Africa Market Outlook for Solar PV 2025-2028
Capital costs for solar are 3 to 7 times higher in Africa than in developed countries, and the continent only receives 3% of global energy investment - fare from the $200 billion per year
Stand-alone solar PV mini-grids have installed costs in Africa as low as USD 1.90 per watt for systems larger than 200 kilowatt. Solar home systems provide the annual electricity needs of off-grid households for as little as USD 56 per year, less than the average price for poor-quality energy services.
In South Africa, the cost of installing solar panels varies significantly depending on several factors. On average, solar panel installation costs between R70,000 for a modest home to R350,000 for a larger home. These figures encompass the expenses related to equipment, labor, and other installation costs.
South Africa has seen a significant drop in solar panel prices, with costs falling as low as R3.50 per watt. This reduction—driven mainly by a decrease in global polysilicon prices and increased production—presents a substantial opportunity for businesses and consumers alike.
IRENA estimates that with the right enabling policies, Africa could be home to more than 70 gigawatts of solar PV capacity by 2030. The report discusses challenges in policy making and proposes a coordinated effort to collect data on the installed costs of solar PV in Africa, across all market segments.
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