South Africa Solar Energy Market, By Technology (Solar Photovoltaic (PV) and Concentrated Solar Power (CSP)), By Solar Module (Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon Cells, Others), By End-Use (Residential, Commercial, Industrial), By Application (Electricity Generation, Lighting, Heating, Charging), By Region, Competition, Forecast and Opportunities, 2018-2028F

South Africa Solar Energy market is anticipated to grow at a steady pace in the forecast period, 2024–2028. Since 2018, solar installations in the country have grown significantly. The total installed capacity in South Africa reached 4822 MW in 2021, representing an increase of over 15.55% compared to the previous year’s value. Solar power is becoming more accessible and prevalent across the country than ever before. Solar power is the generation of energy using various technologies to generate electricity.

The word "solar energy" refers to energy that is extracted from solar radiation and can be converted into several forms, including heat and electricity. Solar energy is an exciting replacement for traditional fossil fuels that are scarce, contributing to climate change since it is sustainable and plentiful. Solar energy can be generated using a variety of technologies, such as photovoltaic cells and concentrated solar power systems, which convert sunlight directly into electricity and utilize the heat from the sun to generate energy for a variety of uses. There are several benefits to using solar energy, including a reduction in greenhouse gas emissions and dependency on fossil fuels, as well as the promotion of a cleaner and more sustainable energy future.

Government Efforts to Reduce Over Reliance on Coal Based Power Plant

South Africa is the seventh-largest producer of coal in the world, and their thermal power plants are mostly dependent on coal. Nearly 82% of the total installed capacity and 76% of the whole energy production in 2021, came from coal-based thermal power plants. With 15 operating power plants and a net installed capacity of about 39.3 GW as of 2021, South Africa ranked as the 11th greatest greenhouse gas emitter in the world. However, South Africa faces a serious electrical deficit while having substantial local coal deposits. According to the Council for Scientific and Industrial Research (CSIR), load shedding took place for 1,169 hours (13% of the time) in 2021, with a maximum of 2,521 GWh in comparison to the 1,775 GWh of energy shed. The energy crisis has been primarily caused by overreliance on older coal-based thermal power plants, owned and operated by the national power utility ESKOM (South Africa's primary electricity supplier).

Additionally, the production of power is more environmentally damaging and produces a lot more greenhouse emissions. ESKOM estimates that upgrading the utility's aging coal-fired fleet to meet minimal emission regulations will cost about (USD 15140 Million) ZAR 300 billion. The state-owned utility has developed a plan to address rising energy demand and offer affordable power after realizing the futility of running an outdated coal-fired fleet in the face of expanding demand. ESKOM developed the Just Energy Transition (JET) strategy as part of the Integrated Resource Plan, which was last revised in 2019, to hasten the repurposing and repowering of its power plants and actively pursue a stake in the allocation of renewable energy. According to this plan, ESKOM said in August 2021 that it planned to shut down 8–12 GW of its coal-fired fleet by 2030.

Due to the country's present energy crisis, steady growth in power consumption is anticipated during the predicted period. In order to adequately make up for the retired capacity and fulfil the rising demand for energy, South Africa must balance the closure of its coal-fired power with increase in its new renewable capacity. To reorient its operations towards the production of renewable energy and the reduction of emissions, the national power company, ESKOM, is also attempting to reform its organisational capacities. During the projection period, these initiatives are anticipated to boost the prospects for renewable energy sources like solar energy, thereby increasing the demand for solar energy.

Reduction in Cost of Solar Energy installation & Growing Usage of Solar Photovoltaic (PV) Technology Fuelling the Market Growth

Around the world, between 2010 and 2020, the cost of solar PV decreased by around 82%. In South Africa, over the same time, comparable patterns were observed. Consequently, variables like the falling cost of solar PV and related technologies are crucial ones for the growing use of solar energy. Cost of solar PV have decreased in South Africa, for instance, where they were ZAR 3.3514 (USD 0.17) per kWh on average, in 2011 and ZAR 0.87 (USD 0.044) in 2020. As a result, factors like the falling cost of solar PV and related technologies, are crucial in driving up the use of solar energy.

Moreover, in comparison to concentrated solar power, solar photovoltaic (PV) technology is predicted to account for the largest share. This is because of the country's supportive policies and increased emphasis on meeting various capacity objectives. During the projected phase, this will aid in the expansion of South Africa's entire solar energy sector. For instance, the South African solar power industry is directed by solar photovoltaic (PV) technology with an installed capacity of 4322 MW. With accelerating technical advancements and simple installation processes, solar PV technology has been evolving more quickly. For the same reason, solar PV technology is preferred by residential, commercial, and industrial customers over other renewable energy sources like wind and biomass. Solar PV can be directly used by the consumers like rooftop solar and can be coupled with battery storage systems for off-grid use.

Rising Consumption of Natural Gas Restraining the Market Growth

South Africa has been attempting to diversify its energy sources by importing natural gas in the form of LNG as its energy problem got worse in the last years. Due to South America's poor indigenous gas reserves, only 3,000 MW of gas-fired capacity was allotted in the 2019 Integrated Resource Programme (IRP). However, since the cost of LNG has decreased in the country, solar energy has become a more appealing choice for the country to avoid a repeat of its current energy crisis.

For instance, the first floating LNG storage facility in the nation will be an 8,000-ton LNG barge South African Shipyards in Durban. It will be anchored at the Coega port in the Port of Ngqura. Additionally, the company gained final authorisation from the Transnet National Port Authority (TNPA) in October 2020 to start LNG bunkering activities in the Port of Coega, in South Africa's Eastern Cape. Such huge expenditures demonstrate South Africa's efforts to scale up its LNG imports and gas-fired capacity, which is anticipated to significantly impede the country's solar energy market's growth throughout the projection period.

Concentrated Solar Power Technology in Solar Energy Propelling the Market Growth in the Forecast Period

The rapid movement towards Concentrated Solar Power Technology (CSP) due to this latest trend of using CSP in the industries market is anticipated to grow in the future. Furthermore, utility-scale projects drive the development of concentrated solar power (CSP) systems. There are several configurations for these CSP facilities, including power towers and linear systems. As solar tower is surrounded by mirrors in tower systems, this tower serves as the receiver in linear systems with columns of mirrors that direct sunlight onto receivers mounted above them in parallel tubes. The main purpose of CSP technology is to produce energy. However, it can generate heat for a variety of industrial uses, such as the oil and gas industry, water desalination facilities, chemical manufacturing, food processing, mineral processing facilities, etc. CSP provides several benefits over solar PV, including reduced investment costs, higher efficiencies, thermal storage capacity that permits power generation under cloud cover or at night, and improved hybrid operating capabilities with other fuels to fulfil base-load demand at night. Additionally, the potential for CSP projects in South Africa is quite high. A total of 547.6 GW is the estimated potential nominal capacity for South Africa, including 510.3 GW in the Northern Cape, 25.3 GW in the Free State, 10.5 GW in the Western Cape, and 1.6 GW in the Eastern Cape.

Recent Development

• In June 2021, according to an announcement made by ACWA Power, the Redstone. The total funding in the Solar Power Plant in South Africa is ZAR 11.6 billion (USD 590 Million).
• This 100 MW CSP facility is anticipated to go online in 2023 end and will capture solar energy using parabolic mirror technology.
• In addition, the South African government intends to spend more than the USD 8.5 billion in funds, announced at the COP26 climate meeting to wean South Africa off coal.

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Market Segment

South Africa Solar Energy Market is divided into technology, solar module, application, end-use, and region.  Based on technology, the market is divided into solar photovoltaic (PV) and concentrated solar power (CSP). Based on solar module, the market is divided into monocrystalline, polycrystalline, cadmium telluride, amorphous silicon cells, and others. Based on end-user, the market is divided into residential, commercial, and industrial. Based on application, the market is divided into electricity generation, lighting, heating, and charging. Based on region, the market is divided into Gauteng, Kwazulu-Natal, Western Cape, Eastern Cape, Mpumalanga, Limpopo, Northwest, Free State, and Northern Cape.

Market Players

Report Scope:

In this report, the South Africa Solar Energy Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

• South Africa Solar Energy Market, By Technology:
• Solar Photovoltaic (PV)
• Concentrated Solar Power (CSP)
• South Africa Solar Energy Market, By Solar Module:
• Monocrystalline
• Polycrystalline
• Cadmium Telluride
• Amorphous Silicon Cells
• Others
• South Africa Solar Energy Market, By End-Use:
• Residential
• Commercial
• Industrial
• South Africa Solar Energy Market, By Application:
• Electricity Generation
• Lighting
• Heating
• Charging
• South Africa Solar Energy Market, By Region:
• Gauteng
• KwaZulu-Natal
• Western Cape
• Eastern Cape
• Mpumalanga
• Limpopo
• Northwest
• Free State
• Northern Cape

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the South Africa Solar Energy Market.

Available Customizations:

South Africa Solar Energy Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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