Approximately 7,240 MW of solar PV capacity is registered with the National Energy Regulator of South Africa, a new report by the South African Photovoltaic Industry Association (SAPVIA) highlights. Of this, utility-scale projects deployed under the Renewable Energy Independent Power Producer Procurement (REIPPP) program are dominating the market.
Speaking in Cape Town on May 22, Rethabile Melamu, CEO of SAPVIA, explained that the residential and commercial sectors in South Africa deployed up to 4,000 MW in the past two years alone, bringing newfound benefits regarding increased access to power.
In addition to power capacity, projects across the country’s solar market employ over 3,000 people and have created up to 11,400 indirect jobs.
“South Africa has developed important solar PV manufacturing capabilities, including [skills] to assemble modules and develop tracker systems and inverters.” stated Melamu. “Localization obligations linked to REIPPP provided some stimulus to a various domestic solar PV value chain sub-system.”
Going forward, Melamu notes that demand from local private stakeholders and efforts by the U.S. and European countries to diversify supply away from China will drive the growth of South Africa’s solar PV market, while enhancing the country’s manufacturing capability. Solar development will be further fueled by “rapid declines in prices – which were $5 in 2005, went down to $0,38 in 2019 and even lower in 2023,” Melamu added.