As 2024 draws to a close, the South African Photovoltaic Industry Association (SAPVIA) reflects on milestones and the year of growth in SA’s solar industry.
Marked by gradual growth, notable achievements, and key lessons, the year has set the stage for a brighter, greener future.
According to SAPVIA, among the 2024 milestones was SA adding 961MW of private-sector solar PV capacityby October this year – a testament to the sector's resilience despite challenges.
The country’s total solar PV capacity surged to 8.97GW, an 11.9% increase compared to 2023, it says.
This includes 2.8GW from public procurement programmes like the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and 6.1GW from private-sector contributions.
The solar industry has also become a significant economic driver by creating jobs and spearheading skills development initiatives locally.
“With almost 500MW of utility-scale projects under construction and 375MW scheduled to come online in 2025, the future of solar in South Africa looks incredibly promising,” says Dr Rethabile Melamu, CEO of SAPVIA.
“SAPVIA’s efforts in policy advocacy, such as its contributions to the Integrated Resource Plan (IRP) draft 2023 and ongoing engagements, have played a pivotal role in this growth.”
The main purpose of the IRP is to ensure security of electricity supply necessary by balancing supply with demand, while considering the environment and total cost of supply.
This, as SA continues to pursue a diversified energy mix that will provide security of supply, while ensuring compliance with its emission reduction plan.
Initiatives like the South African Wholesale Electricity Market (SAWEM) advocacy have further paved the way for increased solar PV deployment, according to SAPVIA.
The European Investment Bank and the Development Bank of South Africa further boosted their support for renewable energy projects in SA’s private sector, when they announced
a €100 million (R1.98 billion) loan to SA in September, in addition to the €400 million (R7.9 billion) financing announced at COP27 in 2022.
The continued reduction in solar PV panel and battery prices over the last year triggered an unprecedented escalation in South African solar energy adoption by residential and commercial users, according to experts.
The plummeting pricing, which started in SA last year, is expected to continue in the coming months, with more local homeowners likely to invest in solar systems, and industry manufacturers potentially eyeing SA as a viable location to establish manufacturing plants.
Overcoming challenges
This year, solar energy contributed significantly to South Africa’s 300 days of uninterrupted electricity, reducing reliance on fossil fuels and cutting carbon emissions.
“Solar PV systems supplied 5.2TWh of energy, displacing approximately 4 260 tons of CO2. As we look ahead, solar energy will not only shape South Africa’s energy future but also position the country as a global leader in renewable energy innovation,” Melamu adds.
While the industry celebrated milestones, 2024 was not without obstacles.
“Regulatory delays, grid connection backlogs, and limited financing options for SMEs posed significant hurdles,” she adds.
SAPVIA says it responded by advocating for streamlined processes with the Department of Mineral Resources and Energy and the National Energy Regulator of South Africa.
“We also launched a financing access initiative to connect SMEs with funding opportunities and foster partnerships with larger companies to share resources and expertise.”
Looking ahead, SAPVIA predicts significant developments in the energy storage sector, with growing interest in solar-plus-storage systems to address intermittency issues.
“Additionally, micro-grids will become increasingly popular, particularly in rural and remote areas where grid access remains limited. The adoption of rooftop solar for residential and commercial buildings will continue to grow as electricity prices rise and consumers seek ways to reduce dependence on the grid.
“SAPVIA is collaborating with stakeholders to develop a comprehensive grid upgrade plan that includes smart grids and energy storage integration to support renewable energy expansion.”
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