South Africa Solar Photovoltaic Market Size, Growth | 2031

Report Description

South Africa Solar Photovoltaic Market Outlook

The South Africa Solar Photovoltaic Market size was valued at USD XX Billion in 2022 and is expected to surpass USD XX Billion by 2031, expanding at a CAGR of 11.17% during the forecast period, 2023 – 2031. The growth of the market is attributed to rising demand for renewable energy.`

The solar energy sector was virtually non-existent prior to the launch of the Renewable Energy Independent Power Producers Program (REIPPP) in 2011. However, after the program's inception, installed capacity for solar PV reached more than 30% of total renewable energy in 2018. With more than 2,500 hours of sunlight per year, solar energy is the most easily accessible resource in South Africa.

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The average solar radiation level in the country ranges between 4.5kWh/m² and 6.5kWh/^m2 per day. Under REIPPP, the country’s aim is to install 8,400 MW of solar PV generation capacity by 2030, enough to power 1.5 million households.

Furthermore, the country intends to install 18 GW of solar PV by 2050. The market is expected to grow as Eskom, South Africa's state power utility, plans to sign several renewable energy projects with private producers.

These projects are expected to generate 2,305 MW of green power, mostly from solar and wind. This is expected to increase investment for solar PV manufacturers, which is anticipated to spur the solar photovoltaic market in the coming year.

Following the outbreak of COVID-19, the country's solar power market experienced a slight slowdown, with low demand for small-scale solar projects and low investments in large-scale solar projects in first and second quarter of 2020.

Despite travel restrictions and supply chain disruptions, solar PV installed capacity in 2020 increased by 37% year-over-year (YoY). This massive increase in 2020 was attributed to large-scale solar PV projects that were completed in the same year.

Furthermore, falling solar PV module and system costs, combined with supportive government policies, are expected to drive the market during the forecast period.

South Africa Solar Photovoltaic Market Trends, Drivers, Restraints, and Opportunities

• Increasing initiatives and support from government is projected to drive the market growth.

• Rising competition from alternative renewable energy sources such as onshore wind power, small hydropower, and bioenergy can limit the market growth during the forecast period.

• High cost of installation, timely maintenance, and Covid 19 pandemic is estimated to hinder the market growth.

• Growing demand for energy is anticipated to create immense opportunities for the market players.

Scope of South Africa Solar Photovoltaic Market Report

The report on South America solar photovoltaic market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

South Africa Solar Photovoltaic Market Segment Insights:

Crystalline silicon to account a large market share

Based on types, the market is segregated into crystalline silicon and thin film. The dominant semiconductor used in photovoltaic technology for the production of solar cells is crystalline silicon. These cells are put together to form solar panels.

Monocrystalline (single-crystal) or multicrystalline silicon is used to make typical crystalline silicon solar cells. Since 1950s, crystalline silicon solar cells have dominated the photovoltaic market. Silicon is nontoxic and abundant in the earth's crust, and silicon PV modules have demonstrated long-term stability over the years.

A thin film is a layer of material that ranges in thickness from fractions of a nanometer (monolayer) to several micrometers. The controlled synthesis of materials, also known as deposition, is a critical step in many applications. The thin film segment is expected to grow at a steady rate in the projected timeline

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Roof top segment is anticipated to expand at a rapid pace

On the basis of deployments, the South America solar photovoltaic market is segregated into ground mounted and roof top. Despite the fact that utility-scale solar PV projects have gained a significant share of the market small-scale rooftop solar PV systems continue to play an important role in the solar industry.

Furthermore, rooftop solar provides benefits of modern electricity services to households that previously did not have access to electricity, lowering electricity costs. The Green Cape Smart Electricity project has focused on creating an environment for rooftop PV and other small-scale embedded generation (SSEG) technologies, which can result in the installation of more than 200 MW of rooftop installations in the coming year.

Rooftop solar PV systems have the potential to transform South Africa's energy system. More than 11 GW of solar PV on residential rooftops in metropolitan municipalities in the country is technically and economically feasible.

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