Rising electricity costs in Kenya are fueling a sharp increase in solar licences for PV technicians, contractors, manufacturers, and importers. Solar energy is fast becoming the preferred solution, offering consumers long-term savings and reducing their dependence on the national grid.
Rising Electricity Prices Fuel Solar Demand
Kenya’s energy sector is undergoing a major transformation as rising electricity costs and a greater focus on renewable energy push businesses and households to seek affordable alternatives. This shift is clearly reflected in the growing number of licences issued to solar photovoltaic (PV) technicians, contractors, manufacturers, and importers—a direct result of the surging demand for solar power.
This surge is largely driven by skyrocketing electricity prices. The country’s main provider, Kenya Power, has increased tariffs to cover rising fuel costs and infrastructure investments, while a fluctuating exchange rate has further driven up prices by increasing the cost of imported resources. These factors have prompted consumers to look for more reliable and cost-effective energy sources.
Solar energy has emerged as the leading solution. Beyond being clean and renewable, it offers significant savings on electricity bills and reduces reliance on an unpredictable national grid, making it an attractive long-term alternative.
Growth in Solar Licences Reflects Expanding Market
The expanding solar market in Kenya is clearly reflected in the growth of new licences. According to the Energy and Petroleum Regulatory Authority (EPRA), 154 licences were issued to solar PV technicians during the 2023/24 financial year, with an additional 355 granted to solar contractors, manufacturers, and importers.
The five-year trend is even more striking. In the 2018/19 fiscal year, Kenya had 741 licensed solar PV firms and contractors; by 2023/24, that number had more than doubled to 1,603. Similarly, the number of licensed solar PV workers nearly doubled over the same period, growing from 1,080 to 1,983.
High electricity costs are the primary economic driver pushing consumers toward solar power. While the initial cost of a solar installation can be high, the long-term savings on energy bills make it a worthwhile investment.
The Kenyan government has also played a significant role through policies and incentives that make solar more accessible. For instance, tax exemptions on solar equipment and streamlined licensing procedures have lowered financial and administrative barriers, while other initiatives aimed at achieving universal energy access have further encouraged the shift.
Technology and Environment Fueling Solar Growth
Technological advancements have also been a key factor in solar’s growth in Kenya. PV systems have become more efficient and affordable in recent years, while improved solar panels and energy storage solutions like lithium-ion batteries ensure a more consistent supply. These developments are making solar an increasingly viable solution for both residential and commercial use.
A growing awareness of solar power’s environmental benefits is also helping to drive demand. By choosing solar, consumers and businesses can actively reduce their carbon footprint, an action that aligns with Kenya’s national commitment to promoting green energy and meeting international climate targets.
The Future of Solar in Kenya
As more people and businesses turn to solar, the surge in licences signals a fundamental transformation of Kenya’s energy landscape. Offering both long-term savings and significant environmental benefits, solar power is poised to play a crucial role in the nation’s energy future.
