Ethiopia Solar Report

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

  1. Worlddata.info. Ethiopia. https://www.worlddata.info/africa/ethiopia/climate.php
  2. Weather-Atlas.com. Addis Ababa, Ethiopia – Climate. https://www.weather-atlas.com/en/ethiopia/addis-ababa-climate
  3. International Solar Alliance. (2022). Ethiopia. https://isolaralliance.org/images/flag%20pdf/Ethiopia.pdf
  4. GlobalPetrolPrices.com. (2023, December). Ethiopia Electricity Prices. https://www.globalpetrolprices.com/Ethiopia/electricity_prices/
  5. Afrobarometer. (2022, April 8). Still Lacking Reliable Electricity from the Grid, Many Africans Turn to Alternative Sources. https://www.afrobarometer.org/wp-content/uploads/2022/04/ad514-pap10-still_lacking_reliable_electricity_from_the_grid-many_africans_turn_to_alternative_sources-afrobarometer-10april22.pdf
  6. Energy Central. (2023, October 2). Electric Utility Gears to Power Addis Abeba’s Grids. https://energycentral.com/news/electric-utility-gears-power-addis-abeba-grids
  7. Mordor Intelligence. Ethiopia Renewable Energy Market – Growth, Trends, COVID-19 Impact, and Forecasts (2023 – 2028). https://www.mordorintelligence.com/industry-reports/ethiopia-renewable-energy-market
  8. Climate.Enterprise.Press. (2023, August 23). Masdar inks roadmap agreement for 500MW-worth of solar projects in Ethiopia. https://climate.enterprise.press/issues/2023/08/23/masdar-inks-roadmap-agreement-500-mw-worth-solar-projects-ethiopia/
  9. Zelalem Girma. (2016). Techno-Economic Feasibility of Small Scale Hydropower in Ethiopia: The Case of the Kulfo River, in Southern Ethiopia. https://doi.org/10.1155/2016/8037892
  10. Institute of Development Studies. (2022, March 3). Renewable Energy Procurement by Private Suppliers in Ethiopia. https://www.ids.ac.uk/publications/renewable-energy-procurement-by-private-suppliers-in-ethiopia-accessible-version/
  11. Satyanarayana Gaddada (2016). Wind energy potential and cost estimation of wind energy conversion systems (WECSs) for electricity generation in the eight selected locations of Tigray region, Ethiopia. Journal of Energy, 2016, 1–14. https://www.researchgate.net/publication/298907918_Wind_energy_potential_and_cost_estimation_of_wind_energy_conversion_systems_WECSs_for_electricity_generation_in_the_eight_selected_locations_of_Tigray_region_Ethiopia
  12. Economic Research Institute for ASEAN and East Asia. (2019). Renewable Energy Development in East Asia: Current Status and Future Prospects. Jakarta: ERIA. https://www.eria.org/uploads/media/12_RPR_FY2018_09_Chapter_5.pdf
  13. Our World in Data. Ethiopia: Energy Country Profile https://ourworldindata.org/energy/country/ethiopia
  14. Wikipedia. Electricity Sector in Ethiopia. https://en.wikipedia.org/wiki/Electricity_sector_in_Ethiopia
  15. Nagesso Beker Hadji (2019). Evaluation of solar energy potential in Ethiopia as power generation source: A case study at 100 selected cities. https://docs.neu.edu.tr/library/6814542816.pdf
  16. UNFCCC. (2023). Momentum for Change: Solar Lighting in Rural Ethiopia. https://unfccc.int/climate-action/momentum-for-change/activity-database/momentum-for-change-solar-lighting-in-rural-ethiopia
  17. Multiconsult. Metehara 100 MW Solar PV Plant, Ethiopia. https://www.multiconsultgroup.com/projects/metahara-solar-pv-plant-ethiopia/
  18. The Africa-EU Renewable Energy Cooperation Programme (RECP). (2019, October). Fact Sheet Ethiopia. https://www.ace-taf.org/wp-content/uploads/2019/10/Fact-sheet-Ethiopia.pdf
  19. The Africa-EU Renewable Energy Cooperation Programme (RECP). (2019, October). Fact Sheet Ethiopia. https://www.ace-taf.org/wp-content/uploads/2019/10/Fact-sheet-Ethiopia.pdf
  20. Global Off-Grid Lighting Association. (2023, July). PURE Market Assessment Report: Ethiopia. https://www.gogla.org/wp-content/uploads/2023/07/Gogla_PURE-Market-Assessment-Report-Ethiopia.pdf
  21. The World Bank. (2016, August 15). Off-Grid Solar: Lighting up Ethiopia. https://www.worldbank.org/en/news/feature/2016/08/15/off-grid-solar-lighting-up-ethiopia
  22. The Africa-EU Renewable Energy Cooperation Programme (RECP). Ethiopian Stand-Alone Solar Standards: Guidance for Adoption and Implementation. https://ace-taf.org/kb/ethiopian-stand-alone-solar-standards-guidance-for-adoption-and-implementation/
  23. Cornell Chronicle. (2024, April 15). Solar Energy Can Uplift Rural Ethiopians – But Access Is Hard to Come By. https://news.cornell.edu/stories/2024/04/solar-energy-can-uplift-rural-ethiopians-hard-come
  24. TimeCamp. Average Salary in Ethiopia 2024 – The Complete Guide. https://www.timecamp.com/average-salary/ethiopia/
  25. Paylab.com. Average Salary for Electrical & Power Engineering in Ethiopia. https://www.paylab.com/et/salaryinfo/electrical-power-engineering?lang=en
  26. Worldometer. (2024, July). Ethiopia Population (2024). https://www.worldometers.info/world-population/ethiopia-population/
  27. EthiopiaPropertyCentre.com. Warehouses For Rent in Ethiopia. https://ethiopiapropertycentre.com/for-rent/commercial/warehouses/showtype
  28. Cooperative Bank of Oromia. Diaspora Banking: Mortgage/Home Loan. https://coopbankoromia.com.et/diaspora-banking/mortgage-home-loan/
  29. The World Bank. (2015, March). Presentation on the Ethiopia Urbanization Review. https://collaboration.worldbank.org/content/usergenerated/asi/cloud/attachments/sites/collaboration-for-development/en/groups/research-partnership-for-sustainable-urban-development/groups/urbanization-reviews/documents/_jcr_content/content/primary/blog/presentation_on_the-lTXb/Presentation-on-the-Ethiopia-Urbanization-Review..pdf
  30. Wikipedia. Ethiopian Electric Power. https://en.wikipedia.org/wiki/Ethiopian_Electric_Power
  31. NRECA International. Strengthening Ethiopia’s Distribution Systems. https://www.nrecainternational.coop/what-we-do/core-services/strengthening-ethiopias-distribution-systems/
  32. International Trade Administration. (2024, January 18). Ethiopia – Country Commercial Guide. https://www.trade.gov/country-commercial-guides/ethiopia-energy .
  33. USAID. (2022, May). Power Africa Off-Grid Market Assessment Brief: Ethiopia. https://www.usaid.gov/sites/default/files/2022-05/PAOP-Market-Assessment-Brief-Ethiopia-English.pdf
  34. Gebreslassie, M. G. (2020). Solar home systems in Ethiopia: Sustainability challenges and policy directions. https://shura.shu.ac.uk/33067/1/Gebreslassie-SolarHomeSystems%28AM%29.pdf
  35. The Africa-EU Renewable Energy Cooperation Programme (RECP). (2021, September). Energy Africa: Ethiopia Refreshed Compact 2021. https://www.ace-taf.org/wp-content/uploads/2021/09/ENERGY-AFRICA_ETHIOPIA-REFRESHED-COMPACT-2021_Final.pdf
  36. PV Magazine. (2023, June 23). Ethiopian Utility Launches Tender for 20 Solar Minigrids. https://www.pv-magazine.com/2023/06/23/ethiopian-utility-launches-tender-for-20-solar-minigrids/
  37. Capital Ethiopia. (2019, April 15). Govt to Install Solar Panels in Eight Rural Towns. https://www.capitalethiopia.com/2019/04/15/govt-to-install-solar-panels-in-eight-rural-towns/
  38. Energy Alliance. (2022, October 11). DREAM Initiative Builds First Solar Mini-grid Powered Large Scale Irrigation System to Power Agriculture in Africa. https://energyalliance.org/dream-initiative/
  39. The World Bank. (2019, November). Ethiopia’s Energy Sector Transformation: Powering Economic Growth and Human Development. https://documents.worldbank.org/curated/en/249971573762529445/pdf/Ethiopias-Energy-Sector-Transformation.pdf
  40. Multiconsult. Metehara 100 MW Solar PV Plant, Ethiopia. https://www.multiconsultgroup.com/projects/metahara-solar-pv-plant-ethiopia/
  41. ESI Africa. (2019, February 13). Ethiopia Seeks to Install Four Solar PV Projects. https://www.esi-africa.com/industry-sectors/generation/ethiopia-seeks-to-install-four-solar-pv-projects/
  42. Fana Broadcasting Corporate. (2022, October 10). The Future of Solar Energy in Ethiopia. https://www.fanabc.com/english/the-future-of-solar-energy-in-ethiopia/
  43. Construction Review Online. (2023, June 28). Ethiopian Government Secures Financing for Establishment of 20 Solar Mini-Grids. https://constructionreviewonline.com/construction-news/ethiopian-government-secures-financing-for-establishment-of-20-solar-minigrids/
  44. Power Technology. (2024, July 21). Power Plant Profile: EEP Ethiopia Solar PV Park 2, Ethiopia. https://www.power-technology.com/data-insights/power-plant-profile-eep-ethiopia-solar-pv-park-2-ethiopia/
  45. Power Technology. (2024, July 21). Power Plant Profile: Mekele Solar PV Park, Ethiopia. https://www.power-technology.com/data-insights/power-plant-profile-mekele-solar-pv-park-ethiopia/
  46. Power Technology. (2024, July 21). Power Plant Profile: Humera Solar PV Park, Ethiopia. https://www.power-technology.com/data-insights/power-plant-profile-humera-solar-pv-park-ethiopia/
  47. Power Technology. (2021, December 15). Welenchiti Solar PV Park, Ethiopia. https://www.power-technology.com/marketdata/welenchiti-solar-pv-park-ethiopia/
  48. Power Technology. (2024, May 31). Power Plant Profile: Weranso Solar PV Park, Ethiopia. https://www.power-technology.com/data-insights/power-plant-profile-weranso-solar-pv-park-ethiopia/
  49. Power Technology. (2021, December 20). Metema Solar PV Park, Ethiopia. https://www.power-technology.com/marketdata/metema-solar-pv-park-ethiopia/
  50. GEM.wiki. Hurso Solar Farm. https://www.gem.wiki/Hurso_solar_farm
  51. Power Ethiopia. About Us. https://powerethiopia.com/
  52. Green Scene Energy PLC. Home. Green Scene Energy PLC. https://greensceneethiopia.com/
  53. Rensys Engineering & Trading PLC. Home. https://rensysengineering.com/
  54. ENF Solar. Solar Tech. https://www.enfsolar.com/solartech-5
  55. Get Green Solution. Home. https://www.getgreensolution.com/
  56. Lydetco. Home. https://lydetco.com/
  57. Dumsel Trading PLC. About Us. https://www.dumseltradingplc.com/about-us.html
  58. Gorgeous Solar Solution. Home. https://www.gorgeoussolar.com/

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Ethiopia experiences ample sunshine, with regions like Addis Ababa receiving approximately 2,665 hours of sunshine per year, Dire Dawa around 2,811 hours, and Oromiya and Southern Nations, Nationalities, and Peoples’ Region (SNNPR) about 2,336 hours annually. 1 Addis Ababa, in particular, enjoys between 8.1 to 9.8 hours of sunshine per day. 2

Read more

kWh per kWp installed

The average annual yield of PV installations in Ethiopia is 1,716 kWh/kWp/year. This signifies excellent technical feasibility for solar projects.3

Read more

 

Average cost per kWh from utility company

In December 2023, the average cost of electricity in Ethiopia was $0.006 per kWh for households and $0.021 per kWh for businesses. This cost is considerably lower than the global average during the same period. 4

Read more

 

Reliability of electrical power supply grid

Despite ongoing efforts to modernize the electrical grid, only about 32% of Ethiopian households have access to electricity.5 The grid faces challenges in terms of reliability and accessibility, particularly in the capital, Addis Ababa. Unreliability leads to power wastage, disruptions, and outages, affecting both residential and industrial consumers.  Rehabilitation projects are underway to enhance grid stability and reduce power wastage. 6

Read more

 

Detailed Information

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

    As of 2021, Ethiopia had a total installed solar capacity of 20 megawatts (MW), compared to 10 MW in 2015, indicating a growing solar sector. 7

    Total solar panel production capacity (projected)

    Ethiopia aims to deploy solar energy project yielding a total of 2 GW. The initial phase targets a capacity of 500 MW, followed by an expansion of 1.5 GW. 8

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

    • Hydropower: Hydropower remains the dominant source of electricity, with an estimated cost of around $0.028/kWh for small-scale projects. It is considered a relatively low-cost electricity source compared to other options. 9
    • Solar: Recent solar PV projects have achieved competitive electricity tariffs, ranging from $0.025/kWh to $0.075/kWh. 10
    • Wind: The cost of wind-generated electricity in Ethiopia varies significantly by site. Using the Polaris P15-50 wind turbine at the Shire site, the maximum cost is estimated to be $7.3148/kWh. 11
    • Biomass: While Ethiopia has abundant biomass resources, its utilization for electricity generation is limited. Estimates for the LCOE of biomass range from $0.06/kWh to $0.21/kWh. 12

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

    13

    • Hydropower: 95.65%
    • Wind: 3.83%
    • Solar: 0.26%
    • Bioenergy: 0.19%

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

    The average monthly power outage in Ethiopia occurs 8.2 times, each lasting for approximately 5.8 hours. Addis Ababa experiences shorter interruptions, averaging between 1 to 9 minutes per day. However, rolling blackouts remain a concern. 14

    Number of residential solar panel installations

    While the exact number of residential installations is not readily available, estimates suggest 150,000 solar home systems are scheduled for implementation. 15

    Additionally, a UNFCCC program has installed 22,000 solar home systems in Ethiopian villages, contributing to off-grid electrification efforts. 16

    Total number of solar farms (installed and projected)

    • Installed: Currently, Ethiopia has one major solar farm project, the Metehara Solar Power Plant. 17
    • Projected: Ethiopia has at least six planned solar farms, including the Mekele, Humera, and Masdar projects. This demonstrates a substantial commitment to solar energy development. 18

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

    • Current Demand: Ethiopia is the second-largest market for stand-alone solar devices in Sub-Saharan Africa, indicating a strong demand for off-grid solutions, especially in rural areas 19. The demand for solar pumps is significant, particularly for agricultural irrigation and water supply 20. Over 1.5 million rural Ethiopians have gained access to electricity through off-grid solar products 21.
    • Projected Demand: The off-grid solar market is expected to grow as the government targets 35% of household electrification through off-grid solutions by 2025.22

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

    • Current Demand: The on-grid market is in its initial stages, driven by the government’s National Electrification Program.
    • Projected Demand: The on-grid solar market is anticipated to increase as the government aims to electrify all households within 25 kilometers of the grid by 2030. 23

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

    Data on wages in the Ethiopian solar industry is limited due to its early stage of development. However, average monthly salaries in Ethiopia range from $100 to $300 24. People working in Electrical & Power Engineering in Ethiopia earn between $55 to $159, while those in Assembler Production earn between $49 to $100 per month.25

    Population of the country

    As of July 2024, Ethiopia’s population is estimated to be 129,852,987. 26

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

    • Factory Rent: The average price for warehouse rent in Ethiopia is Br 750,000 ($13,500) per month. The most expensive warehouses can cost up to Br 3,000,000 ($54,000) per month, while the cheapest option is around Br 250,000 ($4,500). 27
    • Mortgage Rates: Mortgage options in Ethiopia are limited. Diaspora mortgages offer a loan duration of up to 20 years with interest rates starting from 8.5% per annum.28
    • Industrial Electricity Rates: The electricity price for businesses is ETB 1.223 ($0.021) per kWh.4
    • Water Costs: Water tariffs for industrial users are based on a rising block system, with prices increasing as consumption rises. The average cost for piped water can range from 0.70 to 0.80 USD per cubic meter.29
    • Salaries and Wages: As mentioned earlier, salaries in the solar industry are estimated to range from $100 to $300 per month, with variations based on job roles and experience.24

    A summary of the energy infrastructure

    Electricity Generation: Ethiopia relies heavily on hydropower for electricity generation, with the Grand Ethiopian Renaissance Dam (GERD) being a significant project. There are efforts to diversify the energy mix with solar, wind, geothermal, and biomass. 30

    Transmission & Distribution: Ethiopian Electric Power (EEP) manages the national power grid, operating high-voltage transmission lines and substations30. The Ethiopian Electric Utility (EEU) handles electricity distribution to customers. 31

    Grid Infrastructure: The transmission network spans over 20,000 kilometers. However, the system faces challenges with outdated systems, particularly in rural areas, hindering reliability.32

    Private Sector Participation: Since 2017, Independent Power Producers (IPPs) have been allowed to construct and operate power plants for the national grid, diversifying energy supply.32

    Some of the government regulations surrounding solar panel production

    • Ethiopian Stand-Alone Solar Standards: The Ethiopian Standards Agency (ESA) and the Ethiopian Conformity Assessment Enterprise (ECAE) along with other government bodies have developed quality assurance (QA) standards for stand-alone solar products, including mandatory standards for pico-PV systems (up to 15W) and voluntary standards for solar home systems up to 350Wp. 22
    • Licensing Process for Off-Grid Companies: Off-grid solar companies must obtain licenses from the Ethiopian Energy Authority (EEA), navigating a process that is currently complex but is undergoing streamlining efforts. 33

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

    • National Electrification Program (NEP 2.0): The NEP 2.0 aims to achieve universal electricity access in Ethiopia by 2025 through a combination of grid expansion and off-grid solutions.33
    • Import Duty Exemptions: To encourage the growth of the solar market, the Ethiopian government has exempted solar products and components from import duties.34
    • Tax Incentives: Tax incentives exist for solar sector investors but their application lacks clarity.35
    • Solar Minigrid Projects: The Ethiopian Electric Utility is tendering the construction of 20 solar minigrids under the Access to Distributed Electricity and Lighting in Ethiopia (ADELE) program36.
    • Rural Electrification: The government is tendering bids to install solar panels in eight rural cities, aiming to generate 300 MW of solar energy.37
    • DREAM Initiative: The DREAM Initiative aims to scale up the deployment of solar mini-grids and solar-powered irrigation systems, contributing to both electrification and agricultural development.38
    • Renewable Energy Guarantees Program (REGREP): With support from the World Bank, the REGREP is facilitating the development of over 1,000 MW of solar and wind energy projects.39

    Notable solar projects in the country (installed and projected)

    Installed:

    • Metahara Solar PV Power Plant (100 MW): Located near Metahara, 200 km east of Addis Ababa, this plant supplies electricity to the national grid. 40
    • Lotus Energy Tigray Solar PV Park (500 MW): Under permitting in the Tigray region, construction is expected to commence in 2025. 41

    Projected:

    • Scaling Solar Gad Phase I (125 MW): Planned for the Somali region, this project is part of the Scaling Solar program. 42
    • Scaling Solar Dicheto Phase I (125 MW): Another Scaling Solar project, located in the Afar region.42
    • 20 Solar Minigrids (8 MW total estimated capacity): Distributed across various regions, including SNNP, Amhara, Somali, Oromia, and Sidama, these minigrids are part of the ADELE program.43
    • EEP Ethiopia Solar PV Park 2: Projected to power 750,000 households, construction is expected to commence in 2021.44
    • DREAM Initiative’s Solar Mini-grid Powered Large Scale Irrigation Systems: Implementing multiple minigrids and irrigation systems across Ethiopia.38
    • Mekele Solar PV Park (100 MW): Announced in Tigray, construction is expected to commence in 2025.45
    • Humera Solar PV Park (100 MW): Planned for the Tigray region, it is expected to generate 175 GWh of electricity. Construction is expected to start in 2025.46
    • Welenchiti Solar PV Park (187.5 MW): Announced in Oromia.47
    • Weranso Solar PV Park (100 MW): Planned for Amhara, construction is expected to begin in 2025.48
    • Metema Solar PV Park (125 MW): Announced for the Amhara region.49
    • Hurso Solar Farm: Located in Siti, Somali Region.50

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

    • Power Ethiopia (est. 2021): Specializing in solar systems and electromechanical systems, Power Ethiopia is a leading renewable energy company founded by Ethiopian American diasporas. They supply high-quality products and provide training programs.51
    • Green Scene Energy PLC: Focusing on providing off-grid communities with high-quality solar solutions, including solar home systems, pumps, and mini-grid systems.52
    • Rensys Engineering & Trading PLC: This company is a pioneer in the Ethiopian photovoltaic solar industry, offering turnkey solutions for solar mini-grid plants and solar home systems, with a focus on electrifying energy-deprived communities.53
    • Solar Tech PLC: This company is actively involved in the installation and maintenance of solar systems across Ethiopia, offering various solar products and services.54
    • Get Green Solution (GGS): GGS specializes in high-quality solar services and products, providing installation, maintenance, site visits, project planning, and engineering consultation.55
    • Lydetco: This company specializes in solar panel installations, including large-scale projects, and provides maintenance services.56
    • Golden Solar Energy: Providing comprehensive solar energy solutions, Golden Solar Energy is known for its large-scale solar panel installations.57
    • Gorgeous Solar Solution: This company is active in the Ethiopian market, focusing on the installation of solar panels for both residential and commercial clients. 58

Our Services

Business Plan E-Course 

Learn more about our free e-Course here

Full Scale Solar Production Service

Learn more about our full scale production service here

Consulting Service

Learn more about our free consulting service here

Turnkey Service

Learn more about our free turnkey service here

Are you interested in starting your own solar module production line?

We can help you start your own solar module production company. With our 100% turnkey service, we will deliver the needed machines, do a technology transfer, provide expert and excellent support, and help you with the know-how needed to start even if you don't have any previous experience in this industry.

Start Your Own Solar Panel Production Line Today!

>