The South African solar energy market is poised for remarkable growth, driven by a significant decline in solar photovoltaic (PV) panel and battery prices. Experts predict an unprecedented rise in solar energy adoption by residential and commercial users across the country.
Price Reduction Sparks Adoption
Solar PV panel prices dropped by up to 50% between January and December 2023, attributed to global oversupply. This trend, starting in South Africa last year, is expected to persist, encouraging more homeowners to invest in solar systems. Industry manufacturers are also eyeing South Africa as a potential location for establishing manufacturing plants.
Ezzat Sankari, channels business director for Sungrow Middle East and Africa, highlighted the drastic fall in PV panel prices in South Africa, emphasizing the growing adoption of renewable power in the region.
Impact on Solar Power Landscape
Sungrow, a major solar energy solutions provider, has captured a significant portion of South Africa’s solar power inverter market. The company anticipates revenue growth of 20% to 30% for the remainder of the year. The decline in solar prices opens the possibility of establishing manufacturing facilities in South Africa, similar to initiatives seen in other countries like India.
Growing Demand and Policy Support
The drop in solar panel prices aligns with South Africa’s Integrated Resource Plan 2023, aimed at expanding renewable energy programs. Frederik Willemse, director of alternative renewable power solutions at Sungrow, noted a significant increase in quote requests for solar installations. Despite the reduction in solar tax breaks, the current price drop makes it an opportune time for South Africans to invest in solar power.
Factors Driving Adoption
The decreasing cost per KW/h for solar infrastructure acquisition, coupled with advancements in production speed and system performance, are key drivers of solar adoption in South Africa. Additional factors include increased competition in the solar market, favorable climate conditions, and scientific breakthroughs improving system efficiency and longevity.
Gregor Kuepper, MD of Solarworld Africa, anticipates sustained lower solar prices in the coming years, influenced by global overcapacity in production. The record uptick in solar adoption in 2023, driven by load-shedding concerns and innovative business models, signals a promising future for solar energy in South Africa.
Ross Mains-Sheard, CEO of Versofy, underscores the steady increase in solar demand over the past few years, driven by improved supply and innovative business models. Continued efficiencies in production and technological advancements worldwide are expected to further drive down solar prices over time.
Source：itweb.co.za
