South Africa rapid expansion of solar PV capacity is creating new opportunities for industrial development, but industry stakeholders warn that policy missteps could undermine both energy security and local manufacturing growth.
The South African Photovoltaic Industry Association has urged government to adopt a cautious and phased approach to the introduction of tariffs on imported solar components, highlighting the need to balance localisation objectives with continued market growth.
Recent estimates show that South Africa added between 2.5 and 3 GW of solar PV capacity over the past two years. Growth has been largely driven by embedded generation in the commercial and industrial segment, alongside increasing activity in the utility scale private off take market. Rooftop solar installations also surged in response to severe load shedding in 2023 and 2024, reshaping the electricity landscape, although adoption has since moderated and is now gradually rising again.
Despite strong demand, local participation in the solar value chain remains constrained. High value components including PV modules, inverters, trackers and lithium batteries are still predominantly imported, limiting the country ability to capture more value from the energy transition.
According to Rethabile Melamu, South Africa has yet to fully convert its solar boom into meaningful industrial growth. She notes that without clear policy alignment and a consistent long term demand pipeline, opportunities to build a competitive manufacturing base could be lost.
SAPVIA has played a key role in shaping policy frameworks such as the South African Renewable Energy Masterplan, which aims to link renewable energy deployment with industrialisation and job creation. While such initiatives signal intent, the association stresses the importance of prioritising components that can be competitively produced locally and scaled for both domestic use and export.
The Renewable Energy Independent Power Producer Procurement Programme remains central to utility scale deployment, while the private market continues to expand rapidly. However, future growth will depend heavily on accelerated grid infrastructure development.
Industry players are calling for greater certainty around procurement pipelines and policy direction. Manufacturers require visibility over a 5 to 10 year horizon to justify capital intensive investments in production facilities.
South Africa has made progress in selected segments of the value chain, particularly in balance of system components such as mounting structures and cables, where barriers to entry are lower and existing industrial capabilities can be leveraged. However, scaling production of higher value components remains challenging due to global competition, high input costs and infrastructure constraints.
SAPVIA emphasises that localisation efforts must be pragmatic. Attempting to localise the full value chain in the short term is neither feasible nor cost effective. Instead, a targeted approach is needed to build competitive advantage in selected areas.
The association warns that proposed tariffs on imported components should be introduced gradually to avoid undermining energy deployment. A balanced approach could support local industry development while maintaining momentum in renewable energy rollout.
Growing demand across the Southern African Development Community region also presents an opportunity for South Africa to position itself as a regional manufacturing hub, with neighbouring countries scaling up renewable energy programmes.
SAPVIA is advocating for coordinated action across energy, industrial and trade policy, alongside stronger collaboration between the public and private sectors. Priority measures include improved policy alignment, targeted industrial incentives, investment in skills development and enhanced infrastructure to support manufacturing competitiveness.
The association maintains that with the right policy framework, solar PV can drive inclusive economic growth, support job creation and strengthen South Africa position in the regional energy market.
Author: Bryan Groenendaal
April 18, 2026
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