South Africa's solar capacity reached 1.1 GW in 2024, contributed nearly half of Africa’s total 2.5 GW additions despite a decline from 2023. Regulatory reforms and private sector initiatives continue to drive growth, which solidifies South Africa's leadership in expanding solar capacity on the continent.
Solar Capacity Additions in 2024
South Africa continues to expand its solar capacity, which demonstrates resilience and innovation despite a dip in installation figures compared to 2023. The South African Photovoltaic Industry Association (SAPVIA) has forecasted a bright future for solar energy as regulatory reforms and private sector initiatives drive the sector forward.
In 2024, South Africa added approximately 1.1 GW of solar capacity. While this is a decline from the 2.6 GW added in 2023, it still accounted for a significant portion of the continent’s total solar capacity additions. According to AFSIA’s “Africa Solar Outlook 2025,” Africa collectively added 2.5 GW of new solar capacity in 2024, with South Africa contributing almost half.
Dr Rethabile Melamu, CEO of SAPVIA, attributed the growth to the restructuring of the South African energy supply industry. The introduction of regulatory reforms has paved the way for private sector participation in power generation. Melamu noted that private procurement was a key driver of solar growth in 2024. This growth was supported by bilateral power purchase agreements (PPAs) and energy trading applications.
Private sector involvement has accelerated since early 2023. In 2023, 2,738 MW of projects across 384 sites were registered with the national energy regulator. Last year, this increased to 2,880 MW across 454 projects. Many of these projects are set to become operational in 2025 and 2026, thus ensuring a steady pipeline of new capacity.
Public and Utility-Scale Projects
Public procurement has also played a vital role. Six utility-scale solar projects totalling 708 MW reached financial close in 2023 and 2024. Of these, 75 MW has already entered construction, with the remainder scheduled to start in early 2025.
The seventh round of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) also contributed significantly. This round awarded contracts for 1,760 MW of capacity across eight projects at an average tariff of $0.0252 per kWh. These projects are expected to achieve financial close by 2026 and commence construction later that year.
SAPVIA predicts rapid growth in solar capacity additions, with South Africa expected to install 2.5 GW to 3 GW in 2025 and 3.5 GW to 4 GW in 2026. Private and public sector projects will drive this growth, supported by plans for a wholesale electricity market by 2031 and investments in transmission infrastructure. Melamu highlighted these efforts as vital for sustaining solar deployment over the next five years.
Declining costs of solar and battery energy storage systems (BESS) are creating opportunities in the commercial and industrial sector. Businesses are adopting solar and BESS to address grid instability and manage peak demand, which is driven by benefits like tariff arbitrage and energy reliability. Although residential solar installations slowed in 2024, tax incentives and feed-in credit schemes are being considered to make solar more accessible to lower-income households, potentially boosting demand.
Africa's Solar Capacity in Context
Across Africa, solar capacity reached 19.2 GW in 2024. While this accounted for only 0.5% of new global solar capacity, it marked a significant milestone for the continent. South Africa and Egypt led the way, contributing 78% of Africa’s total additions. However, AFSIA expects this distribution to diversify as major projects begin in other countries in 2025.
AFSIA identified financing as a key challenge limiting Africa’s ability to exploit its solar potential. The report expressed hope for evolving financial streams that would enable the continent to harness its vast solar resources. In 2024, 40 GW of new solar projects were announced across Africa, thus marking a 21% increase compared to 2023.
South Africa remains at the forefront of Africa’s solar energy growth. With regulatory reforms, private investment, and public procurement driving the sector, the country is well-positioned to increase its solar capacity in the coming years. As costs continue to decline and technology advances, solar energy is set to play a pivotal role in South Africa’s energy transition.