Dublin, Sept. 06, 2023 (GLOBE NEWSWIRE) -- The "South Africa Solar Energy Systems Market Segmented By Product Type (Solar Panels, Solar Inverters, Solar Batteries), By Service, By End-Use, By Region, Competition, Forecast & Opportunities, 2028F" report has been added to ResearchAndMarkets.com's offering.
The South Africa Solar Energy Systems market is poised for robust growth, marked by a value of USD 826.73 million in 2022 and a projected CAGR of 15.84%
This upward trajectory can be attributed to several key factors, including the substantial decrease in solar photovoltaic (PV) installation costs, a concerted push to reduce reliance on coal-based power sources, heightened awareness about net-zero emissions goals, and the support of favorable governmental initiatives.
South Africa has witnessed a significant reduction in the cost of solar PV installations over recent years. According to data from the International Renewable Agency (IRENA), the average installed cost of utility-scale solar PV decreased from USD 1,321 per kW in 2019 to approximately USD 1,148 per kW in 2020, reflecting a substantial 15% decline in installation expenses.
Within the context of utility-scale solar PV installations, the price breakdown reveals that solar PV modules and inverters contribute to over 40% of the overall cost, followed by 34% for the balance of the system (BoS), and the remaining portion encompassing soft costs and installation expenses.
This trend of diminishing installed costs for PV systems is predominantly driven by consistent advancements in solar PV technology, economies of scale, and the establishment of competitive supply chains. This trajectory is poised to continue, thereby fostering heightened adoption of solar energy systems across the country in the forthcoming forecast period.
Notably, the cost of residential solar PV installations is also witnessing a substantial reduction in South Africa. In 2020, the average installed cost of solar PV installations for the residential sector was recorded at USD 1,575 per kW, a marked decrease from USD 3,145 per kW in 2015 and USD 1,864 in 2019. This encouraging trend, coupled with rising electricity prices by ESKOM, has prompted a surge in the solar PV market, prompting increased clean energy investments from households, as well as commercial and industrial customers.
Against this backdrop, the National Energy Regulator of South Africa (NERSA) granted national power utility Eskom the authorization to implement an average tariff increase of 9.61% for the 2022/23 financial year. This tariff revision includes a 3.49% hike for the year 2022/23, in addition to legacy decisions from prior years, resulting in a cumulative 9.61% increase. This confluence of elevated electricity tariffs and simultaneous reduction in residential solar PV costs makes solar PV installation a more attractive proposition for consumers in South Africa in the coming years.
With these factors in mind, the declining cost of solar PV installations is poised to be a pivotal driver propelling the South Africa Solar Energy Systems market throughout the forecast period.
Efforts To Reduce Over-Reliance on Coal-Based Power Plants:
South Africa is the seventh-largest producer of coal in the world, and its thermal power plants are mostly dependent on coal. Nearly 82% of the total installed capacity and 76% of the whole energy production in 2021 will come from coal-based thermal power plants. With 15 operating power plants and a net installed capacity of about 39.3 GW as of 2021, South Africa is ranked as the 11th greatest greenhouse gas emitter in the world.
Nevertheless, South Africa has large domestic coal deposits but has a severe electrical crisis. The Council for Scientific and Industrial Research (CSIR) estimates that load shedding occurred for 1,169 hours in 2021, with an upper limit of 2,521 GWh in comparison to the 1,775 GWh of actual energy shed.
To refocus its operations on the production of renewable energy and the mitigation of emissions, the national power company ESKOM is also attempting to reform its organizational capacities. During the forecast period, these initiatives are anticipated to boost the possibilities for renewable energy sources like solar energy while also increasing the demand for solar energy systems.
Increasing Awareness about Net-Zero Emission Plan:
Solar energy is a safe and environmentally friendly substitute for fossil fuels that can lower greenhouse gas emissions, reduce the effects of climate change, provide energy security, and enhance consumers' standard of life. South Africa produces 40% of the continent's CO2 emissions and has the largest carbon footprint in Africa. Due to this, the government is focusing on decarbonization methods.
For instance, to support South Africa's decarbonization efforts to achieve net-zero emissions by 2050, the government of South Africa launched a new, ambitious, and long-term collaboration in November 2021 called the Just Energy Transition Cooperation. These initiatives are expected to boost the market for solar energy systems over the next years and increase the prospects for renewable energy sources like solar energy.
Favorable Government Initiatives:
In order to encourage Independent Power Producers (IPP) to finance grid-connected renewable energy projects across the nation, the South African government established the South African Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
Furthermore, according to the IRP for 2019, the government expects to provide a total of 1000 MW worth of solar PV systems annually, between 2022 and 2030, owing to which the requirement for solar energy systems is anticipated to grow in South Africa over the next few years.
Increasing Competition from Onshore Wind Energy
In South Africa, the increasing developments in the wind power sector are likely to restrain the growth of the South Africa solar energy systems market during the forecast period. On the other hand, other renewable power sources, such as hydro and bioenergy, have comparatively slower growth than the wind energy sector.
Thus, the rising competition from alternative clean energy sources, such as onshore wind energy projects, in diversifying the renewable power sector is expected to restrain the growth of the solar energy systems market during the forecast period.
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the South Africa Solar Energy Systems market.
- Canadian Solar South Africa (Pty) Ltd.
- Seraphim Solar System Co- Ltd- System
- iG3N (Pty) Ltd
- IBC SOLAR South Africa (Pty) Ltd
- First National Battery
- ARTsoar (Pty) Ltd
- Trina Photovoltaic South Africa Ltd.
- Jinko Solar Co., Ltd.
- Ginlong (Solis) Technologies Co- Ltd
- Lento Industries Pvt- Ltd
Report Scope:
Voice of Customer
- Brand Awareness
- Key Factors Considered While Selecting Manufacturers
- Key Satisfaction Level
South Africa Solar Energy Systems Market, By Product Type:
- Solar Panels
- Monocrystalline
- Polycrystalline
- Thin Film)
Solar Battery
- Lithium Ion
- Lead Acid
- Flow Battery
Solar Inverters
- Central
- String
- Micro
South Africa Solar Energy Systems Market, By Service:
- New Installation
- Maintenance & Repair
South Africa Solar Energy Systems Market, By End-Use:
- Commercial
- Residential
- Industrial
- Agriculture
South Africa Solar Energy Systems Market, By Region:
- Gauteng
- KwaZulu-Natal
- Western Cape
- Eastern Cape
- Mpumalanga
- Limpopo
- North-West
- Free State
- Northern Cape
For more information about this report visit https://www.researchandmarkets.com/r/g1t718
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