South Africa Rooftop Solar Market Segmented By Technology (Thin Film, Crystalline Silicon), By Grid-type (Grid Connected, Off-grid), By End-use (Residential, Commercial, and Industrial), By Region, Competition, Forecast and Opportunities 2028

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Summary

Report Description

 

Forecast Period

2024-2028

Market Size (2022)

1.56 GW

CAGR (2023-2028)

7.97%

Fastest Growing Segment

Industrial

Largest Market

Thin Film

 

South Africa rooftop solar market is anticipated to grow at a steady pace in the forecast period, 2024–2028. The acceptance of solar energy systems in South Africa market is anticipated to be supported by the expanding government assistance and the declining cost of rooftop solar panel procurement, installation, and maintenance, which will fuel the country's solar rooftop industry.

A photovoltaic (PV) system with its electricity-generating solar panels positioned on the roof of a residential or business building or structure is known as a rooftop solar power system, sometimes also known as a rooftop PV system. Photovoltaic modules, mounting systems, cables, solar inverters, and other electrical accessories are some of the system's many parts.  Rooftop mounted systems are a type of dispersed generation since they are modest in comparison to utility-scale solar ground-mounted photovoltaic power stations with capacities in the megawatt range. Grid-connected solar power systems represent most rooftop PV plants. Residential rooftop PV systems normally have a capacity of 5 to 20 kW, whereas those installed on commercial buildings frequently have a capacity of 100 kW to 1 MW. Industrial-scale PV systems with a power range of 1 to 10 Megawatts can be installed on very big rooftops.

Declining Cost of Solar PV Systems

Equally domestically and internationally, the price of solar photovoltaic (PV) systems has significantly decreased in past few years. Households’ customers in South Africa, who largely install solar rooftop PV systems, are started to invest in renewable energy because of rapidly falling solar photovoltaic (PV) costs and drastically rising power pricing by ESKOM (South Africa's main electricity provider). Due to this, the market is projected to growth, during the forecast period.

Rooftop solar PV prices continued to drop price steadily in the year 2020. According to IRENA, the weighted-average LCOE (levelized cost of energy) of solar PV for residential and commercial PV projects in South Africa decreased to USD 0.091/kWh in 2020, 11.7% less than in the year 2019, and virtually decreased by 55% between the time duration of 2013 and 2020. In 2020, the total installed cost of solar PV for the residential sector was USD 1,575 per kW, a significant decrease from 2013.

Despite Covid-19's effects, rising countries demand for solar PV equipment and lengthy international shipping times have driven up the price of solar PV systems in South Africa. The growth in solar PV panel costs is anticipated to have a minimal effect on the demand for solar PV panels from the rooftop sector, nevertheless, as ESKOM power rates have climbed by about 300% over the past 10 years. The adoption of solar PV and related systems in South Africa is anticipated to be supported by the declining costs of rooftop solar panel procurement, installation, and maintenance, which will propel the country's solar rooftop PV sectors.

 


Market Growth is Accelerated by the Commercialization of Solar Electricity Integrated into Buildings

 

A system known as "building-integrated photovoltaics" (BIPV) involves incorporating photovoltaic modules into the building's exterior structure, such as the roof or the façade. BIPV systems can generate electricity while also acting as building construction materials, which reduces the need for fossil fuels and the emission of ozone-depleting gases while also improving the building's architectural and aesthetic appeal. Since this technology is still in its beginning and BIPV technology have more positive favourable impact in the forecast period. However, several businesses have recently joined the South African market and begun offering services like as developing and commissioning BIPV-capable buildings.

In April 2021, Visaka Industries in India, received a patent from the South African Patent Office for its 'ATUM' solar roof product. The patent, with 20-year term, was granted for the innovation known as "eco-friendly energy-generating roofs." A solar-power generating roof can be used as a roof, ATUM is composed of cement boards mixed with solar panels (made of poly- or mono-crystalline solar cells). When compared to standard rooftop installations on the same amount of land, the design boosts generation by roughly 20% to 40%, and when compared to galvanised steel sheets, the roof minimises the effects of heat and rain without the need for an insulation mat underneath. Visaka Industries has announced that the device is anticipated to be released commercially in South Africa shortly due to the nation's significant solar potential and serious ongoing energy crisis. Owing to which the BIPV can offer energy security and sustainable building materials since South Africa is now experiencing an energy crisis. Accordingly, in the future, the advancement and commercialization of affordable BIPV solutions would continue to represent a sizable opportunity for the South African rooftop solar industry.

Government Regulations and Financial Incentives Might Restrain the Market Growth

Although South Africa has considerable solar photovoltaic potential, there haven't been many incentives for the growth of small-scale rooftop solar PV installations, which are common in the majority of the world's rapidly expanding renewable energy markets. Due to a lack of restrictions, there many policies/standards and laws for developing small-scale solar energy projects. This affects both the rooftop solar PV sector and the larger renewable energy business in the country. Additionally, it discourages commercial and industrial (C&I) investors who are hesitant to take a chance on sizable bets in a setting where rules are hazy.

There are feed-in tariff programmes accessible across the nation. The country is still developing these tariffs for rooftop solar system. The Western Cape provincial authorities has put in place a Feed-in Tariff Scheme (FTS) at the provincial level, allowing solar PV systems to be grid-tied and feed in any extra electricity produced. Owing to this launch of scheme the demand of the Rooftop Solar across the nation is gaining traction.

Moreover, rooftop solar PV owners in the nation can profit from a net metering programme by pumping back energy into the grid at a rate of about USD 0.039 per kWh with benefiting a bi-directional electrical metre. However, switching from a pre-paid electricity metre to the necessary bidirectional electricity metre entails a large monthly admin bill and expense, which lessens the economic appeal, particularly for small residential consumers. Additionally, the South African government has falllen behind in terms of offering enough incentives for residential and C&I consumers to transition to rooftop solar PV, despite the lofty renewable energy targets established by the government. Throughout the forecast period, these factors are expected to have a negative impact on the South Africa rooftop solar market’s growth.

Recent Development

  • A solar PV rooftop plant was built at the Cornubia Mall in Kwa-Zulu Natal, South Africa, by Investec Property in March 2022. The plant powers the entire mall and eases the strain on the electrical grid. Its projected DC and AC capacities are 5.25 MWp and 4.29 MW, respectively.
  •  In Africa, SOLA Assets has developed over 305 MW of solar PV projects, while SOLA Build has constructed over 30 MW of embedded-generation solar PV projects, largely for the private sector.
  • In 2021, Solareff solar PV plants generated enough electricity to power an electric vehicle for 380 million kilometres, prevented the burning of over 38 500 tonnes of coal, avoided the emission of over 70 500 tonnes of CO2, removed 1400 coal trucks from the road, and conserved 97 million litres of water.
  • In 2021, solar energy with storage would be more affordable than grid electricity for most South African commercial and industrial clients. The levelized cost of electricity for a 1 MW rooftop solar installation with a 250-kilowatt energy storage system was predicted by the Institute for electricity Economics and Financial Analysis to be between USD 0.071 and 0.073 per kWh in 2022. In comparison to grid tariffs and the price of diesel generator-generated electricity, it is anticipated that installing solar rooftop systems for commercial and industrial clients will become less expensive during the projected period.

Market Segment

South Africa rooftop solar market is divided into technology, grid-type, end-user, and region. Based on technology, the market is divided into thin film and crystalline silicon. Based on grid-type, the market is divided into grid connected and off-grid. Based on end use, the market is divided into residential, commercial, and industrial. Based on region, the market is divided into Gauteng, KwaZulu-Natal, Western Cape, Eastern Cape, Mpumalanga, Limpopo, Northwest, Free State, and Northern Cape.

Market Players

Major market players in the South Africa rooftop solar market are GENERGY, Valsa Trading (Pty) Ltd, Solareff (Pty) Ltd, JA Solar Holdings, ROMANO SOLAR, Sola Group, BrightBlack Energy Pty Ltd, Tasol Solar, and Sunworx Solar.

Attribute

Details

Base Year

2022

Historic Data

2018 – 2021

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Million and CAGR for 2018-2022 and 2023-202

Report Coverage

Revenue forecast, company share, growth factors, and trends

Segments Covered

Technology

Grid-type

End User

Region Scope

Gauteng, KwaZulu-Natal, Western Cape, Eastern Cape, Mpumalanga, Limpopo, Northwest, Free State, Northern Cape

Key Companies Profiled

GENERGY, Valsa Trading (Pty) Ltd, Solareff (Pty) Ltd, JA Solar Holdings, ROMANO SOLAR, Sola Group, BrightBlack Energy Pty Ltd, Tasol Solar, Sunworx Solar

Customization Scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Report Scope:

In this report, the South Africa rooftop solar market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

  • South Africa Rooftop Solar Market, By Technology:
    • Thin Film
    • Crystalline Silicon
  • South Africa Rooftop Solar Market, By Grid-type:
    • Grid Connected
    • Off-grid
  • South Africa Rooftop Solar Market, By End-use:
    • Residential
    • Commercial
    • Industrial
  • South Africa Rooftop Solar Market, By Region:
    • Gauteng
    • KwaZulu-Natal
    • Western Cape
    • Eastern Cape
    • Mpumalanga
    • Limpopo
    • Northwest
    • Free State
    • Northern Cape

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the South Africa rooftop solar market.

Available Customizations:

South Africa rooftop solar market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

South Africa rooftop solar market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.3.  Markets Covered

1.4.  Years Considered for Study

1.5.  Key Market Segmentations

2.    Research Methodology

2.1.  Baseline Methodology

2.2.  Key Industry Partners

2.3.  Major Association and Secondary Sources

2.4.  Forecasting Methodology

2.5.  Data Triangulation & Validation

2.6.  Assumptions and Limitations

3.    Executive Summary

4.    Voice of Customers

5.    South Africa Rooftop Solar Market Outlook

5.1.  Market Size & Forecast

5.1.1.    By Value

5.2.  Market Share & Forecast

5.2.1.    By Technology (Thin Film and Crystalline Silicon)

5.2.2.    By Grid-type (Grid Connected and Off-grid)

5.2.3.    By End-use (Residential, Commercial, and Industrial)

5.2.4.    By Region (Gauteng, KwaZulu-Natal, Western Cape, Eastern Cape, Mpumalanga, Limpopo, Northwest, Free State, Northern Cape)

5.3.  By Company (2022)

5.4.  Market Map

6.    Gauteng Rooftop Solar Market Outlook

6.1.  Market Size & Forecast

6.1.1.    By Value

6.2.  Market Share & Forecast

6.2.1.    By Technology

6.2.2.    By Grid-Type

6.2.3.    By End-Use

7.    KwaZulu-Natal Rooftop Solar Market Outlook

7.1.  Market Size & Forecast

7.1.1.    By Value

7.2.  Market Share & Forecast

7.2.1.    By Technology

7.2.2.    By Grid-Type

7.2.3.    By End-Use

8.    Western Cape Rooftop Solar Market Outlook

8.1.  Market Size & Forecast

8.1.1.    By Value

8.2.  Market Share & Forecast

8.2.1.    By Technology

8.2.2.   By Grid-Type

8.2.3.    By End-Use

9.    Eastern Cape Rooftop Solar Market Outlook

9.1.  Market Size & Forecast

9.1.1.    By Value

9.2.  Market Share & Forecast

9.2.1.    By Technology

9.2.2.    By Grid-Type

9.2.3.    By End-Use

10. Mpumalanga Rooftop Solar Market Outlook

10.1.             Market Size & Forecast

10.1.1. By Value

10.2.             Market Share & Forecast

10.2.1. By Technology

10.2.2. By Grid-Type

10.2.3. By End-Use

11. Limpopo Rooftop Solar Market Outlook

11.1.             Market Size & Forecast

11.1.1. By Value

11.2.             Market Share & Forecast

11.2.1. By Technology

11.2.2. By Grid-Type

11.2.3. By End-Use

12. Northwest Rooftop Solar Market Outlook

12.1.             Market Size & Forecast

12.1.1. By Value

12.2.             Market Share & Forecast

12.2.1. By Technology

12.2.2.By Grid-Type

12.2.3. By End-Use

13. Free State Rooftop Solar Market Outlook

13.1.             Market Size & Forecast

13.1.1. By Value

13.2.             Market Share & Forecast

13.2.1. By Technology

13.2.2.By Grid-Type

13.2.3. By End-Use

14. Northern Cape Rooftop Solar Market Outlook

14.1.             Market Size & Forecast

14.1.1. By Value

14.2.             Market Share & Forecast

14.2.1. By Technology

14.2.2. By Grid-Type

14.2.3. By End-Use

15. Market Dynamics

15.1.             Drivers

15.2.             Challenges

16. Market Trends & Developments

17. Policy & Regulatory Landscape

18. Company Profiles

18.1.             GENERGY

18.1.1. Business Overview

18.1.2. Key Revenue and Financials (If Available)

18.1.3. Recent Developments

18.1.4. Key Personnel

18.1.5. Key Product/Services

18.2.             Valsa Trading (Pty) Ltd

18.2.1. Business Overview

18.2.2. Key Revenue and Financials (If Available)

18.2.3. Recent Developments

18.2.4. Key Personnel

18.2.5. Key Product/Services

18.3.             Solareff (Pty) Ltd

18.3.1. Business Overview

18.3.2. Key Revenue and Financials (If Available)

18.3.3. Recent Developments

18.3.4. Key Personnel

18.3.5. Key Product/Services

18.4.             JA Solar Holdings

18.4.1. Business Overview

18.4.2. Key Revenue and Financials (If Available)

18.4.3. Recent Developments

18.4.4. Key Personnel

18.4.5. Key Product/Services

18.5.             ROMANO SOLAR

18.5.1. Business Overview

18.5.2. Key Revenue and Financials (If Available)

18.5.3. Recent Developments

18.5.4. Key Personnel

18.5.5. Key Product/Services

18.6.             Sola Group

18.6.1. Business Overview

18.6.2. Key Revenue and Financials (If Available)

18.6.3. Recent Developments

18.6.4. Key Personnel

18.6.5. Key Product/Services

18.7.             BrightBlack Energy Pty Ltd

18.7.1. Business Overview

18.7.2. Key Revenue and Financials (If Available)

18.7.3. Recent Developments

18.7.4. Key Personnel

18.7.5. Key Product/Services

18.8.             Tasol Solar

18.8.1. Business Overview

18.8.2. Key Revenue and Financials (If Available)

18.8.3. Recent Developments

18.8.4. Key Personnel

18.8.5. Key Product/Services

18.9.             Sunworx Solar

18.9.1. Business Overview

18.9.2. Key Revenue and Financials (If Available)

18.9.3. Recent Developments

18.9.4. Key Personnel

18.9.5. Key Product/Services

19. Strategic Recommendations

20. About Us & Disclaimer

Figures and Tables

Frequently asked questions

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The key players profiled in the South Africa rooftop solar market are GENERGY, Valsa Trading (Pty) Ltd, Solareff (Pty) Ltd, JA Solar Holdings, ROMANO SOLAR, Sola Group, BrightBlack Energy Pty Ltd, Tasol Solar, and Sunworx Solar.

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High domestic rooftop solar potential and the declining cost of solar PV systems and favorable government regulations are the factors driving the market growth in the forecast period.

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Rooftop solar systems are solar photovoltaic (PV) panels that can be installed on building roofs to produce electricity.

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Lack of significant government regulations and financial incentives are restraining the market growth in the future period.

Related Reports

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Parvati Sharma

Account Manager BD
Press Release

South Africa Rooftop Solar Market is Expected to be Dominated by the Crystalline Silicon Segment

Aug, 2023

The declining cost of solar PV systems are the factors driving the market growth in the forecast period.

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