Written By: Faith Jemosop
South Africa is aggressively turning to solar power to combat its long-standing energy crisis. From large-scale projects to rooftop panels on homes and businesses, the country is embracing solar as a critical tool to address power cuts that have plagued the nation for over a decade. Since early 2024, a massive surge in private solar installations has begun to lift households and grid operators out of load-shedding, offering a glimpse of a more stable and sustainable energy future.
Government incentives, favorable policies, and significant private sector participation have accelerated solar uptake, while state-supported programs like the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) have drawn billions in investment for utility-scale solar farms. As of 2025, these efforts are reducing pressure on Eskom’s strained coal fleet and improving energy availability across the country.
Supporting Evidence & Trends
1. Rooftop and Private Solar Boom
Rooftop solar capacity has grown explosively, from just under 1,000 MW in early 2022 to over 4,400 MW by mid-2023. Much of this growth has come from the commercial and industrial sectors, which made up around 65% of new installations in 2023.
This surge in distributed generation has significantly reduced the burden on Eskom’s centralized grid. An estimated 1.5 to 2.5 GW of national electricity demand is now being offset by private solar generation, especially during daytime hours. Some regions have reported months without any load-shedding disruptions, particularly where solar-plus-battery systems are in use.
2. Government Incentives Driving Uptake
Several policy shifts have helped unlock solar’s potential. In 2022, the government scrapped licensing requirements for small-scale embedded generation (SSEG) and introduced feed-in tariffs, allowing homes and businesses to sell excess electricity back to the grid.
In 2023, a 25% personal income tax rebate for rooftop solar installations was rolled out (capped at R15,000), while businesses received accelerated depreciation benefits for solar investments. These financial incentives helped make solar more accessible, especially to middle- and upper-income households.
The government also expanded REIPPPP targets under Bid Window 6, increasing procurement of solar power by an additional 1,000 MW and wind by 1,600 MW to accelerate the national energy transition.
3. Utility-Scale Solar Through REIPPPP
South Africa’s flagship REIPPPP program has supported the development of multiple solar farms:
- De Aar Solar Power (48 MW PV)
- De Wildt Solar (50 MW PV)
- Kathu Solar Park (100 MW concentrated solar power with storage)
- Bokpoort CSP (50 MW with 9 hours of molten salt thermal storage)
- Khi Solar One (50 MW solar tower with 2 hours of storage)
As of late 2023, more than 6,200 MW of capacity had been delivered under REIPPPP, accounting for about 5% of South Africa’s total electricity generation. Investor interest remains high, Bid Window 7 received over 8,500 MW worth of solar bids, far exceeding the government’s initial target.
4. Business and Local Manufacturing Growth
The boom in solar installations has also sparked massive growth across the value chain. Companies like Herholdt’s Group, a major solar equipment supplier, saw their revenue increase from around $34 million in 2018 to $461 million in 2023.
Local manufacturers have responded to rising demand. Art Solar, based in Durban, has expanded production to nearly 650,000 panels annually. This shift is not only helping meet domestic needs but is also creating local jobs and reducing import dependence.
South Africa’s Power Crisis
South Africa’s electricity crisis has deep roots. Since 2008, the country has experienced routine rolling blackouts due to an aging coal-fired fleet, poor maintenance, underinvestment in new capacity, and mismanagement at Eskom. Coal still accounts for nearly 80% of the country’s power supply, but reliability has been steadily declining.
Also read: Solar vs Wind in Africa, Which Holds More Promise for the Continent’s Green Energy Future?
As a result, load-shedding, rotational power cuts, became a constant part of life. Businesses, hospitals, and schools have all been affected, prompting growing public frustration and pressure for reform.
Why Solar Makes Sense for South Africa
South Africa receives abundant sunshine year-round, with 8–10 hours of sunlight daily in many areas. This makes solar one of the most viable and cost-effective energy sources in the region.
Beyond environmental benefits, solar offers resilience for off-grid and rural communities. For instance, engineers and entrepreneurs from under-served regions are now pushing solar as a tool for local empowerment. For many South Africans, solar is not just a power source, it’s a symbol of independence.
Solar also plays a role in South Africa’s Just Energy Transition, helping meet its climate goals while reducing reliance on fossil fuels.
Technical Enablers
Modern rooftop systems often come equipped with battery storage, allowing households to store excess power for evening use and operate independently of Eskom’s grid during outages.
In addition, smart meters and demand-management tools are being introduced to help consumers reduce peak load and better integrate with the grid. These solutions are already in use in urban centers and are showing measurable improvements in reliability.
Challenges
Grid Limitations
Despite progress, the national grid poses challenges to solar expansion. Some solar-rich provinces, such as Northern and Western Cape, face grid saturation, which makes it difficult to connect new projects without expensive upgrades.
Additionally, households are required to register embedded solar systems with Eskom or municipalities, even when not exporting to the grid. Lack of compliance can result in restrictions or disconnection, creating friction for new adopters.
Municipal Pushback
Some municipalities are resisting solar integration due to fears of lost revenue from electricity sales. These areas rely heavily on selling Eskom power at a profit to fund local services and infrastructure. This presents a political and financial challenge that needs resolution through policy reform and incentives.
Access and Equity
The biggest barrier to wider adoption remains cost. Despite tax incentives, many low-income households cannot afford the R100,000+ needed for a reliable solar-plus-storage system. Financing options remain limited, and subsidies often fail to reach the poorest communities.
Meanwhile, smaller businesses and Black-owned solar startups face difficulties accessing capital or winning government contracts, limiting their ability to participate in the solar boom.
Also read: Electricity Demand in Kenya Hits Record 2,362 MW Peak
What It Means South Africa’s Energy Future
Ending Load-Shedding
Thanks to distributed solar and improved grid flexibility, many parts of South Africa have experienced fewer blackouts or even months without load-shedding. Solar energy is directly contributing to Eskom’s ability to conduct scheduled maintenance and reduce unplanned outages.
Mainstream Renewable Energy
South Africa is no longer treating solar as a fringe energy source. Rooftop installations, community grids, and mega projects are transforming the country’s energy profile. Solar has become both a household solution and a national priority.
Toward Energy Justice
To ensure a just transition, the government must address affordability, regulation, and equitable access. Community-owned solar hubs and financing mechanisms can help extend benefits to rural and informal settlements, where reliable electricity remains elusive.