South Africa is falling behind in solar energy growth despite having some of the best solar resources in the world and facing an energy crisis.
In 2024, the global solar and wind energy sector grew by 16%, according to the London-based Energy Institute. This accounted for 75% of new capacity, yet Africa’s solar growth was only 9.7% — the slowest globally.
South Africa added just 1.1GW of new solar capacity in 2024 — less than half of what it added in 2023 — bringing its total installed solar photovoltaic (PV) capacity to 8.97GW. Solar energy contributes only about 8.2% to the country’s electricity mix, revealing a significant gap between potential and progress.
Experts say South Africa should be a leader in the clean energy transition, given its abundant sunlight and urgent need to overcome persistent power cuts from ageing coal plants. Instead, it trails smaller nations such as Hungary and Chile, where 22%-25% of electricity comes from solar. South Africa’s slow adoption is mostly due to regulatory challenges and infrastructure problems rather than a lack of incentives.
“We haven’t entirely missed the global solar wave,” says clean energy researcher Nick Hedley. “But given our solar resources and energy crisis, we should be leading this transition, not lagging.”
Major barriers include increased import duties on solar panels, introduced in mid-2024 to protect local manufacturers. While panel prices fell globally, these higher tariffs and customs delays have raised installation costs, especially for small businesses and township enterprises, slowing investment and expansion. Though the South African Revenue Service says most solar imports clear customs quickly, changing policies frustrate the industry.
“Import tariffs and customs delays raise capital costs, weakening the business case for investment,” says Ashley Slattery of the SOLA Group.
Infrastructure issues also hamper growth. About 15GW of approved renewable projects are on hold due to bottlenecks in the electricity grid, particularly in the Northern Cape, which has exceptional solar resources.
Without rapid upgrades to transmission lines, transformers and storage systems, expanding solar capacity will be difficult.
Given our solar resource and energy crisis, we should be leading this transition, not lagging
— Nick Hedley
Meanwhile, Eskom spent about R30bn on diesel in 2024 to fill supply gaps when coal power failed — a costly fallback that competes with potential investments in renewables. Battery storage, which could store excess solar power and help with managing demand, remains largely absent at scale. Solar plants have sometimes been ordered to reduce output because the grid cannot absorb all the energy produced.
Still, some private sector successes exist, such as Norwegian renewable energy company Scatec’s Kenhardt facility, which combines solar, battery storage and grid expertise.
“Our success with the Kenhardt hybrid facility shows what’s possible when policy, procurement and private sector capabilities are aligned,” says Alberto Gambacorta, Scatec’s GM for Sub-Saharan Africa.
South Africa’s energy transition is also held back by an electricity system still heavily dependent on coal, which is used to produce about 80% of the country’s power; this makes South Africa one of the top greenhouse gas emitters in the world.
While rooftop solar installations have surged in recent years, reaching more than 2GW by 2025, this private uptake is still not matched by widespread government-backed expansion programmes.
Questions on infrastructure constraints were sent to Eskom and the new National Transmission Company South Africa. They acknowledged receipt but did not respond.
The slow pace of renewable energy adoption is due to multiple barriers beyond infrastructure and tariffs. Financial constraints, regulatory uncertainty, limited education and maintenance support, and security concerns all affect the willingness of household and businesses to invest in solar. Only about 10% of South African households use solar power, despite the country’s excellent solar potential.
Globally, while the renewable sector is growing rapidly, fossil fuels still meet 60% of new energy demand, and Africa receives only 3% of global energy investment. Solar finance costs in Africa are three to seven times higher than in developed countries. Scaling up low-cost financing and making community solar projects easier to implement are critical to tapping the continent’s vast solar potential.
South Africa’s large solar resource and expertise are clear. The main missing components are urgency, effective policy implementation, streamlined regulations and grid investment. Without addressing these, South Africa risks falling further behind as other countries advance their clean energy transitions. The sun shines abundantly, and the technology exists, but political will and coherent strategy are essential for the country to realise a clean energy future in line with global climate goals.
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