The rapid expansion of affordable solar power is transforming how households and businesses across South Africa access and consume electricity. Falling prices for solar panels and battery storage systems—largely driven by increased imports from China—have made renewable energy solutions more accessible than ever before. As a result, solar power is reshaping daily life, business operations, and the structure of the country’s electricity market.
For years, South Africa’s electricity supply has been constrained by high tariffs and frequent power outages. Eskom’s coal-dominated generation fleet has struggled with aging infrastructure, maintenance backlogs, and rising costs, placing pressure on consumers and the wider economy. In response, households and businesses have increasingly turned to rooftop and small-scale solar installations paired with battery storage to secure reliable power and manage energy costs.
The financial benefits of solar adoption have been significant. Many users report reducing their electricity bills by up to two-thirds after installing solar and battery systems. Beyond cost savings, solar has offered greater energy security, allowing homes and businesses to operate independently during grid outages. This shift has been particularly visible in urban centres, industrial zones, and energy-intensive sectors such as agriculture and wine production.
The growing uptake of private solar generation has also had a profound impact on Eskom’s traditional business model. As more customers generate their own electricity, the utility sells less power while still bearing the fixed costs of maintaining the national grid. This imbalance has increased financial pressure on Eskom and contributed to higher tariffs, which in turn further incentivise consumers to invest in solar. Analysts often describe this cycle as a “death spiral” for centralised, coal-based electricity systems.
In response to these changes, Eskom has begun adjusting its regulatory and operational approach. Grid connection rules for private solar installations have been relaxed, and customers are now permitted to feed excess electricity back into the grid. The utility has also introduced fixed monthly connection charges alongside usage-based tariffs, aligning South Africa more closely with international electricity pricing models. Looking ahead, Eskom plans to develop utility-scale solar projects on decommissioned coal power plant sites as part of a broader transition toward cleaner energy sources by 2040.
South Africa’s experience reflects a wider continental trend. Across Africa, solar panel imports from China increased by an estimated 50 to 60 percent in 2025 compared to previous years. Countries including Nigeria, Algeria, Sierra Leone, and Chad are rapidly expanding their solar capacity, with some smaller markets installing enough imported solar equipment to rival or exceed the output of their existing national grids.
Chinese companies are also deepening their presence in Africa’s energy sector, moving beyond equipment supply to develop large-scale solar projects and modernise transmission infrastructure. This involvement presents both opportunities and challenges, offering affordable technology and investment while raising questions about long-term local value creation and energy sovereignty.
Despite strong momentum, barriers remain. Upfront costs for solar and battery systems are still prohibitive for many low-income households, and access to financing remains limited. In addition, local manufacturing capacity for advanced solar technology is minimal, meaning much of the economic benefit flows to foreign producers rather than supporting domestic job creation.
To maximise the economic and social impact of solar energy, policymakers will need to expand access to finance, support skills development, and encourage local manufacturing alongside continued deployment. With the right balance, affordable solar power has the potential not only to stabilise South Africa’s electricity supply but also to drive inclusive economic growth and long-term energy resilience.
