Solar panel sales in Burkina Faso have fallen sharply due to new regulations designed to boost local content. The Burkinabe Ministry of Trade has issued a decree requiring solar equipment importers to source a significant percentage of their products from within the country, a move that has sent shockwaves through the renewable energy sector.
Decline in Burkina Faso solar sales
Solar panel sales in Burkina Faso have plummeted, with the 2024 edition of the Solar Fair recording a dramatic drop in both attendance and sales. The event, which took place from November 1 to 11, 2024, saw only 5,000 visitors compared to 30,000 in the previous year. This decline has been directly attributed to the effects of Decree No. 2023-0652, which imposed a 30% local content requirement on solar equipment imported into the country.
According to L’Économiste du Faso, this regulation has led to an 83% drop in solar panel sales, amounting to a loss of 250 million CFA francs for the sector. The new rule, part of the local content law that took effect on August 22, has caused significant disruption. This sharp decline in Burkina Faso is part of a broader, more challenging trend in the region; total off-grid solar kit sales in Sub-Saharan Africa grew by only 1% in the first half of 2025, largely due to a 35% drop in cash sales.
Impact of the Local Content Law
The local content law aims to bolster domestic production and create jobs by requiring that a portion of solar equipment be sourced locally. However, solar panel distributors argue that Burkina Faso currently lacks the necessary industrial base to support this requirement. As a result, many distributors and Pay-As-You-Go (PAYGo) providers have been unable to comply, leading them to scale back operations or exit the market entirely.
The law is particularly challenging because the basics of solar panel manufacturing involve a highly complex and capital-intensive industry. The complete manufacturing process requires specialized raw materials and sophisticated manufacturing machines that are not readily available in the country. This has left many importers struggling to meet the 30% local content threshold, stalling the growth of the solar energy sector and creating a shortage of affordable products.
Burkina Faso Solar Market Overview
Burkina Faso, a landlocked country in West Africa, is rich in solar energy resources. With an average of 3,000 hours of sunshine per year and an average radiation of 5.5 kWh/m² per day, the country has immense potential for solar energy generation. However, the high cost of importing solar equipment has historically hindered the widespread adoption of this clean technology.
In recent years, the government has taken steps to promote renewable energy through a national Rural Electrification Strategy and the establishment of the national utility, SONABEL, which oversees the implementation of renewable energy projects. International organizations such as the World Bank and the African Development Bank have also provided critical funding for solar initiatives. Despite these efforts, the sector remains underdeveloped, with solar power accounting for less than 1% of the country’s total energy production. The recent sales decline further complicates the nation’s path toward its renewable energy goals.
Future of Solar Energy in Burkina Faso
The future of solar energy in Burkina Faso is at a critical juncture. While the government’s commitment to promoting renewable energy is clear, the lack of domestic production capabilities poses a significant obstacle. Solar companies and industry stakeholders argue that without a robust local manufacturing industry, the local content law is difficult—if not impossible—to implement effectively. This sudden implementation risks undermining years of progress in expanding energy access, particularly in rural and underserved communities.
To address this impasse, stakeholders are calling for a review of the law. They suggest a more gradual, phased approach to local content requirements could help bridge the gap between imported and locally produced components, allowing a domestic industry time to develop. The potential for solar energy in Burkina Faso remains significant, but unlocking it will require a balanced regulatory approach. Achieving this potential will depend on strategic investments in local capacity, a challenge highlighted by the considerable plant cost breakdown for such facilities, and a regulatory framework that supports sustainable growth for the entire sector.
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