Lesotho Solar Report

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

  1. Climate.top (n.d.). Cli Sunshine & Daylight Hours in Maseru, Lesotho. Retrieved July 23, 2024, from https://www.climate.top/lesotho/sunlight/
  2. IRENA – International Renewable Energy Agency (2023, August 08). Energy profile Lesotho. Retrieved July 23, 2024, from https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Africa/Lesotho_Africa_RE_SP.pdf
  3. Global Petrol Prices (n.d.). Lesotho electricity prices. Retrieved July 23, 2024, from https://www.globalpetrolprices.com/Lesotho/electricity_prices/
  4. Afrobarometer (2024, June 7). AD811: Basotho say government is doing a poor job of providing a reliable electricity supply. Retrieved July 23, 2024, from https://www.afrobarometer.org/publication/ad811-basotho-say-government-is-doing-a-poor-job-of-providing-a-reliable-electricity-supply/
  5. Get.transform (2024, July 01). Lesotho Country Window: Energy System Transformation Outlook (ESTO). Retrieved July 23, 2024, from https://www.get-transform.eu/wp-content/uploads/2024/07/GET.transform-Lesotho-ESTO-July-2024.pdf
  6. International Trade Organization (2024, February 02). Lesotho – Country Commercial Guide. Retrieved July 23, 2024, from https://www.trade.gov/country-commercial-guides/lesotho-renewable-energy
  7. MRC Group (2018, August). Electricity Supply Cost of Service Study – LEWA Lesotho. Retrieved July 23, 2024, from https://nul-erc.s3.amazonaws.com/public/documents/reports/cost-of-service-study-1543817960.pdf
  8. Journal of energy in Southern Africa (2021, February). Lesotho electricity demand profile from 2010 to 2030. Retrieved July 23, 2024, from https://scielo.org.za/scielo.php?pid=S1021-447X2021000100004&script=sci_arttext
  9. Statista (2023, June 20). Share of renewable energy in electricity capacity in Lesotho from 2012 to 2021. Retrieved July 23, 2024, from
  10. Statista (2024, January 31). Share of individuals with a reliable supply of electricity in Lesotho in 2020. Retrieved July 23, 2024, from https://www.statista.com/statistics/1316146/share-of-individuals-with-a-reliable-supply-of-electricity-in-lesotho/
  11. Power Technology (2024, May 31). Power plant profile: Lesotho Solar PV Park, Lesotho. Retrieved July 23, 2024, from https://www.power-technology.com/data-insights/power-plant-profile-lesotho-solar-pv-park-lesotho/ 
  12. The Lesotho Electricity Generation Company (2022, November 22). 70MW Solar Power Project. Retrieved July 23, 2024, from https://www.legco.co.ls/
  13. Eco- Business (2023, June 6). The solar kiosks powering Lesotho’s rural communities. Retrieved July 23, 2024, from https://www.eco-business.com/news/the-solar-kiosks-powering-lesothos-rural-communities/
  14. World salaries (n.d.). Average Solar Energy Systems Engineer Salary in Lesotho for 2024. Retrieved July 23, 2024, from https://worldsalaries.com/average-solar-energy-systems-engineer-salary-in-lesotho/
  15. World salaries (n.d.). Average Solar Photovoltaic Installer Salary in Lesotho for 2024. Retrieved July 23, 2024, from https://worldsalaries.com/average-solar-photovoltaic-installer-salary-in-lesotho/
  16. Worldometer (n.d.). Lesotho Population. Retrieved July 23, 2024, from https://www.worldometers.info/world-population/lesotho-population/
  17. African land (n.d.). Discover your next development opportunity: land for sale in Maseru, Lesotho. Retrieved July 23, 2024, from https://african.land/blog/article/discover-your-next-development-opportunity-land-for-sale-in-maseru-lesotho-b678
  18. Lesotho Electricity and Water Authority (LEWA) (n.d.). Approved electricity tariffs & charges. Retrieved July 23, 2024, from https://www.lewa.org.ls/approved-electricity-tariffs-charges/
  19. Lesotho Electricity and Water Authority (LEWA) (n.d.). Approved Water Tariffs & Sewerage Charges. Retrieved July 23, 2024, from https://www.lewa.org.ls/approved-water-tariffs-sewerage-charges/
  20. Eris property group (n.d.). Retail Properties To Let in Maseru, Lesotho. Retrieved July 23, 2024, from https://www.eris.co.za/results/retail/to-let/maseru/
  21. Statista (2024, March). Property Insurance – Lesotho. Retrieved July 23, 2024, from https://www.statista.com/outlook/fmo/insurances/non-life-insurances/property-insurance/lesotho
  22. UN Capital Development Fund (UNCDF) (2020). The Making Access Possible Programme. Retrieved July 23, 2024, from https://www.undp.org/sites/g/files/zskgke326/files/publications/UNDP-UNCDF-Lesotho-Energy-and-the-Poor.pdf
  23. Africa Energy Portal (n.d.). Lesotho – Profile. Retrieved July 23, 2024, from https://africa-energy-portal.org/aep/country/lesotho
  24. Delegation of the European Union to the Kingdom of Lesotho (2024, February 14). Renewable Lesotho. Retrieved July 23, 2024, from https://www.eeas.europa.eu/delegations/lesotho/renewable-lesotho_en?s=103
  25. Map Africa (n.d.). Lesotho – Mafeteng Solar PV Project. Retrieved July 23, 2024, from https://mapafrica.afdb.org/en/projects/46002-G-LS-FZ0-PRE-001
  26. Lesotho Renewable Energy-Based Rural Electrification Project (LREBRE) (2015). DRAFT Terminal Evaluation Report. Retrieved July 23, 2024, from https://www.gefieo.org/sites/default/files/documents/projects/tes/1245-terminal-evaluation.pdf
  27. Document of The World Bank (2020, June 25). Lesotho scaling up renewable energy program investment plan. Retrieved July 23, 2024, from https://documents1.worldbank.org/curated/en/973931593508357535/text/Lesotho-Scaling-Renewable-Energy-Program-SREP-Investment-Plan-IP-Project.txt
  28. Department of Energy (2024, January 19). Support to the energy sector reform in Lesotho: skills audit and developing capacity building plan for doe. Retrieved July 23, 2024, from https://www.doe.gov.ls/post/view/59
  29. Retrieved July 23, 2024, from https://repp.energy/project/ha-makebe-lesotho/
  30. Retrieved July 23, 2024, from https://www.miga.org/sites/default/files/2022-07/Lesotho%20PV%20Plant%20Final%20ESIA%20Report%20updated.pdf

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

Lesotho has an average of 3200-3300 hours of sunshine per year, making it one of the sunniest spots in the southern half of Africa. Maseru, the capital of Lesotho, has an average of 3202 hours of sunlight per year (of a possible 4383) with an average of 8:46 of sunlight per day. This equates to 73.1% of daylight hours being sunny.1

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kWh per kWp installed

The national average amount of electricity generated per kilowatt-peak (kWp) of installed solar capacity in Lesotho is approximately 1.4 – 2.0 MWh/kWp.2

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Average cost per kWh from utility company

As of December 2023:3

  • Household electricity price was approximately 0.102 $/kWh.
  • Business electricity price was approximately 0.021 $/kWh.

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Reliability of electrical power supply grid

The overall reliability of the electrical power supply grid in Lesotho is relatively low. Despite progress in expanding access to electricity, Lesotho has one of the lowest electrification rates on the continent, mainly due to limited rural penetration, especially in the country’s mountainous areas.4

A recent survey indicated that about 40% of all Lesotho enjoy a reliable supply of electricity, with only 22% of rural residents experiencing similar reliability.

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Detailed Information

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

    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

    Total solar panel production capacity (projected)

    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

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

    78

    • 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.

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

    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%

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

    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.

    Number of residential solar panel installations

    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

    Total number of solar farms (installed and projected)

    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

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

    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.

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

    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.

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

    1415

    • 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.

    Population of the country

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

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

    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.

    A summary of the energy infrastructure

    222324

    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.

    Some of the government regulations surrounding solar panel production

    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.

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

    262728

    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.

    Notable solar projects in the country (installed and projected)

    2930

    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.

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

    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.

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