Lesotho Solar Report

Currently, Lesotho’s total solar capacity is primarily supported by The Lesotho Electricity Generation Company (LEGCO), which has implemented a 70 MW solar project in Ha Ramarothole, Mafeteng. This project, initiated in October 2021, involves the installation of 2,616 solar panels.⁵

Lesotho is expected to achieve a solar energy generation capacity of 95 MW with the commercial operation of The Lesotho Solar PV Park, which has a capacity of 25 MW, scheduled by 2025.⁶

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• Hydropower: The cost of hydropower is estimated to be around 0.05- 0.10 $/kWh, depending on the project specifics and operational efficiency. The Lesotho Highlands Water Project is a key contributor to this capacity, providing both domestic and export electricity.
• Solar Power: The cost for solar energy ranges from 0.10- 0.20 $/kWh, depending on the scale and technology used.
• Wind Power: The costs of wind energy are in the range of 0.05- 0.15 $/kWh, depending on the site and technology used.

As of 2021, renewable energy accounted for approximately 99.8% of total electricity capacity in Lesotho. This high percentage reflects the country’s reliance on hydropower as its primary source of electricity generation, alongside potential contributions from wind and solar energy sources.²⁹

• Hydropower: 99%
• Solar Power: 1%
• Wind Power: less than 1%

¹⁰In 2020, 38% of the population surveyed in Lesotho reported being connected to an electricity supply that worked most or all of the time.

For 9% of the respondents, the electrical connection worked about half the time, occasionally, or never.

On the other hand, 53% of the individuals did not have a connection to the electric grid in the country.

There are approximately 1,537 solar home systems installed in Lesotho. This figure comes from a project initiated in 2013, aimed at introducing Lesotho Solar home systems in rural areas. However, many of these systems faced operational challenges, with at least half reported as either not functioning or providing inadequate service shortly after installation.⁷

At the moment, there are only few large-scale solar farms operational in Lesotho.

• The government launched the largest solar plant in Ha Ramarothole, Mafeteng, boasting a capacity of 70 MW in solar power generation.⁶
• Lesotho Solar PV Park in Mafeteng, a 25MW solar PV power project is expected to enter into commercial operation in 2025.¹¹
• U.S. company OnePower is conducting a feasibility study for a 20 MW solar energy project in the Mafeteng District.¹²

A 280 kW solar installation at Moshoeshoe I International Airport is used to serve the airport’s demand with any excess power exported to the grid.⁷

There is an off-grid 2.4 kW solar installation in Roma at the National University of Lesotho.

There are approximately 1,000,000 people living in households that may be ideally suited to solar home systems. There are also villages where grid-connection is probably uneconomic but which may be connectable through exploitation of renewable energy resources to establish mini-grids.

There is growing on-grid market demand for solar panels in Lesotho, driven by the government’s renewable energy targets and the need to increase electricity access, particularly in rural areas. Lesotho aims to increase renewable energy use to 200 MW by 2025, which will likely involve significant investments in solar power.⁵¹³

However, the market is still in its early stages and faces some regulatory challenges. Also, high costs of electricity connections and tariff rates make it difficult for many rural households to afford grid electricity, despite the increase in connections.

One of the ways to gap these challenges is the usage of solar kiosks, a much-needed solution for rural communities in Lesotho, where grid electricity is often unavailable or unaffordable. Kiosks have solar panels that charge and store power in large batteries. There are six solar charging booths in Thaba-Tseka district owned by rural entrepreneurs. For example, customers can charge their cell phones for $0.27 and use power banks for double the price at the kiosks.

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• Solar Photovoltaic Installer: the average monthly salary is approximately $400.
• Solar Energy Systems Engineer: the average monthly salary is approximately $635.
• General Solar Engineer: the average monthly salary is also around $635.

The current population of the Lesotho is 2,357,728.¹⁶

Estimate for Factory Rent¹⁷

Land prices for sale start as low as 2 $/m2 in some areas, indicating that rental costs may also be relatively low (specific rent costs are not available).

Industrial Electricity Rates¹⁸

The average wholesale electricity price in Lesotho for industrial and commercial consumers is in the range of 0.0135 to 0.0173 $/kWh, with some variation based on voltage level and consumer category.

Water Costs¹⁹

The cost for industrial water usage is approximately 0.30 $/m3. However, prices may fluctuate based on factors such as the volume of water used and the specific industrial sector.

Salaries and Wages¹⁴¹⁵

Worker of solar industry in Sweden earn between $400 and $635 monthly, depending on the position.

Rent for Office Space²⁰

In Maseru, the capital of Lesotho, commercial space is available for rent at prices starting from around 5 $/m2 per month for various properties, although the size and specific features of the property can influence the price significantly.

Insurance²¹

The average spending per capita in the property insurance market in Lesotho is estimated to be $59.74 for the year 2024.

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Electricity Generation

• Lesotho’s energy infrastructure is primarily based on hydropower, with ongoing efforts to enhance access and diversify energy sources, especially wind and solar.
• The ‘Muela Hydropower Station is the sole provider of grid electricity, generating approximately 33,000 tons of oil equivalent (ktoe) in 2015.
• The country has invested in projects aimed at enhancing its electricity supply, including the Renewable Lesotho initiative, which promotes the development of clean energy sources and aims to achieve energy security and independence.

Transmission and Distribution

• The Lesotho Electricity Company (LEC) manages the electricity transmission and distribution network, which is currently undergoing upgrades to improve reliability and expand access.
• Only 37.7% of the rural population has access to electricity, compared to 80.6% in urban areas.

Energy Access

• Approximately 50.4% of the overall population has access to electricity, indicating significant gaps, especially in rural regions where reliance on biomass is prevalent.
• Only 41.1% of the population has access to clean cooking solutions, highlighting the dependency on traditional fuels like wood and coal.

Energy Imports and Exports

• Lesotho imports about 30% of its electricity from South Africa’s Eskom and 11% from Mozambique’s Electricidade de Moçambique (EDM) to meet demand, particularly during peak times.
• The country has the potential to export excess hydropower, although this is contingent on domestic generation capacity and hydrological conditions.

The Lesotho government has several regulations and initiatives in place to promote the adoption of solar energy technologies:⁷²⁵

Renewable Energy Policy

• The draft Renewable Energy Policy for Lesotho enlists various solar PV applications that are being encouraged, including solar home systems, PV for clinics, water pumping, and telecommunications.
• The policy aims to establish a regulatory framework for allowing private sector participation as Independent Power Producers (IPPs) in mini or micro hydro, wind, solar and biomass power generation.

Technical Standards and Quality Assurance

• The Department of Standards and Quality Assurance (DSQA) is working to establish a national standardization and quality assurance framework for renewable energy equipment imported into Lesotho.
• The government plans to start using IEC and ISO standards to assure the technical performance of renewable energy equipment.
• Lesotho will not allow the import of second-hand renewable energy generation systems into the country.

Local Manufacturing

• Once the national standards and laboratory are in place, the government plans to initiate efforts to encourage local manufacture of renewable energy equipment, starting with low-tech components.

Solar PV Projects

• The 20MW NEO I Solar PV Plant is being developed in compliance with regulations in Lesotho, including minimum safety, health, environmental, risk, and service standards in the energy sector.
• The Project will contribute around 13% to Lesotho’s maximum system demand and will be substituting 20 MW of costly imported power from Moçambique (EDM), thus decreasing power retail prices in Lesotho.

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Renewable Energy-Based Rural Electrification Project (LREBRE)

This project aimed to increase the adoption of renewable energy technologies, including solar PV systems, particularly in rural areas. It included a performance grant and a credit guarantee scheme to facilitate the dissemination of solar technologies to rural customers. By the end of the project, it was expected that two-thirds of the available funds would be dispersed to deliver PV systems to rural areas, and major PV dealers would offer financing options for customers.

Scaling Renewable Energy Program (SREP)

The SREP is designed to support the development of utility-scale solar PV and off-grid renewable energy solutions. It aims to establish a self-sustaining market for on-grid and off-grid investments by facilitating private sector participation and providing technical assistance. The program aligns with the government’s electrification objectives and aims to increase private sector investment in renewable energy.

Feed-in Tariff Policy

Lesotho has introduced an energy feed-in tariff to incentivize private sector investment in renewable energy projects. This policy is designed to encourage the development of solar energy by providing a guaranteed payment for electricity fed into the grid from renewable sources.

Local Manufacturing Encouragement

The government is also focusing on establishing standards for renewable energy technologies and promoting local manufacturing of solar equipment once the necessary quality assurance frameworks are in place. This aims to reduce dependency on imported solar technologies and create local jobs.

International Support and Partnerships

The government collaborates with international organizations and development partners to enhance its renewable energy initiatives. These partnerships provide financial aid, technical assistance, and capacity-building programs to support the implementation of solar energy projects.

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Mafeteng 20 MW PV Plant

This project is planned to be the first utility-scale solar PV plant in Lesotho, with a capacity of 20 MW. It aims to utilize crystalline silicon PV technology and will include a backup generation system. The project is expected to contribute significantly to the national grid and enhance local energy generation capacity.

Ha Makebe Solar Mini-Grid

A pilot project in Ha Makebe village, completed in 2021, marked the establishment of Lesotho’s first private solar mini-grid. This 50 kWp solar mini-grid was funded by the Renewable Energy Performance Platform (REPP) and connected over 200 households and businesses to electricity for the first time.

Following the pilot’s success, a second phase is underway to develop an additional 10 mini-grids, which will provide energy access to approximately 30,000 people across rural areas. These mini-grids are solar PV hybrids with battery storage and limited LPG backup generation, ensuring year-round electricity supply.

Additional Mini-Grids

Following the Ha Makebe pilot, the plan includes constructing 10 more mini-grids in rural service territories. These mini-grids are expected to provide consistent electricity access to around 8,000 households, small enterprises, schools, and health clinics, contributing to socio-economic development in these areas.

Mahlaseli Energy

• Website: https://mahlaselienergy.co.ls/
• Details: Mahlaseli Energy, based in Hlotse, delivers sustainable solar energy and water solutions. Their key projects include solar off-grid systems, solar geysers, and solar pay-as-you-go models, impacting over 15,000 people with clean water and reducing carbon emissions significantly​. They aim to electrify 50% of rural Lesotho, enhancing community access to reliable energy and water while promoting economic development​.

MOSCET

• Website: https://www.moscet.co.ls/
• Details: Established in 2010, Mos-Sun Clean Energy Technologies (MOSCET), provides innovative renewable energy solutions. Their projects include installing solar PV systems, solar geysers, mini-grids, and solar street lighting to bridge the energy gap in underserved regions. They also focus on reducing electricity bills through power backup systems and advancing as an independent power producer.

OnePower Lesotho

• Website: https://1pwrafrica.com/
• Details: OnePower focuses on providing reliable and affordable electricity to off-grid communities through solar-hybrid mini-grids. Their projects include deploying solar PV systems, battery storage, and backup generators to ensure continuous power. They employ automated operations and mobile PAYG payments to enhance accessibility and affordability. Since its inception, OnePower has been instrumental in improving energy access for homes, schools, health centers, and businesses in rural Lesotho, fostering community growth and development.

Frazer Solar

• Website: https://www.frazersolar.com/lesotho
• Details: Frazer Solar focuses on reducing electricity imports and enhancing energy efficiency through solar water heaters, solar PV, and LED lights. They have developed a project to provide solar lanterns with phone chargers to 350,000 non-electrified households, eliminating the use of candles and paraffin. Additionally, the project includes financing solutions with European and African development banks, aiming to create a cash flow-positive impact by offsetting costs with savings from reduced electricity imports.