How solar energy is transforming South Africa’s energy landscape

SOUTH Africa’s solar energy sector has seen remarkable growth in recent years. This has been driven by falling equipment costs, technological advancements, and a shortage of electricity.

- IRMA PIENAAR

Globally, the cost of solar panels and batteries has dropped by as much as 40% to 60% over the past two years, in addition to improvements in panel efficiency and battery power density.

This means users can now install fewer units to achieve the same output.

Combined with a more easily navigated regulatory framework and the risk of loadshedding returning, solar energy has become an increasingly viable option for households and businesses across the country.

One of the most significant advantages of solar energy is how quickly it can be deployed. Residential installations can be completed in a single day, while larger commercial systems typically take just a few months.

Financial institutions have responded by offering tailored financing solutions, making solar more accessible to homeowners. Initially, uncertainty around how solar systems worked posed a barrier, but as adoption grows and success stories are shared, that uncertainty is quickly fading into distant memory.

What's driving solar forward?

In the short term, the most significant opportunities lie in continued residential and commercial uptake, especially as electricity prices continue to rise by more than 10% annually.

Financing mechanisms such as home loan integration, leasing options, and short-term payment plans are helping to drive this growth forward.

On the utility scale front, however, opportunities are shaped by external factors like grid capacity, government infrastructure programmes, and the evolution of energy trading models.