South Africa’s Solar Industry Achieves Record Growth in 2024
As 2024 comes to a close, SAPVIA looks back on a transformative year, marked by notable achievements, milestones, and valuable insights. The solar industry has paved the way for a more sustainable and radiant energy future in South Africa.
Significant Growth Milestones
South Africa’s solar photovoltaic capacity surged to 8.97 GW by October 2024, driven by a significant 11.9% increase from 2023. This growth was fuelled by both public and private sector investments, bringing the country closer to a sustainable energy future.
According to SAPVIA CEO Dr. Rethabile Melamu, South Africa’s solar future is bright, with nearly 500 MW of large-scale projects currently under construction and an additional 375 MW slated to launch in 2025.
SAPVIA’s tireless policy advocacy efforts, including its input on the 2023 Integrated Resource Plan (IRP) draft and collaborations with government agencies, have played a crucial role in driving South Africa’s solar growth. Additionally, initiatives like the South African Wholesale Electricity Market (SAWEM) advocacy have helped accelerate solar PV adoption.
Economic Impact and Community Contributions
South Africa’s solar sector has emerged as a substantial economic force, generating employment opportunities and fostering skills development. Through SAPVIA’s partnership with the National Business Initiative and Absa, 100 installation companies have received training to cater to the escalating demand. This includes, SAPVIA members like SOLA have made remarkable progress in advancing private renewable energy initiatives.
Challenges Faced in 2024
2024 presented several hurdles for South Africa’s solar sector, despite its notable achievements. Key challenges included regulatory delays, grid connection backlogs, and restricted financing options for small and medium-sized enterprises (SMEs).
SAPVIA tackled the challenges head-on by pushing for simplified processes with the DMRE and NERSA, according to Melamu. Also, SAPVIA introduced a financing initiative to link SMEs with funding sources and facilitate collaborations with larger companies to share resources and expertise.
Looking Ahead: The Future of Solar in South Africa
According to SAPVIA, the energy storage sector is poised for significant growth in the coming years, driven by increasing demand for solar-plus-storage systems to address energy intermittency. Microgrids are also expected to gain traction, particularly in rural areas with limited grid access. Similarly, rooftop solar adoption for residential and commercial buildings will continue to rise as electricity prices increase and consumers seek energy independence.
SAPVIA is working closely with stakeholders to create a holistic grid modernization plan, incorporating smart grid technologies and energy storage solutions to facilitate the seamless integration of renewable energy sources, according to Melamu.
Solar Energy: Contributing to Energy Independence
In 2024, solar energy emerged as a vital component of South Africa’s energy mix, making a substantial contribution to the country’s 300 days of continuous power supply. This shift helped decrease dependence on fossil fuels and led to a reduction in carbon emissions. According to Melamu, solar PV systems generated 5.2 TWh of energy in 2024, resulting in a significant reduction of approximately 4,260 tons of CO2 emissions. Looking forward, Melamu emphasized that solar energy will play a pivotal role in shaping South Africa’s energy future and establishing the country as a pioneer in global renewable energy innovation. Moving forward, SAPVIA remains dedicated to its mission of providing all South Africans with access to clean, reliable, and affordable energy, propelling the country toward a more sustainable, energy-independent, and environmentally conscious future.