SAPVIA welcomes infrastructure focus in 2026 Budget; Calls for accelerated support for solar PV and grid expansion.
The South African Photovoltaic Industry Association (SAPVIA) welcomes the strong focus on infrastructure investment, energy reform and private sector participation in the 2026 Budget Speech delivered by Minister of Finance Enoch Godongwana .
“We applaud the commitment to invest more than R1 trillion in public-sector infrastructure over the medium term, such investments are critical to modernising our energy and transmission network.. The continued emphasis on regulatory reform in the energy sector has demonstrably unlocked significant private investment and accelerated the transition toward cleaner, renewable energy mix,” says SAPVIA Technical and Policy Manager Mr Sim Khuluse.
Solar PV has proven to be the fastest-to-deploy and most cost-competitive source of new electricity generation in South Africa. The next critical step is ensuring that transmission infrastructure keeps pace to unlock this full potential.
SAPVIA strongly supports progress on the Credit Guarantee Vehicle (CGV), a vital tool to mobilise large-scale investment required for transmission infrastructure . We believe that grid expansion and modernisation are the non-negotiable foundations for unlocking further renewable energy development and ensuring long-term energy security.
“We also welcome reforms to Public-Private Partnership (PPP) regulations and the continued use of the Budget Facility for Infrastructure to crowd in private capital. Solar PV and battery storage projects are well suited to blended finance and PPP models and should be prioritised within infrastructure pipelines,” says Khuluse.
While we recognise the necessity of fiscal discipline, renewable energy is a growth-enhancing investment that pays dividends. Expanding targeted tax incentives for rooftop and embedded generation, alongside support for local manufacturing of balance of plant, will be instrumental in stabilising electricity prices and mitigating long-term fiscal risk.
SAPVIA further notes the allocation of R27.7 billion for performance-linked reform of metro trading services . This presents a critical opportunity for municipalities to modernise distribution networks and partner with private developers to procure clean, affordable solar power.
“Solar PV is more than an energy solution; it is a vital economic catalyst for job creation, industrial development and long-term competitiveness. SAPVIA remains committed to partnering with National Treasury and all key stakeholders to accelerate solar deployment and secure a resilient, affordable and sustainable energy future for South Africa,” says Khuluse.
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- SAPVIA is the voice for the solar PV industry in South Africa. For more information visit sapvia.co.za
Issued by Alkemi Collective on behalf of SAPVIA
