarily through a mix of hydropower, thermal power (using peat and diesel), and increasingly, renewable energy sources such as solar power.
    • As of recent data, Rwanda’s electricity generation capacity is around 250 megawatts (MW).
    • Hydropower is the largest source of clean electricity, contributing significantly to the energy mix, along with an expanding contribution from solar power projects.

    Transmission & Distribution

    • Rwanda’s transmission infrastructure comprises a national grid system that distributes electricity across the country.
    • The grid operates at various voltage levels, with primary transmission lines at 110 kV and 220 kV, ensuring extensive coverage that reaches urban and rural areas.
    • The interconnected grid system enhances robustness and reliability, with ongoing plans to expand and upgrade the grid to meet growing energy demands and integrate more renewable energy sources.

    Energy Access

    • Rwanda has made significant progress in improving electricity access.
    • As of recent estimates, around 60% of the population has access to electricity, with efforts underway to achieve universal access by 2024.
    • These efforts include both grid extensions and off-grid solutions, such as solar home systems, particularly in remote and rural areas.

    Energy Exports

    • While Rwanda is not a major energy exporter, it has potential for regional electricity trade.
    • The country is part of the East African Power Pool (EAPP) and has plans to export surplus electricity generated from renewable sources, particularly as its solar and hydropower capacities expand.

    Some of the government regulations surrounding solar panel production

    Rwanda has implemented several regulations to promote and manage the deployment of solar panels. Here are some key regulations:2021

    Rwanda Utilities Regulatory Authority (RURA) Guidelines

    • Licensing: All entities involved in the production, importation, and distribution of solar panels must obtain a license from RURA.
    • Tariff Regulation: Sets guidelines for pricing and selling solar energy to ensure fairness and affordability.
    • Technical Standards: Ensures compliance with technical and safety standards for solar panels and related equipment.

    Rwanda Standards Board (RSB) Standards:

    • RSB RS 350:2016: Specifies standards for photovoltaic (PV) modules, including performance, durability, and safety requirements.
    • RSB RS 358:2016: Covers installation and maintenance standards for solar PV systems to ensure safety and efficiency.

    Environmental Management Act (2005):

    • Environmental Impact Assessment (EIA): Mandatory for all solar panel production facilities to assess and mitigate environmental impacts.
    • Permits: Production facilities must obtain environmental permits from the Rwanda Environment Management Authority (REMA).

    Grid Connection Code (2019):

    • Connection Standards: Defines the technical requirements for connecting solar power systems to the national grid, including voltage and frequency standards.
    • Net Metering: Allows solar panel owners to receive credit for excess electricity fed back into the grid, encouraging the adoption of solar power.

    Government initiatives in solar panel production (includes investments and subsidies)

    Rwanda has taken several initiatives to promote solar panel production and adoption. Here are some key efforts:2021

    National Energy Policy and Strategy (2015-2030):

    • Objective: To increase the use of renewable energy, including solar, and reduce reliance on fossil fuels.
    • Mandates: Encourages the development of solar energy projects and provides a strategic framework for renewable energy expansion.

    Investment Promotion and Facilitation Law (2015):

    • Tax Incentives: Investors in solar panel production are eligible for various tax incentives, including corporate income tax holidays for up to 7 years and import duty exemptions on renewable energy equipment.
    • Investment Certificate: Required for businesses to access these incentives, issued by the Rwanda Development Board (RDB).

    National Strategy for Transformation (NST1, 2017-2024):

    • Objective: Increase the share of renewable energy in the national energy mix to 60% by 2024.
    • Action Plan: Includes specific measures to promote solar energy production, such as facilitating investments in solar projects and improving the regulatory environment.

    Rwanda Energy Sector Strategic Plan (ESSP, 2018-2024):

    • Goal: Achieve universal access to electricity by 2024, with a significant portion coming from renewable sources including solar.
    • Support for Solar Projects: Provides a framework for supporting large-scale solar power projects and the integration of solar energy into the national grid.

    Renewable Energy Fund (REF):

    • Managed by: Rwanda Development Bank (BRD).
    • Funding: Offers low-interest loans and grants to businesses and individuals investing in solar energy production and installations.
    • Target: Aims to increase access to off-grid solar systems in rural areas, supporting both residential and commercial solar projects.

    Notable solar projects in the country (installed and projected)

    22

    Installed Projects

    GigaWatt Global Solar Field

    • Location: Rwamagana District, Eastern Province
    • Capacity: 8.5 MW
    • Details: This is Rwanda’s first large-scale solar power plant. It was inaugurated in 2015 and supplies approximately 6% of the country’s electricity. The plant covers an area of 20 hectares and consists of over 28,000 solar panels.
    • Significance: This project has significantly boosted Rwanda’s renewable energy capacity and serves as a model for future solar developments in the region.

    Jali Solar Power Plant

    • Location: Kigali
    • Capacity: 1.2 MW
    • Details: Located on Mount Jali, this solar plant was built to provide a sustainable energy source for Kigali and reduce reliance on fossil fuels.
    • Significance: It demonstrates the viability of urban solar installations and contributes to Kigaliโ€™s electricity supply.

    Musanze Solar Power Plant

    • Location: Musanze District, Northern Province
    • Capacity: 3.6 MW
    • Details: This plant aims to support the energy needs of the Northern Province and enhance grid stability.
    • Significance: It contributes to regional energy security and supports local development.
    23

    Projected Projects

    Bugesera Solar Project

    • Location: Bugesera District, Eastern Province
    • Capacity: 10 MW
    • Details: Scheduled to be completed by 2025, this project will help meet the growing energy demand in the Eastern Province.
    • Significance: It is expected to play a key role in achieving Rwandaโ€™s renewable energy targets and improving electricity access in rural areas.

    Karongi Solar Plant

    • Location: Karongi District, Western Province
    • Capacity: 7.5 MW
    • Details: This project is planned to begin construction in 2024 and will significantly increase renewable energy capacity in the Western Province.
    • Significance: It will support regional energy needs and contribute to the national grid.

    Nyagatare Solar Park

    • Location: Nyagatare District, Eastern Province
    • Capacity: 20 MW
    • Details: This is one of the largest planned solar projects in Rwanda, expected to be operational by 2026. It will consist of state-of-the-art solar PV technology.
    • Significance: It will substantially enhance Rwandaโ€™s renewable energy capacity and support the governmentโ€™s goal of achieving universal electricity access.

    Rusizi Floating Solar Project

    • Location: Lake Kivu, Rusizi District
    • Capacity: 5 MW
    • Details: This innovative project involves installing solar panels on the surface of Lake Kivu. Construction is set to begin in 2024, with expected completion by 2027.
    • Significance: It will utilize Rwandaโ€™s water bodies for renewable energy generation and minimize land use conflicts.

    Some of the notable solar companies (plus brief details on what they do)

    MeshPower

    Website: https://www.meshpower.co.rw/

    Projects:

    • Microgrid Installations: Deployed microgrids in several villages providing clean energy to households and businesses.
    • Solar Home Systems: Distributed solar home systems to off-grid households.

    Services:

    • Solar microgrids
    • Solar home systems
    • Pay-as-you-go financing
    • Maintenance and support services

    Solar Power Solutions Pvt Ltd

    Website: https://www.solarpspl.com/solar-company-in-rwanda

    Projects:

    • Solar Installation: Specializing in customized solar projects for residential, commercial, and industrial clients.
    • Solar Panel Manufacturing and Supply: Providing premium-grade solar panels for optimal energy generation.

    Services:

    • Solar installation
    • Solar energy solutions
    • Manufacturing and supplying high-quality solar panels

    ARC Power

    Website: https://www.arcpower.co/our-story.html

    Projects:

    • Large Scale Solar Mini-Grids: Connecting up to 1,000 houses per generation unit to provide sustainable community power.

    Services:

    • On-grid and off-grid energy generation and distribution infrastructure
    • Mini-grid development and operation

    HELLO RENEWABLES

    Website: https://hellorenewables.com/

    Services:

    • Solar Project Development and Consultancy
    • Collaborative Solar Assets and Products Purchase
    • Evaluation and Design of Solar Projects
    • Procurement
    • Installation
    • System Commissioning
    • Energy Storage Solutions / Battery Backup

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