Malawi Solar Report

Gain comprehensive insights into the statistics and metrics surrounding the solar production industry in Malawi

  1. Climate Top (n.d.). Sunshine & Daylight Hours in Blantyre, Malawi. Retrieved 5th January, 2025 from https://www.climate.top/malawi/sunlight/
  2. Energy Catalyst (2020, June). Country Guide: Malawi. Retrieved 5th January, 2025 from https://energycatalyst.ukri.org/wp-content/uploads/2023/06/Country-Guide-Malawi.pdf
  3. Global Petrol Prices (2024, March). Malawi electricity prices. Retrieved 5th January, 2025 from https://www.globalpetrolprices.com/Malawi/electricity_prices/
  4. Millennium Challenge Corporation USA (2021, March). Improving Power Quality and Reliability in Malawi. Retrieved 5th January, 2025 from https://www.mcc.gov/resources/doc/evalbrief-032521-malawi-idp/
  5. IRENA (2024). Renewable Energy Statistics 2024. Retrieved 5th January, 2025 from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2024/Jul/IRENA_Renewable_Energy_Statistics_2024.pdf
  6. EPPSA (2022, December). State of Knowledge: Energy Access in Malawi. Retrieved 5th January, 2025 from https://eppsa.cpc.unc.edu/wp-content/uploads/2023/04/23-7097-CPC-EPPSA_Report_Malawi_Final-2.pdf
  7. Sustainable Energy For All (2022, October). Malawi Integrated Energy Plan. Retrieved 5th January, 2025 from https://www.seforall.org/system/files/2022-10/Malawi_IEP-Electrification_Report.pdf
  8. USAID (2024, April). The Solar Home System Kick-Starter Program for Malawi. Retrieved 5th January, 2025 from https://sun-connect.org/wpcont/uploads/PA021SBM.pdf
  9. GEM Wiki (n.d). Solar farms in Malawi. Retrieved 5th January, 2025 from https://www.gem.wiki/Category:Solar_farms_in_Malawi
  10. Africa Clean Energy (2021, March). Stand Alone Solar (SAS) Market Update – Malawi. Retrieved 8th January, 2025 from https://www.ace-taf.org/wp-content/uploads/2021/03/Stand-Alone-Solar-SAS-Market-Update-Malawi.pdf
  11. World Bank Group (2024, June).  Affordable Solar Power is Increasing Electricity Access for Malawi’s Households. Retrieved 8th January, 2025 from https://www.worldbank.org/en/news/feature/2024/06/20/affordable-solar-power-is-increasing-electricity-access-for-malawi-s-households
  12. Worldometer (2025, January). Malawi Population (LIVE). Retrieved 8th January, 2025 from https://www.worldometers.info/world-population/malawi-population/
  13. Glassdoor (2024, November). Engineer Salaries. Retrieved 8th January, 2025 from https://www.glassdoor.com/Salaries/malawi-engineer-salary-SRCH_IL.0,6_IN157_KO7,15.htm
  14. Paylab (n.d). Project Manager Management. Retrieved 8th January, 2025 from https://www.paylab.com/mw/salaryinfo/management/project-manager
  15. Paylab (n.d). General Labourer. Retrieved 8th January, 2025 from https://www.paylab.com/mw/salaryinfo/general-labour/general-labourer
  16. Business Malawi (2023, March). Northern Region Water Board Tariffs. Retrieved 8th January, 2025 from https://www.businessmalawi.com/northern-region-water-board-tariffs/
  17. Ministry of Energy (2023). MALAWI ENERGY STATISTICS OVERVIEW. Retrieved 8th January, 2025 from https://www.energy.gov.mw/statistics/
  18. The Global Economy (2022). Malawi: Electricity consumption. Retrieved 8th January, 2025 from https://www.theglobaleconomy.com/malawi/electricity_consumption/
  19. EPPSA (2022, December). State of Knowledge: Energy Access in Malawi. Retrieved 5th January, 2025 from https://eppsa.cpc.unc.edu/wp-content/uploads/2023/04/23-7097-CPC-EPPSA_Report_Malawi_Final-2.pdf
  20. World Bank Group (2023, July). New Malawi Economic Update Calls for Urgent Action to Address Macroeconomic Imbalances and Increase Energy Access. Retrieved 8th January, 2025 from https://www.worldbank.org/en/news/press-release/2023/07/19/new-afe-malawi-economic-update-calls-for-urgent-action-to-address-macroeconomic-imbalances-and-increase-energy-access#:~:text=This%20MEM’s%20special%20section%20on,able%20to%20support%20productive%20firms.
  21. LEX Africa (2024). Renewable Energy Laws and Regulations Malawi 2024. Retrieved 17th January, 2025 from https://lexafrica.com/2024/05/renewable-enrgy-laws-malawi/
  22. Conrema (2023, September). Tax incentives boost solar power usage. Retrieved 17th January, 2025 from https://conrema.org/2023/09/19/tax-incentives-boost-solar-power-usage/
  23. World Bank Group (2024, June). Affordable Solar Power is Increasing Electricity Access for Malawi’s Households. Retrieved 17th January, 2025 from https://www.worldbank.org/en/news/feature/2024/06/20/affordable-solar-power-is-increasing-electricity-access-for-malawi-s-households
  24. IEA (2018, March). Malawi Rural Electrification Programme (MAREP). Retrieved 17th January, 2025 from https://www.iea.org/policies/5875-malawi-rural-electrification-programme-marep
  25. The Borgen Project (2020, March 25). 3 Solar Energy Developments in Malawi. Retrieved 17th January, 2025 from https://borgenproject.org/solar-energy-developments-in-malawi/
  26. Medium (2022, January). Building Malawi’s First Utility-Scale Solar-Plus-Storage Power Project. Retrieved 17th January, 2025 from https://powerafrica.medium.com/building-malawis-first-utility-scale-solar-plus-storage-power-project-6aadd0904727#:~:text=The%2020%20megawatt%20(MW)%20Golomoti,strengthen%20the%20national%20power%20grid.&text=PROJECT%20UPDATE%3A%20May%209%2C%202022.
  27. JCM Power (n.d). SALIMA. Retrieved 17th January, 2025 from https://www.jcmpower.ca/projects/salima
  28. Wikipedia (2023, March). Nkhotakota Solar Power Station. Retrieved 17th January, 2025 from https://en.wikipedia.org/wiki/Nkhotakota_Solar_Power_Station
  29. Wikipedia (2024, August). Bwengu Solar Power Station. Retrieved 17th January, 2025 from https://en.wikipedia.org/wiki/Bwengu_Solar_Power_Station
  30. Wikipedia (2024, September). Dwangwa Solar Power Station. Retrieved 17th January, 2025 from https://en.wikipedia.org/wiki/Dwangwa_Solar_Power_Station
  31. Vitalite. Homepage. Retrieved 17th January, 2025 from https://vitalitemw.com/about-us
  32. Nordic Development Fund. SolarWorks! – CONNECT MALAWI. Retrieved 17th January, 2025 from https://eepafrica.org/Portfolio/solarworks/
  33. AECF (n.d). Zuwa Energy. Retrieved 17th January, 2025 from https://www.aecfafrica.org/stories/futurepump/
  34. SEED (2015). RECAPO CBO – Distributing sustainable and affordable energy in rural Malawi. Retrieved 17th January, 2025 from https://seed.uno/enterprise-profiles/recapo-cbo

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

On average, Malawi receives about 2640 hours of sunshine per year. This translates to roughly 7 hours and 13 minutes of sunlight per day. 1

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kWh per kWp installed

In Malawi, the average annual energy output for photovoltaic (PV) systems is approximately 1350 kWh/kWp to over 1700 kWh/kWp. 2

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Average cost per kWh from utility company

As of March 2024, the average cost of electricity in Malawi is approximately $0.065USD per kWh for residential consumers and $0.103USD per kWh for businesses. This price includes the cost of power, distribution, transmission, and all taxes and fees. 3

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Reliability of electrical power supply grid

The reliability of Malawi’s electrical power supply grid has been a significant challenge. Despite efforts to modernize the grid and improve infrastructure, the country still faces frequent power outages and insufficient generation capacity. The Electricity Supply Corporation of Malawi (ESCOM) struggles to meet the growing demand, leading to persistent blackouts that hinder economic development. 4

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Detailed Information

  • All figures have been converted into USD

    • Total solar panel production capacity (installed)

    According to IRENA, Malawi has installed around 108 MW of solar PV capacity as of 2023. 5

    Total solar panel production capacity (projected)

    Specific data on the total solar panel production capacity projected in Malawi is not publicly available. However, the government aims to increase the share of renewable energy in the national grid including significant investment in solar power projects, with a target to reach 80% electricity access by 2035. 19

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

    • Hydropower: $0.05USD per kWh
    • Solar: $0.08USD per kWh
    • Diesel: $0.30USD per kWh
    • Biomass: $0.10USD per kWh 7

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

    3

    • Hydropower: 80.77%
    • Solar: 13.08%
    • Fossil Fuels: 6.15%

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

    The average daily availability of electricity from the national grid in Malawi is approximately 12 hours per day. Many areas in Malawi experience significantly less than 24 hours of reliable grid electricity per day. Some might only have a few hours, while others might experience frequent outages.

    Number of residential solar panel installations

    There isn’t much information about the exact number of residential solar panel installations in Malawi. However, between July 2019 and September 2022, grantees sold 108,721 solar home systems in Malawi. 8

    Total number of solar farms (installed and projected)

    According to publicly available records, there are about 9 installed and projected solar farms in Malawi. 9

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

    Current Market Demand: A large portion of Malawi’s population, especially in rural areas, relies on off-grid solar solutions. Approximately 82.8% of the population lives in rural areas, making them a key market for stand-alone solar products. The off-grid solar market in Malawi has nearly quadrupled in size over the past two years, with many households adopting solar home systems. 10

    Projected Market Demand: The demand for off-grid solar panels is expected to continue growing as the government and various organizations work towards increasing electricity access. The MEAP aims to provide solar home systems to 200,000 households by the end of its implementation period. 11

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

    The on-grid solar market in Malawi is also experiencing growth, though it’s not as pronounced as the off-grid market. The on-grid solar market is expected to grow from 2024 to 2030, with advancements in technology and increased investment in renewable energy.

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

    Solar Engineer: The estimated total pay for an Engineer is $1091.84 USD per month in the Malawi area, with an average salary of $980 USD per month. 13

    Project Manager: The average salary for a Project Manager in Malawi typically ranges from $420 USD to $1,120 USD per month, depending on factors such as experience, level of education, and the specific employer. 14

    General Labor: The average salary for a General Laborer in Malawi typically ranges from $252 USD to $452 USD per month. 15

    Population of the country

    As of January 2025, the population of Malawi is approximately 21,943,521 12

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

    Factory rent: The average rent for factory space in Malawi can vary significantly based on location, size, and facilities.

    Utilities (electricity, water, etc)

    Electricity: As of March 2024, the average cost of electricity in Malawi is approximately $0.065USD per kWh for residential consumers and $0.10USD per kWh for businesses. This price includes the cost of power, distribution, transmission, and all taxes and fees. 3

    Water: The cost of water per cubic meter for households with water facilities in homes in Malawi is approximately $0.52 USD. 16

    Equipment maintenance

    The cost of maintaining solar equipment in Malawi can vary depending on the type and scale of the system, as well as the specific maintenance requirements. Generally, maintenance costs include regular cleaning, inspection, and occasional repairs or replacements of components like batteries and inverters.

    Administrative costs

    Salaries & wages: The average monthly salary for a Project Manager in Malawi typically ranges from $420 USD to $1,120 USD. The average salary for an engineer in Malawi is approximately $980 USD 1314

    A summary of the energy infrastructure

    Total Installed Capacity

    As of 2023, Malawi’s total installed electricity capacity from all sources is approximately 398.39 megawatts (MW). 17

    Electricity Generation

    Hydropower accounts for the majority of electricity generation in Malawi, but the country is working to diversify its energy mix by promoting renewable energy sources like solar and wind. This helps reduce reliance on hydropower and improve energy security, especially during droughts and water shortages. 17

    Electricity Consumption

    The total consumption of 1.10 billion kWh of electric energy per year. 18

    Grid Infrastructure

    Hydropower constitutes the primary source of electricity generation in Malawi. The nation’s electrical grid possesses transmission capacity surpassing its installed generation capacity by a factor of 170%. The Electricity Supply Commission of Malawi (ESCOM) serves as the sole provider of electricity, managing a comprehensive transmission network. A 132kV backbone, traversing the entire country, interconnects all major urban centers. This primary network is further supplemented by 66kV sub-transmission lines. 19

    Energy Access

    In 2023, Malawi’s electricity access rate was estimated at 19%, with 45% access in cities and 5% in rural areas. This is an increase from 11% in 2018, but the percentage of access linked to the national grid has remained around 12%. 20

    Some of the government regulations surrounding solar panel production

    21

    National Energy Policy (NEP) 2018: This sets out the overall strategic direction for energy access, focusing on sustainability, affordability, and reliability. It aims to create a conducive environment for private sector investment and renewable energy projects, including solar.

    Malawi Renewable Energy Strategy (MRES) 2017: This strategy prioritizes universal access to renewable electricity and promotes off-grid solar solutions and clean energy mini-grids. It outlines specific actions to enhance the adoption of renewable energy technologies.

    Energy Regulation Act: The Malawi Energy Regulatory Authority (MERA) operates under this act to license electricity generation, transmission, and distribution. MERA ensures compliance with regulations and mediates disputes in the energy sector.

    Electricity Act: Provides guidelines for licensing renewable energy projects. It supports Independent Power Producers (IPP) and other private entities in the energy generation sector.

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

    Tax Incentives: The Malawi government has exempted import duty and excise tax on solar products, especially small-scale solar home systems (SHS), to encourage the use of solar power. This effort targets reducing reliance on hydroelectric power and increasing electricity access in rural areas. 22

    Malawi Electricity Access Project (MEAP): Supported by the World Bank, MEAP aims to boost electricity access across the country by promoting off-grid solar energy solutions. This includes the implementation of the Ngwee Ngwee Ngwee Funding Mechanism (NNNF) which provides working capital and grants to nurture private sector-led off-grid solar projects. 23

    Malawi Rural Electrification Program (MAREP): This program concentrates on extending electricity access in rural areas. While traditionally focused on grid connections, there’s a growing emphasis on renewable energy solutions including solar power. 24

    USAID’s Collaboration: USAID funds solar home systems initiatives in collaboration with various solar companies like SolarWorks, Vitalite, and Zuwa Energy, aiming to provide electricity to over 100,000 households. 25

    Notable solar projects in the country (installed and projected)

    Installed Projects

    Salima Solar Project

    • Location: Located 75 km east of Lilongwe, Malawi.
    • Capacity: 60 MW
    • Details: This project, developed by JCM, constitutes the nation’s inaugural commercial-scale solar Independent Power Producer (IPP). Commencing commercial operations in October 2021, it represents a significant milestone in the country’s renewable energy sector. 27

    Golomoti Solar PV

    • Location: Located in Dedza, Malawi.
    • Capacity: 20 MW
    • Details: Golomoti is the first utility-scale plant in the region to include a battery energy storage system (BESS). It was co-developed by Power Africa partners, JCM Power and the Private Infrastructure Development Group’s InfraCo Africa, and with financial support from Innovate UK. 26

    Nkhotakota Solar Power Plant

    • Location: Nkhotakota District, Central Region, Malawi.
    • Capacity: 21 MW
    • Details: The Nkhotakota Solar Power Station commenced commercial operations in March 2023. The solar farm is a joint venture between Phanes Group and Serengeti Energy Limited, and it is projected to generate 7 Gigawatt-hours of electricity annually, sufficient to power approximately 200,000 Malawian households. 28

    Projected Projects

    Bwengu solar farm

    • Location: Bwengu, Mzimba District, Northern Region, Malawi.
    • Capacity: 50 MW
    • Details: The construction of the power station, spearheaded by a consortium headed by Quantel Renewable Energy, commenced in February 2022. The electricity generated by this facility will be transmitted to an ESCOM substation for subsequent integration into the national grid. 29

    Dwangwa solar farm

    • Location: Dwanga lake, Nkhotakota, Malawi.
    • Capacity: 55 MW
    • Details: The power station currently under development, owned and developed by Voltalia, a prominent French multinational Independent Power Producer (IPP), is equipped with a 10 MWh battery energy storage system, augmenting its generation capacity to 65 MW. The electricity generated by this facility will be sold to Electricity Supply Corporation of Malawi (ESCOM), the national electricity parastatal utility company, pursuant to a 20-year power purchase agreement. 30

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

    SolarWorks: They enhance energy access for rural and peri-urban households with solar home systems (SHS). Using a Pay-As-You-Go (PAYG) system, they offer affordable solar solutions, mitigating 7,300 tons of COâ‚‚ emissions annually, and helping households save on energy costs. 32

    Vitalite: The company is dedicated to providing affordable solar solutions to enhance energy access in underserved areas. They offer innovative products like solar home systems and solar appliances, using mobile technology for flexible payment plans. By empowering low-income communities with sustainable energy, they aim to boost economic growth and improve the quality of life in Malawi. 31

    Zuwa Energy: They aim to address the energy needs of off-grid, low-income households in Malawi by offering accessible solar power solutions. They are a leading solar asset consumer financing company in Malawi. Their mission is to empower people and businesses by providing affordable access to solar power financing1. Established in 2016, they offer high-quality solar household systems and utilize mobile technology for innovative payment plans. 33

    Recapo Solar Systems: The company is a leading supplier of solar electricity products in Malawi, focusing on rural and semi-urban communities. Established in 2014, they offer innovative solar home systems, smallholder farmer solutions, and PAYG payment plans to enhance energy access. Notably, they have nationwide partnerships, making solar energy affordable and accessible. 34

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