By Ndubuisi Micheal Obineme
…Africa’s solar capacity is projected to add new installations of 3.7 GW in 2025.
…South Africa and Egypt account for over 75% of the continent’s solar energy growth.
…Latest report shows solar energy contributes 1.6% to Nigeria’s energy mix, generating only 597.8 GWp due to the very poor grid infrastructure in-country.
…Over 18 African countries are expected to install at least 100 MW of new solar capacity in 2025.
…Polish investors see Tanzania as a prominent market for solar energy, acquires land to commence construction of large-scale photovoltaic (PV) solar projects.
…As Africa continues to progress in solar energy, the continent accounted for only 0.5% of all global new solar capacity installed in 2024.
Africa is signaling a major resurgence in solar energy growth across the continent, with 23GW of new solar installations expected in 2025. This growth is a result of many African countries adopting solar energy as part of their energy mix.
As the global push for renewable energy builds momentum, Africa also has a competitive advantage in renewable energy, including solar, beyond its oil and gas resources. Solar energy has now become an alternative electricity generation source for African countries, attracting global investments for project development.
Today, Africa’s solar energy installations stand at 19.2 GWp, according to the AFSIA African Annual Solar Outlook 2024 report. The AFSIA report outlined the growth opportunities across the solar energy value chain in Africa, highlighting the continent’s renewable energy potential and key projects to drive growth in Africa’s solar energy market.
South Africa is leading African countries with the most increase of solar installations. 79% of all new capacity installed in the past two years was installed in South Africa (close to 3,000 MWp out of a total 3,745 MWp), while Egypt surged to second place, adding 700 MW in 2024, largely from two massive utility-scale projects.
The AFSIA report also revealed that 2.5 GWp of solar capacity was installed in Africa in 2024, and 78% of these installations were done in South Africa and Egypt, representing 50% and 29% of the continent’s solar energy growth, respectively.
While Africa’s 2024 solar installations were dominated by South Africa and Egypt, the AFSIA report also acknowledged that several African countries’ commitments to solar deployment also contributed to the continent’s solar energy growth.
“The appetite for solar energy in Africa did not stop and grew another 19% in 2023 with the addition of 3.7 GWp. In 2023, the equivalent of one-third of all the solar installed historically in Africa has been added. Africa has added 2.5 GWp of new solar capacity in 2024, reaching a total of 19.2 GWp across the continent,” the AFSIA report narrated.
Source: Africa Solar Industry Association (AFSIA)
The Energy Republic findings from the report list the top five countries with the largest new solar capacities installed in 2024, which include South Africa (1,235 MWp), Egypt (707 MWp), Zambia (74.8 MWp), Nigeria (63.5 MWp), and Angola (53.8 MWp).
Notably, West African countries experienced rapid growth in solar installation, with Ghana (94 MW), Burkina Faso (87 MW), and Nigeria (73 MW) emerging as key players. Ghana nearly quadrupled its installations, while Burkina Faso’s market grew 129% year-on-year.
Also, Zambia (69 MW) doubled its solar capacity, a critical shift as droughts disrupt the country’s hydropower supply.
Angola, Ivory Coast, and Gambia all made the top 10 for the first time, marking a clear expansion beyond the region’s traditional solar powerhouses.
In East Africa, Tanzania is part of the countries in the region to significantly increase its solar energy footprint. The Government of Tanzania is leading a campaign to increase access to electricity across the country with solar energy, especially in remote areas.
In 2023, Tanzania had installed 16 MW of solar capacity, and most recently in 2024, launched a tender for the supply, installation, operation, and maintenance of an off-grid solar project in the Kasulu district of western Tanzania.
Green Capital, a Polish investor, has acquired land for its solar energy projects in Tanzania. The planned solar energy development in Tanzania includes a 10MW and a 5MW photovoltaic (PV) project, which would also contribute to East Africa’s solar energy growth.
Green Capital’s future plans in Tanzania include the development of larger-scale solar projects, integration of battery storage solutions to enhance grid stability, and potential collaboration with local stakeholders to ensure long-term energy security.
This initiative aligns with Tanzania’s push for sustainable energy solutions, contributing significantly to the country’s growing energy needs and industrialization efforts.
Speaking in a one-on-one interview with The Energy Republic, Mikołaj Kowalczyk, Green Capital’s Head of International Development & Investment, said Tanzania has favourable weather conditions to generate green energy, and the country’s renewable energy potential hasn’t been fully utilized.
He said Green Capital’s 10MW and 5MW solar project aligns with Tanzania’s push for sustainable energy solutions, and the company expects to secure building permits before the end of 2025, positioning these projects for swift construction, which will provide job opportunities in the local community.
The table below shows the lists of solar energy contribution in Africa’s electricity mix by country:
Source: Africa Solar Industry Association (AFSIA)
According to AFSIA, this data is an underestimation of the real capacity added because it does not account for residential installations (which are not yet tracked by AFSIA), stating that the figures are compiled together based only on projects identified by AFSIA, and some installations may still be unknown at this point.
In another report, the solar photovoltaic (PV) market in the Middle East and Africa was estimated to be worth over $5 billion USD. The market is anticipated to expand at a compound annual growth rate (CAGR) of 27.4% from USD 6.93 billion in 2023 to USD 37.71 billion by 2030.
Furthermore, The Energy Republic findings from the AFSIA report show that utility-scale solar projects are driving Africa’s major resurgence in solar energy growth. Utility-scale contributes 75% of the overall solar market share in Africa, representing almost 72% of all new solar capacity installed recently. This is a major shift from the last 2 years, where C&I was the leading contributor of solar in Africa, mostly driven by the market evolution in South Africa.
However, utility-scale solar currently holds the traditional weight it has had over the past decade in Africa. The market is driven again by a handful of DFI-funded projects developed by international private companies and having the national utility company as off-taker, with the financial backing of the local government.
While commercial and industrial solar, also known as C&I, plays an important role in African solar energy growth, the AFSIA report disclosed that C&I contributed 39% in South Africa’s solar market, driven by a multitude of small private C&I projects (also called embedded generation) and by large wheeling projects.
In Nigeria, solar energy contributes 1.6% to Nigeria’s energy mix, generating only 597.8 GWp.
“Due to the very poor grid infrastructure in Nigeria, the country is not fertile ground for utility-scale solar. Instead, C&I, mini-grids, and residential solar are the most prevalent forms of solar, with C&I representing the overwhelming majority of the capacity installed,” the AFSIA report noted.
Africa’s energy storage boom
Storage solutions are experiencing a tremendous boost in Africa. The annual capacity recorded by AFSIA stalled at around 50 MWh (exclusive of SHS and residential systems). The use of storage tripled in 2023 and then experienced another 10-fold increase in 2024
Source: Africa Solar Industry Association (AFSIA)
This exponential growth is likely to continue as AFSIA has already identified 18 GWh worth of projects under development.
The growth of stationary storage is increasing all over the world. The growth kicked in a few years ago with the introduction of lithium batteries, which offer a higher level of flexibility and ease of use compared to lead and gel batteries. But it is only in the last 24 months that significant new production capacity has been built (in anticipation of increasing demand for electric vehicles). This has generated economies of scale, but also overcapacity and a higher level of competition between manufacturers. All these factors have then led to sharply decreasing prices.
Source: Africa Solar Industry Association (AFSIA)
Looking forward to this year, Africa’s solar energy installations are expected to increase to 3.7GW in 2025 as 18 African countries are projected to install over 100MW of new solar capacity.
“2025 may see a major shift in the distribution of solar though, as several landmark projects have started construction in countries that do not belong to the group of ‘usual suspects’ for solar leaders in Africa,” AFSIA added in its report.
By 2028, Africa is expected to install an additional 23 GW of solar, more than doubling its current capacity.
As Africa continues to progress in solar energy, the continent accounted for only 0.5% of all global new solar capacity installed in 2024, according to AFSIA’s report.
Despite Africa’s solar energy potential coupled with its abundant sunlight, the continent’s solar potential remains largely untapped due to various challenges, including regulatory hurdles and financial constraints.
Such a low share of African solar contribution to global solar energy capacity underscores the need for a pragmatic approach that enables the continent to fully exploit its unrivalled solar potential.
To accelerate the growth of solar energy in Africa, industry stakeholders are advocating for attractive incentives and regulatory frameworks to drive more investments into Africa’s solar energy market.
Speaking on this development, Herbert Friese, General Manager of Dutch and Company Limited, outlined five key factors to accelerate Africa’s solar energy market to become more attractive for global investments.
Friese said, “One of the significant barriers to solar energy projects is the lengthy and complex permitting process. Facilitating regulators can simplify and expedite these processes, reducing the time and cost associated with project development. This can attract more investors and developers to the sector.
“Establishing clear policies and standards is essential for the growth of the African solar energy sector. Regulators should establish guidelines for grid connection, safety, and performance standards for solar installations. This ensures that projects meet quality standards and can be integrated smoothly into the existing energy infrastructure.
“Ensuring fair access to the grid is a critical factor for the success of solar energy projects in Africa. Regulators should ensure that solar energy producers have access to the grid. This includes transparent procedures for grid connection and fair pricing for the electricity generated.
“Promoting transparency and accountability in regulatory processes will build trust among investors and stakeholders. Regulators should provide clear information on regulatory requirements, decision-making processes, and the status of applications. This transparency can reduce uncertainties and encourage more investments in the sector.
“Supporting innovation and research will promote solar technologies. This can include funding for pilot projects, partnerships with research institutions, and incentives for companies that invest in innovative solutions.”
He also highlighted the importance of incentives such as tax incentives, grants, subsidies, and low-interest loans will significantly reduce the upfront costs of solar projects and make solar energy more affordable for consumers and more attractive for investors.