SAPVIA briefing on localisation in the Solar PV sector
During a media briefing earlier today (Tuesday 9 December 2025), the Solar PV Industry Association of South Africa (SAPVIA) discussed the topic of localisation within the solar photovoltaic (PV) sector in South Africa.
With insights drawn from two comprehensive studies, the briefing highlighted the current state of the industry and the potential pathways for enhancing local manufacturing capabilities.
SAPVIA CEO Dr Rethabile Melamu opened the discussion by emphasising the importance of localization in the solar PV value chain. SAPVIA supports the development of local capabilities where South Africa has existing expertise, aiming to create meaningful economic impact through strategic investments, she explained. Melamu also shared with the meeting SAPVIA’s support of the implementation of the South African Renewable Energy Masterplan (SAREM).
She also provided a detailed overview of the solar PV value chain, which is divided into two main subcategories: manufacturing and assembly, and deployment.
The manufacturing subcategory includes the production of essential components such as ingots, silicon cells, and glass, while the assembly process involves bringing these components together to create PV modules. The deployment phase focuses on project development, including permitting, financing, construction, and grid connection.
“Despite having the potential for local manufacturing, South African companies predominantly engage in assembly, importing most components from countries like China. This situation contrasts with the manufacturing capabilities for balance of plant components such as mounting and tracker systems, where local production is more prevalent. While South Africa can assemble PV modules, true manufacturing that involves the entire value chain remains limited,” she said.
The briefing also shed light on the global landscape of solar PV manufacturing. China currently dominates the sector, accounting for a significant share of global production, while countries like India are emerging as competitors. The studies commissioned by SAPVIA highlight the need for South Africa to adopt a similar long-term investment strategy to build a robust local manufacturing industry.
De Villiers Botha, Deputy Chair of SAPVIA, shared insights into the historical context of localisation efforts in South Africa’s solar industry.
He recounted the challenges faced during the early REIPPP rounds, noting that many factories established to support local manufacturing were forced to close due to inconsistent policy support and a lack of sustained demand. Botha also emphasized the importance of creating jobs and highlighted the stark difference in employment numbers between assembly and large-scale solar farm projects.
The SAPVIA media briefing provided valuable insights into the localisation of the solar PV sector in South Africa. Key takeaways include the need for a strategic focus on local manufacturing capabilities, the importance of a stable policy environment to support industry growth, and the potential for job creation through investment in the solar PV value chain.
“As the industry evolves, stakeholders must work collaboratively to overcome challenges and harness opportunities for sustainable development,” said Melamu.
