Zambia Solar Report

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

  1. Solar Power Potential Zambia. (2019). SmartSolar Zambia. Retrieved from http://www.smartsolar-zambia.com/solar-sector-information/solar-power-potential-zambia/
  2. Energy Profile of Zambia. (2015). Retrieved from https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Africa/Zambia_Africa_RE_SP.pdf
  3. Global Petrol Prices (December 2022).  Zambia electricity prices. Retrieved from https://www.globalpetrolprices.com/Zambia/electricity_prices/
  4. Statista. Zambia: reliability of the electricity supply. Retrieved from https://www.statista.com/statistics/1316160/share-of-individuals-with-a-reliable-supply-of-electricity-in-zambia/
  5. says, M. T. C. (2024, May 6). Zambia set for 60 MW/20 MWh of solar, storage. Pv Magazine International. Retrieved from https://www.pv-magazine.com/2024/05/06/zambia-set-for-60-mw-20-mwh-of-solar-storage/
  6. Admin. (2023, January 18). Zambia to Develop 2GW of Solar Energy. ZambiaInvest. Retrieved from https://www.zambiainvest.com/energy/solar-energy-masdar-mou/
  7. Mandvi Singh, & Mandvi Singh. (2019, May 7). Zambia awards solar capacity at record low tariff. Down to Earth. https://www.downtoearth.org.in/energy/zambia-awards-solar-capacity-at-record-low-tariff-64364
  8. Figure 9. Comparison of Zambia’s power tariffs against various cost. . . (n.d.). ResearchGate. https://www.researchgate.net/figure/Comparison-of-Zambias-power-tariffs-against-various-cost-benchmarks_fig6_228304217
  9. Energy Regulatory Board (2023) – Zambia Installation Capacity 2023. Retrieved from https://www.erb.org.zm/wp-content/uploads/files/esr2023.pdf
  10. World Bank (2023). ZAMBIA | Beyond Connections: Energy Access Diagnostic Report Based on the Multi-Tier Framework. https://documents1.worldbank.org/curated/en/477041572269756712/pdf/Zambia-Beyond-Connections-Energy-Access-Diagnostic-Report-Based-on-the-Multi-Tier-Framework.pdf
  11. Jowett, P. (2024, May 17). Zambian IPP launches tender for 50 MW of solar. Pv Magazine International. https://www.pv-magazine.com/2024/05/17/zambian-ipp-launches-tender-for-50-mw-of-solar/
  12. Takouleu, J. M. (2023, February 23). ZAMBIA: A 33 MWp solar photovoltaic power plant goes into operation in Kitwe. Afrik 21. https://www.afrik21.africa/en/zambia-a-33-mwp-solar-photovoltaic-power-plant-goes-into-operation-in-kitwe/
  13. Zambia’s Copperbelt Energy inaugurates 60MW solar PV plant  | African Energy. (n.d.). African Energy. https://www.africa-energy.com/live-data/article/zambias-copperbelt-energy-inaugurates-60mw-solar-pv-plant
  14. Wikipedia contributors. (2024, April 25). Itimpi Solar Power Station. Wikipedia. https://en.wikipedia.org/wiki/Itimpi_Solar_Power_Station
  15. Liaokerblom. (2023, December 18). Tenth portfolio company in Zambia scaling up access to energy through mini-grids | Nefco. Nefco. https://www.nefco.int/news/tenth-portfolio-company-in-zambia-scaling-up-access-to-energy/
  16. Standard, G. (n.d.). Gold Standard latest News. Gold Standard. https://www.goldstandard.org/news/project-spotlight-light-after-dark-zambia
  17. says, M. T. C. (2024, May 6). Zambia set for 60 MW/20 MWh of solar, storage. Pv Magazine International. Retrieved from https://www.pv-magazine.com/2024/05/06/zambia-set-for-60-mw-20-mwh-of-solar-storage/
  18. Zambia Design Engineer Average Salary in Zambia 2024 – The complete guide. (n.d.). https://www.salaryexplorer.com/average-salary-wage-comparison-zambia-design-engineer-c242j257
  19. Average solar engineer salary in Zambia for 2024. (n.d.). World Salaries. https://worldsalaries.com/average-solar-engineer-salary-in-zambia/
  20. Zambia population (2024) – Worldometer. (n.d.). https://www.worldometers.info/world-population/zambia-population/#google_vignette
  21. Hire and pay employees in Zambia. (n.d.). https://www.deel.com/employees/zambia
  22. Water Tariffs in Zambia : http://www.ewsc.co.zm/docs/2017-approved-tarrif-schedule.pdf
  23. Industrial property to rent in Chinika. (n.d.). https://www.property24.co.zm/industrial-property-to-rent-in-chinika-114360141
  24. 57 commercial properties to let in Lusaka | Seeff Zambia. (n.d.). https://www.seeff.co.zm/results/commercial/to-let/lusaka/
  25. Subsidies for solar in Zambia. (2019). SmartSolar Zambia. Retrieved from http://www.smartsolar-zambia.com/solar-sector-information/subsidies-for-solar-in-zambia/
  26. Renewable Energy Strategy and Action Plan – Renewable Energy Feed-in Tariff (REFiT) Strategy, Zambia. https://www.moe.gov.zm/wp-content/uploads/2022/08/Renewable-Energy_final-file_for-web.pdf
  27. Wikipedia contributors. (2024, April 25). Zambia Riverside Solar Power Station. Wikipedia. https://en.wikipedia.org/wiki/Zambia_Riverside_Solar_Power_Station
  28. Energy Laws and Regulation – Zambia . https://www.globallegalinsights.com/practice-areas/energy-laws-and-regulations/zambia/
  29. Renewable Energy Regulation – Zambia . https://www.erb.org.zm/renewable
  30. Projects – REA. (n.d.). https://www.rea.org.zm/projects/
  31. SmartSolar Tanzania. (2019, April 15). Solar companies in Zambia | SmartSolar Zambia. SmartSolar Zambia. http://www.smartsolar-zambia.com/solar-sector-information/solar-companies-in-zambia/
  32. ENF Ltd. (n.d.). ENF Ltd. https://www.enfsolar.com/directory/installer/Zambia

Key points

  • All figures have been converted into USD

Yearly sunshine (sun hours per year)

The availability of sunny hours per year is around 2,000-3,000 for most parts of Zambia, with annual solar radiation of 5.5 kilowatt-hours per square meter per day.1

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kWh per kWp installed

The annual generation per unit of installed PV capacity in Zambia is approximately 1.6 – 1.8 MWh/kWp/year. 2

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Average cost per kWh from utility company

As of September 2023, the price of electricity for households in Zambia was USD 0.022 per kWh. The electricity price for businesses was USD 0.033 per kWh.3

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Reliability of electrical power supply grid

As per report published in 2024, around 20% of the population in Zambia is connected to an electric grid in 2020. For one-quarter of the respondents, the electrical connection worked about half the time, occasionally or never. On the other hand, 57% of the individuals did not have a connection to the electric grid in the country.4

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Detailed Information

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

    As of 2023, Zambia had a total installed solar power capacity of approximately 124 MW.5

    Total solar panel production capacity (projected)

    The government has signed agreements to develop 2 GW of solar energy by 2030.6

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

    Exact information about energy tariffs by source is difficult to find on the internet due to limited resources. However, Here are the average costs of various electricity generation sources in Zambia.78

    • Coal: Approximately $0.10 – $0.15/kWh
    • Hydropower: Approximately $0.04 – $0.07/kWh
    • Solar Photovoltaic (PV): Approximately $0.07 – $0.8/kWh
    • Diesel and Heavy Fuel Oil (HFO): Approximately $0.15 – $0.3/kWh

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

    As of the latest data, the energy mix in Zambia is as follows:9

    • Hydropower 83%
    • Thermal 8.7%
    • Heavy fuel oil 2.9%
    • Diesel 2.2%
    • Solar photovoltaic 3.2%

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

    Zambia has been facing challenges with consistent electricity supply, especially in rural areas. On average, urban areas receive about 20-23 hours of electricity per day, while rural areas receive 15-18 hours per day.10

    Number of residential solar panel installations

    Obtaining exact figures for the number of residential solar panel installations in Zambia is challenging due to limited publicly available data. However, there is substantial activity in the solar sector, driven by various companies providing solar solutions for residential, commercial, and industrial applications.

    Several companies, such as World Solar Solutions Zambia, are actively involved in residential solar installations, offering services that include consultation, design, installation, and maintenance of solar systems.

    Total number of solar farms (installed and projected)

    Zambia has a total number of 3 solar farms currently installed and 5 projected solar farms to be established in coming years.11121314

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

    The current off-grid solar capacity in Zambia includes both installed and projected capacities from various initiatives. Significant projects are underway to increase access to clean energy through mini-grids and solar lighting solutions.1516

    Installed Capacity:

    • Zambia has a notable presence of off-grid solar solutions. Companies like Namene have distributed over 720,000 pico solar lights across the country, greatly enhancing energy access in rural areas​
    • Zambian Rising Sun, supported by the Beyond the Grid Fund for Africa (BGFA), plans to build 11 solar-based mini-grids with capacities ranging from 50 kWp to 200 kWp. These mini-grids aim to provide electricity to approximately 19,000 people by the end of 2027​

    Projected Capacity:

    • By 2030, the goal is to establish 100 mini-networks in Zambia, significantly boosting off-grid solar capacity. These efforts are part of a broader initiative to achieve universal access to clean energy​

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

    As of 2024, Zambia has made substantial progress with various renewable energy projects, particularly in grid connected solar power systems. The country has installed solar capacities totaling around 124 MW and is planning further expansions​. Increase urban electrification to 100% by 2030, up from the current rate of 68%.176

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

    The average salary of workers in the solar industry is described below.1819

    • Electrical Engineer: 150-300   USD
    • Electrician: 100-200  USD
    • Design Engineering Manager: 450-600   USD
    • Solar Engineer: 200-400  USD
    • Solar Energy / Solar Power Engineer: 200-400 USD

    Population of the country

    The population of Zambia is approximately 21,376,880 as of 2024.20

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

    The average overhead costs of solar panel production in Zambia encompass several key components. Labor costs for operating machinery and assembling panels are significant, often influenced by local wage rates. Overhead costs, including utilities and facility maintenance, also play a crucial role.

    Labor Costs:21 The cost of labor is a substantial part of the overhead. The average sits around $100 USD per month, but can vary significantly by industry, experience, and location. Here’s the information on labor costs in Zambia.

    Minimum Wage:

    • Public Sector: Around $100 USD per month
    • Private Sector (non-agricultural): $150 USD per month

    Utilities Charges: Energy and water consumption is a major component of the overhead.

    • Electricity Cost:3As of September 2023, the price of electricity for households in Zambia was USD 0.022 per kWh. The electricity price for businesses was USD 0.033 per kWh.
    • Water Charges:22Effective January 1, 2017, water tariffs increased across various categories. For domestic metered customers, USD 0.15 per m³.

    Facility Maintenance:2324 Maintaining the manufacturing facilities, including rent, equipment maintenance, and repairs, typically ranges from $1,000 to $3,000 per month. There is no information is available at internet to estimate the rent for commercial properties.

    Administrative Expenses:1819 Costs associated with management, office supplies, and other general expenses can add up, usually accounting for about 5-15% of total overhead costs. The average salary of workers in the solar industry is described below.

    • Electrician: 250-400 USD
    • Solar Energy / Solar Power Engineer: 400-700 USD
    • Solar Installation Electrician: 200-350 USD

    Quality Control: Ensuring panels meet performance and safety standards includes costs for testing and inspections, which can be significant.

    A summary of the energy infrastructure

    Zambia’s energy infrastructure is predominantly based on hydroelectric power, with major contributions from the Kariba Dam on the Zambezi River, Kafue Gorge, and Victoria Falls hydroelectric plants. As of the latest data, the country’s energy mix is as follows: 83% hydropower, 8.7% thermal, 2.9% heavy fuel oil, 2.2% diesel, and 3.2% solar photovoltaic. Despite this reliance on hydro power, Zambia experiences periodic power shortages due to droughts affecting water levels.

    To mitigate these challenges and diversify its energy sources, Zambia is investing in solar power projects and exploring thermal power from coal and biomass. Ongoing infrastructure improvements focus on modernizing the grid, expanding generation capacity, and enhancing transmission and distribution networks. Additionally, the government is engaged in regional energy integration projects to bolster energy security and stability. While Zambia’s energy sector is firmly rooted in hydropower, continued investment and diversification are essential for a reliable and sustainable energy future.9

    Some of the government regulations surrounding solar panel production

    Following are the regulation surrounding solar panel generation:2829

    Draft Net Metering Regulations (2022):

    The Energy Regulation Board (ERB) issued draft regulations allowing households and businesses to generate their own electricity and export excess to the grid. This policy encourages solar panel adoption and reduces reliance on the national grid.

    Integration of Different Power Sources:

    Zambia’s energy mix includes hydro, solar, and other renewable sources. The country is working towards integrating these different sources to ensure a reliable and sustainable energy supply.

    Manufacturing Standards:

    Zambia has regulations in place to ensure the quality and safety of solar panels and other renewable energy technologies. The Energy Regulation Act No. 12 of 2019 provides the legal framework for the regulation of the energy sector in Zambia.

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

    2526

    Rural Electrification Fund (REF):

    This fund is managed by the Rural Electrification Authority (REA) and is aimed at implementing the rural electrification programme in Zambia.

    Duty and VAT Exemptions

    The Zambian government has made certain aspects of solar products duty and VAT exempt. Energy efficient lighting lamps, discharge lamps, solar batteries and inverters for solar power are duty free.

    Renewable Energy Feed-in Tariff (REFiT) Strategy

    This strategy started in 2017 and is specifically implemented to support renewable energy sources. It provides payments to eligible renewable power projects, with an aim of installing 200MW in the first phase.

    Beyond the Grid Fund for Zambia:

    This fund aims to bring basic clean energy access to one million Zambians and accelerate private-sector growth in energy generation and distribution in the country. The size of the fund is 20 million euros (22.5 million dollars).

    Notable solar projects in the country (installed and projected)

    Notable solar projects in Zambia are as follows 111213142730

    Bangweulu Solar Park

    • Installed Capacity: 54 MW
    • Location: Kafue District, in Lusaka Province.

    Ngonye Solar Park:

    • Installed Capacity: 34 MW
    • Location: Kafue District, in Lusaka Province

    Itimpi Solar Power Station:

    • Installed Capacity: 60 MW
    • Location: Kafue District, in Lusaka Province

    Zambia Riverside Solar Power Station:

    • Installed Capacity: 34 MW
    • Location: Kafue District, in Lusaka Province

    Here are some notable solar projects that are projected:

    Chunga Solar Project

    • Location: Chunga
    • Expected Capacity: 120 MW
    • Features: This project is part of Zambia’s initiative to boost its renewable energy capacity and ensure energy security.

    Kafue Solar Project .

    • Location: Kafue
    • Expected Capacity: 50 MW
    • Features: Aimed at increasing the share of renewable energy in Zambia’s power supply, this project is expected to help meet growing energy demands

    Serenje Solar Power Station

    • Location: Kosamu Village, Chitambo District, Central Province
    • Expected Capacity: 200 MW
    • Features: The project is rated as the largest solar project in the country. The power station is under development by Ultra Green Corporation Zambia Limited, a subsidiary of Ultra Green Corporation Inc., an American independent power producer (IPP).

    Kalulushi Concentrated Solar Power Station:

    • Location: Kalulushi District, in the Copperbelt Province
    • Expected Capacity: 200 MW
    • Features : The power station is under development by three IPPs, Margam Valley Solar Energy Corporation, Afrisolar Power and EnergyLine Zambia. The power generated here will be integrated into the national grid through Zambia Electricity Supply Corporation Limited (ZESCO).

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

    Here are some notable solar companies in Zambia, along with references to their contributions to the solar energy sector: 3132

    • Suntech Appropriate Technology Ltd: A Zambian company registered since 1993, specializing in small, medium, and large scale solar, power back-up, and hybrid solar systems. They provide solar street lights, solar geysers, solar water pumps, solar fridges, etc
    • Solar Macs Energy : A leading Zambian solar innovated organization with partners around the world. They supply and install solar panels, solar water pumps, solar batteries, inverters, street lights, flood lights, DC pressing iron, solar charge controllers, solar geysers, and many other solar products.
    • ZamSolar : Also known as Zambezi Amigo Solar Energies Ltd., they provide end-to-end solar solutions designed to meet the energy needs of their customers. Established in 2016 in Hyderabad, India, they have expanded their operations to include an international office in Zambia, Africa.
    • SunnyMoney : A social enterprise owned and funded by the UK Charity SolarAid. They are the largest seller of solar lights and phone chargers in Africa4. They distribute portable solar lights to Zambia, Malawi, and Uganda.
    • Greenfields Energy Corporation: A Zambian company that develops on and off-grid solar systems and water pumping systems5. They aim to provide sustainable resources primary to human daily existence, namely energy and water.
    • Muhanya Solar: A Zambian company that supplies and installs renewable energy systems of various sizes and for different applications, focusing on solar and wind7. They have been providing alternative and cost-effective energy solutions to businesses, farmers, and households in Zambia for over a decade.
    • Captain Electrical: A Zambian company that specializes in solar lights, mainly for Government Institutions especially in rural Zambia and Residential areas. They offer solar power consultancy, training, supply, and installations.
    • Fenix Intl: A part of global utility Engie, Fenix International started out in Zambia in 2017 and has since benefited more than 300,000 customers with their clean energy, impacting over 1.5 million lives. They offer expandable solar home systems, providing lighting, phone charging, TV, radio, and more, financed through affordable instalments via mobile money (MTN).

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