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South Africa Solar Energy Market Size (2024 - 2029)

The South African solar energy market is anticipated to experience significant growth in its market size over the forecast period, driven by an increasing demand for clean energy and efforts to reduce dependence on coal-based power sources. Despite the potential restraint posed by rising natural gas consumption, the market is expected to benefit from opportunities arising from the expansion of the local solar manufacturing industry.

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Market Size of South Africa Solar Energy Industry

South Africa Solar Energy Market Summary
Study Period 2019-2029
Base Year For Estimation 2023
Market Volume (2024) 6.68 gigawatt
Market Volume (2029) 11.03 gigawatt
CAGR (2024 - 2029) 10.56 %
Market Concentration Medium

Major Players

South Africa Solar Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Africa Solar Energy Market Analysis

The South Africa Solar Energy Market size in terms of installed base is expected to grow from 6.68 gigawatt in 2024 to 11.03 gigawatt by 2029, at a CAGR of 10.56% during the forecast period (2024-2029).

  • Over the medium term, the growing demand for clean energy sources is expected to stimulate the market growth of South Africa's solar energy market. Furthermore, efforts to reduce over-reliance on coal-based power plants will also likely drive the market's growth.
  • On the other hand, the rising natural gas consumption is expected to restrain the South African solar energy market during the forecast period.
  • Nevertheless, expanding the indigenous solar manufacturing industry will likely create lucrative growth opportunities for the South African solar energy market in the forecast period.

South Africa Solar Energy Industry Segmentation

Solar power is energy from the sun that is converted into thermal or electrical energy. Solar energy is the cleanest and most abundant renewable energy source globally. Solar technologies can harness this energy for various uses, including generating electricity, providing light or a comfortable interior environment, and heating water for domestic, commercial, or industrial use.

The South African solar energy market is segmented by technology and end users. By technology, the market is segmented by concentrated solar power (CSP) and solar photovoltaic (PV). By the end user, the market is segmented by residential, commercial and industrial (C&I), and utility. For each segment, the market size and forecasts have been done based on installed capacity.

Technology
Concentrated Solar Power (CSP)
Solar Photovoltaic (PV)
End User
Residential
Commercial and Industrial (C&I)
Utility
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South Africa Solar Energy Market Size Summary

The South African solar energy market is poised for significant expansion over the forecast period, driven by an increasing demand for clean energy sources and efforts to reduce dependence on coal-based power plants. The country's abundant solar resources, particularly in the Northern Cape, make it an ideal location for solar energy projects. The government's Renewable Energy Independent Power Producer Procurement (REIPPP) program has been instrumental in attracting investment and facilitating the development of solar energy projects. Despite challenges such as rising natural gas consumption, the expansion of the indigenous solar manufacturing industry presents promising growth opportunities. The solar photovoltaic (PV) segment is expected to dominate the market, supported by substantial investments in rooftop PV panels and new solar capacity procurement initiatives.

South Africa's energy landscape is currently dominated by coal, with coal-based thermal power plants accounting for a significant portion of electricity generation. However, the aging infrastructure and frequent outages have highlighted the need for a transition to renewable energy. The country's climate policy aims to generate a substantial amount of renewable energy by 2030, with solar energy playing a crucial role in achieving this target. The market is semi-consolidated, with key players such as Canadian Solar Inc., ARTsolar (Pty) Ltd, and Energy Partners Holdings (Pty) Ltd actively contributing to the sector's growth. Recent developments, including corporate power purchase agreements and new solar PV plant connections, underscore the ongoing commitment to expanding solar energy capacity in South Africa.

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South Africa Solar Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Renewable Energy Mix, South Africa, 2023

    3. 1.3 Solar Energy Installed Capacity and Forecast, till 2029

    4. 1.4 Recent Trends and Developments

    5. 1.5 Government Policies and Regulations

    6. 1.6 Market Dynamics

      1. 1.6.1 Drivers

        1. 1.6.1.1 The Growing Demand for Clean Energy Sources

        2. 1.6.1.2 Efforts to Reduce Over-Reliance on Coal-Based Power Plants

      2. 1.6.2 Restraints

      3. 1.6.3 The Rising Consumption of Natural Gas for Power Generation

    7. 1.7 Supply Chain Analysis

    8. 1.8 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Technology

      1. 2.1.1 Concentrated Solar Power (CSP)

      2. 2.1.2 Solar Photovoltaic (PV)

    2. 2.2 End User

      1. 2.2.1 Residential

      2. 2.2.2 Commercial and Industrial (C&I)

      3. 2.2.3 Utility

South Africa Solar Energy Market Size FAQs

The South Africa Solar Energy Market size is expected to reach 6.68 gigawatt in 2024 and grow at a CAGR of 10.56% to reach 11.03 gigawatt by 2029.

In 2024, the South Africa Solar Energy Market size is expected to reach 6.68 gigawatt.

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