Lagos: Africa’s solar power revolution is gaining traction with a significant influx of Chinese solar equipment, marking a pivotal turn in the continent’s renewable energy landscape. Solar power has long been recognized as an ideal solution for Africa, given its abundant sunlight and the increasing affordability of solar technology.
According to Deutsche Welle, the International Renewable Energy Agency (IRENA) reported that solar energy is among the cheapest worldwide, costing only $0.044 per kilowatt-hour (kWh) after a remarkable 90% drop in solar photovoltaic (PV) module prices over 13 years. Despite being a relatively small player in the global solar scene, accounting for just 1% of worldwide solar PV capacity with 18 gigawatts (GW) installed, Africa is now witnessing unprecedented growth in solar energy development.
A surge in Chinese solar panel exports has catalyzed this transformation. British renewable energy think tank Ember analyzed Chinese export data, revealing that China shipped solar panels with a total capacity of 15 GW to Africa within a year. John van Zuylen, CEO of the Africa Solar Industry Association (AFSIA), highlighted the momentum in Africa’s solar sector, noting that the continent’s total installed capacity since 2000 could be around 75 GW, considering many small-scale and off-grid installations that often go unreported.
Several countries in sub-Saharan Africa, including Zambia, Rwanda, Senegal, Côte d’Ivoire, and Nigeria, are making significant strides in solar development. Nigeria, in particular, is poised to become a leading solar market in Africa, surpassing South Africa, as solar emerges as the cheapest energy option for the nation. The high cost of diesel, previously subsidized, has driven the shift towards solar energy.
Liberia is also venturing into solar energy, diversifying its clean energy portfolio, which has primarily relied on hydropower. Emmanuel K. Urey Yarkpawolo, Executive Director of Liberia’s Environmental Protection Agency, announced that the country’s first solar park is nearing completion and is expected to come online soon.
The surge in solar equipment exports from China has sparked speculation about the impact of the US-China trade war on the market. Fawen Nyakudya, Managing Director of Zimbabwe-based PFN Solar Systems, noted that the tariff standoff between China and the United States, which included threats of exorbitant tariffs on Southeast Asian solar panels, contributed to reduced equipment costs. This situation has been advantageous for African nations seeking affordable solar technology.
Despite the influx of Chinese solar technology, storage solutions like lithium batteries and net metering are enhancing solar profitability. Countries such as Kenya, Namibia, and Zimbabwe have implemented net metering systems, allowing households with rooftop panels to feed surplus energy back into the grid, significantly increasing their profitability.
However, challenges remain. Shipping costs and import taxes, such as those in Zimbabwe, can diminish profit margins. In contrast, countries like Zambia have zero-rated import taxes on solar products to promote renewable energy uptake. The economic advantages of solar energy continue to drive investments, as highlighted by recent projects in Mauritius that offer competitive electricity prices.
In conclusion, Africa’s solar power landscape is undergoing a transformative phase, driven by a surge in Chinese equipment exports and favorable economic conditions. The continent’s growing commitment to renewable energy is poised to meet the energy needs of millions and contribute to a sustainable future.