Namibia Solar Report

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

  1. Climate top. (2024). Sunshine & Daylight Hours in Windhoek, Namibia. Retrieved September 17, 2024, from https://www.climate.top/namibia/windhoek/sunlight/
  2. Profile Solar. (2024). Solar PV potential in Namibia by location. Retrieved September 17, 2024, from https://profilesolar.com/countries/NA/
  3. The Namibian. (2024). NamPower gets 8% electricity price increase – The Namibian. Retrieved September 17, 2024, from https://www.namibian.com.na/nampower-gets-8-electricity-price-increase/#:~:text=The%20Electricity%20Control%20Board%20(ECB,N%242%2C1444%20per%20kWh
  4. Statista. (2024). Share of individuals with a reliable supply of electricity in Namibia. Retrieved September 17, 2024, from https://www.statista.com/statistics/1315914/share-of-individuals-with-a-reliable-supply-of-electricity-in-namibia/
  5. Sinalda. (2024). Voltage in Namibia. Retrieved September 17, 2024, from https://www.sinalda.com/world-voltages/africa/voltage-namibia/
  6. International Renewable Energy Agency. (2024, July). Renewable energy statistics 2024. Retrieved September 17-18, 2024, from https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2024/Jul/IRENA_Renewable_Energy_Statistics_2024.pdf
  7. GIZ. (2022). Sector brief Namibia: Renewable energies. Retrieved September 18, 2024, from https://www.giz.de/de/downloads/giz2022-en-sector-brief-namibia-renewable-energy.pdf
  8. Climatescope. (2023). Namibia. Retrieved September 18, 2024, from https://www.global-climatescope.org/markets/na/
  9. All Africa. (2023). Namibia: Rehoboth Up in Arms Over Power Outages. Retrieved September 18, 2024, from https://allafrica.com/stories/202409090635.html
  10. Worldometer. (2024). Namibia electricity. Retrieved September 18, 2024, from https://www.worldometers.info/electricity/namibia-electricity/
  11. Observer 24. (2024). NamPower clarifies recent power outages. Retrieved September 18, 2024, from https://www.observer24.com.na/nampower-clarifies-recent-power-outages/
  12. ITWeb. (2024). Power outages leave Namibians without telecom network. Retrieved September 18, 2024, from https://itweb.africa/content/lwrKx73YoQbqmg1o
  13. The Namibian. (2023). Namibia has best sunlight, but not many solar projects. Retrieved September 18, 2024, from https://www.namibian.com.na/namibia-has-best-sunlight-but-not-many-solar-projects/#:~:text=Published%20data%20from%20the%20Namibia,electricity%20over%20the%20past%20years
  14. SolarQuarter. (2023). Shining Bright: A Comprehensive Outlook On Namibia’s Solar Market In 2023. Retrieved September 18, 2024, from https://solarquarter.com/2023/07/01/shining-bright-a-comprehensive-outlook-on-namibias-solar-market-in-2023/#google_vignette
  15. Openinframap. (2024). All 101 power plants in Namibia. Retrieved September 18, 2024, from https://openinframap.org/stats/area/Namibia/plants
  16. Think Namibia. (2024). Pathway to Renewable Off-Grid Community Energy for Development (PROCEED) Project. Retrieved September 18, 2024, from https://www.thinknamibia.org.na/projects/proceed
  17. Energypedia. (2023). Improving Access to Finance for Off-Grid Renewable Energy in Namibia. Retrieved September 18, 2024, from https://energypedia.info/wiki/Improving_Access_to_Finance_for_Off-Grid_Renewable_Energy_in_Namibia
  18. Climate Partner. (2023). Energy from the sun, Our climate project in Outapi, Namibia. Retrieved September 18, 2024, from https://www.climatepartner.com/en/take-action/finance-climate-projects/climate-projects/solar-energy-in-namibia
  19. Energy Observer. (2023). All eyes on Namibia: A rare bird in the energy world. Retrieved September 18, 2024, from https://www.energy-observer.org/resources/the-energy-potential-of-namibia#:~:text=Even%20though%20as%20of%20today,and%20concentrated%20solar%20energy%20production
  20. WorldSalaries. (2024). Average Solar Photovoltaic Installer Salary in Namibia for 2024. Retrieved September 18, 2024, from https://worldsalaries.com/average-solar-photovoltaic-installer-salary-in-namibia/
  21. Worldometer. (2024). Population of Namibia. Retrieved September 18, 2024, from https://www.worldometers.info/world-population/namibia-population/
  22. Property24. (2024). Industrial property rents. Retrieved September 18, 2024, from https://www.property24.co.na/industrial-property-to-rent?Page=5
  23. My Property. (2024). Offices to rent in Windhoek. Retrieved September 18, 2024, from https://www.myproperty.com.na/office/to-rent/khomas/windhoek
  24. IEA. (2024). Namibia. Retrieved September 18, 2024, from https://www.iea.org/countries/namibia#:~:text=Most%20of%20Namibia’s%20electricity%20is,power%20into%20its%20domestic%20mix
  25. World Bank. (2023). Namibia: Transmission Expansion and Energy Storage. Retrieved September 18, 2024, from https://documents1.worldbank.org/curated/en/099183503022339451/P1773280b293570f0a9b705c86d66aacfe.docx#:~:text=Namibia%20remains%20heavily%20dependent%20on%20electricity%20imports.,by%20a%20further%20three%20percent
  26. Macrotrends. (2022). Namibia Electricity Access 1960-2024. Retrieved September 18, 2024, from https://www.macrotrends.net/global-metrics/countries/NAM/namibia/electricity-access-statistics#:~:text=Namibia%20electricity%20access%20for%202021,a%200.98%25%20decline%20from%202019
  27. OEC World. (2024). Electricity in Namibia | The Observatory of Economic Complexity. Retrieved September 18, 2024, from https://oec.world/en/profile/bilateral-product/electricity/reporter/nam#:~:text=In%202022%2C%20Namibia%20exported%20%246.15M%20in%20Electricity.,and%20Zimbabwe%20(%2424.9M)
  28. Gridworks. (2023). SPS launches first-of-its-kind solar power wheeling project in Namibia. Retrieved September 18, 2024, from https://gridworkspartners.com/2024/01/24/sps-launches-first-of-its-kind-solar-power-wheeling-project-in-namibia/
  29. Ohlthaver & List Group. (2023). 100MW Solar plant ahead for O&L Nexentury. Retrieved September 18, 2024, from https://www.ol.na/100mw-solar-plant-ahead-for-ol-nexentury/
  30. Reuters. (2024). Chinese firms to build Namibia’s largest solar power plant. Retrieved September 18, 2024, from https://www.reuters.com/business/energy/chinese-firms-build-namibias-largest-solar-power-plant-2024-09-09/

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

On average, there are 3,605 hours of sunlight per year (out of a possible 4,383), with an average of 9 hours and 52 minutes of sunlight per day.1

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Figure 01 Average daily Sunshine Hours in Windhoek, Namibia

kWh per kWp installed

  • The annual solar irradiation in the region ranges from 2,200 to 2,400 kWh/m²/yr.
  • Consequently, a typical utility-scale photovoltaic (PV) system can achieve a power output of 1964 kWh/kWp per year.2

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Average cost per kWh from utility company

The Electricity Control Board (ECB) has approved an 8% increase in NamPower’s bulk electricity tariff for the 2024/25 period. This results in an average tariff rise $0.1053 to $0.1137 per kWh.3

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Reliability of electrical power supply grid

  • Namibia’s electricity supply network faces frequent outages and disruptions due to equipment failures, limited generation capacity, and transmission constraints.
  • Rural areas, which are often distant from main transmission networks, experience more reliability issues.

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  • NamPower, the state utility, is working to improve reliability through investments in power generation, transmission infrastructure, and renewable energy projects, especially solar and wind power.
  • Despite these efforts, challenges like operational inefficiencies and high debt levels continue to affect the network’s overall stability.

 

Detailed Information

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

    As of 2023, Namibia’s total solar power installed capacity is 170 MW.6

    Total solar panel production capacity (projected)

    By 2030, Namibia is projected to have a total installed capacity of 510 MW from grid-connected renewable energy sources.7

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

    Major source of electricity generation is hydro in Namibia. Hence, following information is given;8

    Hydro

    The average electricity price in Namibia is 133.29 USD/MWh in 2022.

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

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

    The electricity infrastructure in Namibia faces frequent interruptions, but specific data on daily availability in hours is not clearly reported 11129

    • In Namibia, electricity availability varies depending on location, weather, and infrastructure issues.
    • Power outages, often due to weather conditions like rainfall and lightning or equipment failure, are common.
    • These outages can last from several hours to days, especially in areas where the infrastructure is under repair or affected by severe conditions.

    Number of residential solar panel installations

    Current installation 13

    As of the latest information, specific data on the exact number of homes with solar installations in Namibia isn’t readily available. But;

    • In Namibia, less than 10% of households use solar energy for cooking, heating, or lighting, according to data from the Namibia Statistics Agency (NSA).

    Projected installations 14

    As of the latest information, specific data on the exact number of homes with future solar installations in Namibia isn’t readily available. However,

    By 2025, it is anticipated that 80% of Namibia’s population will have access to renewable energy, largely driven by off-grid solar solutions.

    Total number of solar farms (installed and projected)

    15

    Current Solar Farms: 25

    Planned or Upcoming Solar Farms: 20+

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

    1617

    Current Off-Grid Solar Panel Demand in Namibia:

    • Over half of Namibia’s rural population lacks access to electricity, largely due to high costs and logistical challenges associated with extending the national grid.
    • Currently, only 20% of the national power grid’s energy mix comes from renewable sources, indicating a significant opportunity for growth in off-grid solar solutions.
    • The PROCEED Project is focused on developing off-grid hybrid energy systems, including photovoltaic (PV) mini-grids and battery systems, to enhance electricity access in underserved areas.
    • The Solar Revolving Fund (SRF), established in 1996, provides loans for solar technologies, and as of June 2023, 84 borrowers have benefited from the fund, highlighting its role in improving access to solar energy.
    • High initial costs for solar system implementation and maintenance, including battery replacements, remain significant barriers for many rural communities.
    • Access to finance is a major hurdle, though the SRF addresses this by providing loans; however, affordability continues to be an issue.
    • Solar water pumps and lighting systems have notably improved agricultural productivity and household activities, demonstrating the practical benefits of solar technology in rural settings.

    Future Off-Grid Solar Panel Demand in Namibia:

    • Future projects will continue to explore and implement cutting-edge technologies in mini-grids and hybrid systems, such as those supported by the PROCEED Project.
    • Increased financing options are expected through new SRF windows designed to better support low-income and productive users, complemented by advancements in digital infrastructure for easier access to funds.
    • The Ministry of Mines and Energy (MME) plans to maintain and expand the SRF, with ongoing support from additional donors aimed at increasing off-grid solar access.
    • Greater emphasis on awareness campaigns and education about solar technologies is anticipated to boost adoption rates and utilization across rural areas.
    • Recommendations for improvement include hiring additional staff to manage programs and exploring digital solutions for more efficient loan processing and management.
    • The potential exists for scaling up off-grid solar solutions significantly, with a continued commitment from political leaders to support and expand these initiatives.Top of Form

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

    141819

    Current On-Grid Demand for Solar Panels in Namibia

    • Namibia’s on-grid solar demand is moderate but growing, with significant reliance on solar energy projects integrated into the national grid. The existing infrastructure mainly supports urban and semi-urban areas, with ongoing efforts to extend coverage to rural regions.
    • As of recent data, Namibia’s solar PV capacity. This contributes around 25% to the country’s local energy generation, mainly utilized in regional and national grids, including major projects like the Outapi Solar Farm and Solar Andis Central.
    • The current on-grid solar capacity shows substantial progress but still reflects an early phase of development. The solar energy sector in Namibia is expanding but needs further investment and infrastructure to meet future demands.

    Future On-Grid Demand for Solar Panels in Namibia

    • Future on-grid solar demand in Namibia is anticipated to rise significantly. Energy needs are expected to grow to 930 MW by 2025 and 1,348 MW by 2030, with a strong focus on renewable energy sources.
    • Namibia aims to produce 70% of its energy from renewables by 2030. This includes substantial investments in solar energy to reduce dependence on imported electricity and enhance national energy security.
    • Ongoing projects like the solar farms and green hydrogen initiatives are central to increasing solar capacity.
    • Collaborative efforts with organizations and investment in new technologies are expected to drive future growth.
    • The expansion will require upgrading grid infrastructure, increasing energy storage solutions, and overcoming investment challenges. However, Namibia’s favorable solar conditions and commitment to renewable energy present significant opportunities for growth.

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

    A Solar Photovoltaic Installer in Namibia typically earns around 6,661 USD per year, with salaries ranging from 3,240 USD to 10,665 USD per year.20

    Population of the country

    The current population of Namibia is 3,043,560 21

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

    Estimate for Factory Rent

    Monthly Average Warehouse costs 22

    Here is the range of warehouse rents in Namibia;

    Lowest Rent:

    • Location: Oshakati Central
    • Rent: 954 USD per month

    Highest Rent:

    • Location: Prosperita (large property)
    • Rent: 21,200 USD per month

    So, warehouse rents in Namibia typically range from approximately 954 USD to 21,200 USD per month.

    Key Components of Administrative Costs

    Salaries and Wages: 20

    A Solar Photovoltaic Installer in Namibia typically earns around 6,661 USD per year, with salaries ranging from 3,240 USD to 10,665 USD per year.

    Commercial electricity Price 7

    For commercial electricity consumers, an average cost of 0.125 USD/kWh is observed.

    Office Rental Cost 23

    Here are the locations, areas, and rent ranges for office spaces in Namibia:

    Lowest Rent:

    • Location: Prosperita
    • Area: 1m² (shared space)
    • Rent: 159 USD per month

    Highest Rent:

    • Location: Southern Industrial Area
    • Area: 1,150 m²
    • Rent: 7,849 USD per month

    A summary of the energy infrastructure

    Electricity Generation 24

    • Namibia primarily generates its electricity through hydropower.
    • Additionally, it is among the top ten largest uranium resource-holders globally, contributing 8.2% of the world’s uranium production. The country has expressed interest in incorporating nuclear power into its energy mix.

     Transmission & Distribution 25

    • Namibia’s electricity transmission network, managed by NamPower, consists of high-voltage lines connecting power generation sources to regional substations and distribution networks.
    • The grid includes cross-border connections with neighboring countries to facilitate electricity imports and trading.

     Energy Access 26

    In 2021, Namibia’s electricity access rate was 55.23%, marking a 2.93% increase from 2020

    Energy Exports 27

    • In 2022, Namibia exported $6.15 million worth of electricity, with the primary destinations being Botswana ($5.45 million) and South Africa ($706,000).
    • During the same year, Namibia imported $235 million in electricity, primarily from Zambia ($117 million), South Africa ($93.3 million), and Zimbabwe ($24.9 million).

    Some of the government regulations surrounding solar panel production

    13

    Regulations for Personal Solar System Installation

    • For personal use, installing a solar system in Namibia requires minimal technical requirements and is not heavily regulated. Individuals setting up solar systems for home use are not subject to strict regulations.

    Licensing Requirements for Solar Systems

    • If the solar system’s capacity is less than 500KVA and is used solely for private purposes, it is exempt from needing a license. This regulation simplifies the process for homeowners wanting to use solar energy.

    Commercial Solar Systems and Licensing

    • If there is a commercial aspect, such as selling electricity to a third party, a license becomes necessary. This regulation ensures that commercial solar energy transactions are regulated and monitored.

    High-Capacity Solar Systems and Licensing

    • For solar systems with a capacity exceeding 500KVA, a license is mandatory, regardless of whether the system is used for private or commercial purposes. This regulation applies to larger installations which are less common in residential settings.

    Net Metering and Tariffs

    • Net metering allows homeowners to use the electricity they generate at any time, rather than when it is produced. This system helps in balancing energy consumption and production and involves paying a tariff to the municipality for the net metering service.

    Electrical geyser tax

    • The Namibian government plans to introduce an electrical geyser tax to encourage the use of solar geysers and reduce carbon emissions.

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

    In Namibia, several initiatives and subsidies support the adoption of solar energy, particularly for solar panel production and related projects. Here are some key points based on the provided information:7

    Investment Costs and Financing:

    • The Namibian government estimates the investment costs for renewable energy projects at approximately 2.15 billion USD
    • Financing for these projects is often sourced through competitive bidding by Independent Power Producers (IPPs). Larger firms and industrial enterprises typically have access to the capital required for such investments.
    • Local financing options are available, with the banking sector in Namibia being well-developed. Institutions like the Development Bank of Namibia, the Development Bank of Southern Africa, and the Industrial Development Corporation are involved in financing renewable energy projects, though terms are individually negotiated.

    Market Segments and Private Sector Opportunities:

    • Embedded Generation: There is a growing market for decentralized renewable energy systems for self-consumption, particularly in industry, commerce, and agriculture. The market segment for self-consumption is developing dynamically due to rising grid power costs, which make these systems economically viable with relatively short payback periods.
    • On-premise PV Systems: Common applications include PV systems with capacities ranging from 20 to 1,000 kWp, depending on the consumer sector (agriculture, tourism, commercial, etc.).

    Grid-bound Projects:

    • The Namibian government plans to award up to 510 MW of renewable energy projects through competitive tenders, including 80 MW of photovoltaics. This is part of a broader effort to expand renewable energy capacity, with projects managed by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH under the “Green People’s Energy for Africa” initiative.

    Mini-grids and Rural Electrification:

    • There is significant potential for mini-grids to improve electricity access in rural areas, where connecting to the national grid is often impractical. However, the sector lacks regulations and subsidies for stand-alone grids, and economic viability remains a challenge.

    Tourism Sector Initiatives:

    • A notable example of solar energy application in tourism is the Chobe Water Villas Lodge, which uses a 150 kWp PV system with battery storage to replace diesel generators. This project, financed by O&L Nexentury GmbH and other partners, demonstrates a successful application of solar energy in reducing operational costs and enhancing sustainability.

    Overall, while there are substantial opportunities for solar energy projects in Namibia, including for solar panel production, the sector faces challenges related to financing, regulatory frameworks, and economic viability, especially for mini-grids.

    Notable solar projects in the country (installed and projected)

    282930

    Current Solar Projects

    Project Name: O&L Nexentury Solar PV Plant
    Location: Just outside of Windhoek, Namibia
    Capacity: 100 megawatts
    Details: O&L Nexentury, a subsidiary of the Ohlthaver & List (O&L) Group, is investing over USD 55.9 million in this solar plant. It will connect to one of NamPower’s largest substations and supply electricity to local industrial users and the Southern African Power Pool. Phase I of the project is expected to be operational by mid-2024.

    Project Name: Solar Energy Project in Outapi
    Location: Outapi, Namibia
    Capacity: 9,000 MWh/year
    Details: Operational since July 2018, this project is supported by ClimatePartner and contributes to local infrastructure, education, and economic growth. It reduces CO2 emissions by 9,300 tons annually.

    Future Solar Projects

    Project Name: Schonau Solar Energy PV Project
    Location: Karas, Namibia
    Capacity: 125 megawatts
    Details: The Schonau Solar Energy PV Project is currently in the permitting stage and is expected to be commissioned by December 2024. The project is developed by Emesco Energy Namibia and is owned entirely by Schonau Solar Energy. It will cover 200 hectares and generate 338,714 MWh annually, offsetting 331,973 tons of CO2 per year. The electricity will be sold to the Southern African Power Pool under a 25-year Power Purchase Agreement.

    Project Name: SPS Solar Power Wheeling Project
    Location: Maxwell Farm, North Central Namibia
    Capacity: 10 megawatts
    Details: Developed by Sustainable Power Solutions (SPS), this solar plant will power B2Gold’s Otjikoto gold mine, located 300 kilometers away. The project, the first of its kind under Namibia’s Modified Single Buyer (MSB) framework, is expected to be operational by the end of 2024. It aims to offset 26,360 tonnes of CO2 annually.

    Project Name: Namibia’s Largest Solar Power Plant
    Location: Namibia (specific location not mentioned)
    Capacity: 100 megawatts
    Details: The solar power plant will be constructed by NamPower in collaboration with Chinese firms China Jiangxi International Economic and Technical Cooperation Co. Ltd and Chint New Energy Development (Zhejiang) Co. Ltd. The project is expected to add 100 MW to Namibia’s existing 500 MW power capacity. It is set to be operational by the second quarter of 2026. Funding will be provided with 80% from the German development bank KfW and 20% from NamPower’s balance sheet.

    Project Name: 100 MW Solar Farm
    Location: Karas Region
    Capacity: 100 megawatts
    Details: The project has signed a contract and construction is set to begin. Specific completion date is not mentioned.

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

    Company Name: HOPSOL Africa

    Website: https://hopsol.com/

    Location: 5 Von Braun Street, Southern Industrial, Windhoek, Namibia

    Products and Services:

    • EPC (Engineering, Procurement, and Construction) services for solar power plants
    • IPP (Independent Power Producer) services
    • O&M (Operation and Maintenance) services
    • Solar diesel hybrid solutions
    • Battery storage systems
    • Financing for solar power plants
    • Solar lease solutions
    • Customized energy solutions for homes, farms, businesses, and industries

     

    Company Name: Atlantic Solar Namibia

    Website: https://solarnamibia.com/

    Location: Erongo Region, Swakopmund, Namibia

    Products and Services:

    • Solar Batteries
    • Solar Panels
    • Inverters
    • Mounting solutions

     

    Company Name: Quantum Solar Investments

    Website: https://www.wikinam.org/html/ctc/cl/solar-energy-and-heating-equipment/264/windhoek-061/quantum-solar-investments/contact.html

    Location: Number 78 Nickle Street, Prosperita, Windhoek, Khomas, Namibia

    Products and Services:

    • Solar Systems: Grid-Tied, Off-Grid, Hybrid
    • Solar Water Heaters
    • Solar Water Pumps
    • Large-Scale Irrigation Systems

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