source from Global Solar Council
1. Current State of Africa’s Solar Market
Africa holds 60% of the world’s best solar resources, yet over 600 million people still lack access to reliable electricity. While solar deployment has expanded significantly in recent years, Africa’s total new PV installations in 2024 reached 2,402MW, marking a decline from 3,076MW in 2023. This was primarily due to South Africa’s market normalization and project delays in North Africa.
2. Future Growth Projections (2025-2028)
The report outlines three potential market growth scenarios:
Low-growth scenario: 9.2GW of new installations, hindered by policy uncertainty and investment challenges.
Moderate-growth scenario (most likely): 23GW of new installations with a 30% CAGR between 2025-2028.
High-growth scenario: 47GW of new capacity, achievable with strong policy support and favorable investment conditions.
In 2025, PV capacity is expected to grow by 42%, with South Africa and Egypt remaining dominant players while more countries emerge as key market contributors.
3. Key Growth Drivers
Policy Initiatives: The 2023 Nairobi Declaration set a target of 300GW of renewable energy by 2030.
Investment Potential: Africa needs $200 billion per year in energy investments, yet currently receives only 3% of global energy funding.
Diverse Applications: Growth in solar + storage, commercial & industrial (C&I) solar, residential PV, and mini-grid projects is accelerating.
4. Major Challenges
Financing Barriers: Capital costs in Africa are 3-7 times higher than in developed markets.
Grid Infrastructure Limitations: Weak grids in many countries require substantial investment.
Policy and Market Transparency: Lengthy approval processes hinder project execution in some nations.
5. Key Markets and Regional Development
South Africa remains Africa’s largest solar market (accounting for 46% of new capacity in 2024), but the market is diversifying. The top 10 solar markets in 2024 included South Africa, Egypt, Ghana, Burkina Faso, Nigeria, Zambia, Angola, Côte d’Ivoire, Morocco, and The Gambia.
6. Future Trends and Opportunities
By 2025, at least 18 African countries are expected to install more than 100MW of solar capacity—compared to just two in 2024.
Storage, e-mobility, and renewable hydrogen are emerging as new growth sectors.
Mini-grid and off-grid solutions will play a vital role in electrifying remote areas.
Conclusion
Africa’s solar market is set for rapid expansion, but financing, high capital costs, and policy coordination remain key challenges. Governments, businesses, and investors must collaborate to accelerate the continent’s clean energy transition and contribute to global sustainability goals.
For more information, please click: https://nyc3.digitaloceanspaces.com/gsc-media/documents/GSC_Africa_Market_Outlook_2025_updated.pdf
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