Solar PV industry calls for “smart localisation” as solar boom exposes manufacturing gap
by Siphelele Dludla
South Africa’s rapid expansion in solar power is opening a window for industrial growth, but without coordinated policy support and a cautious approach to tariffs, the country risks missing out on the full economic benefits of the energy transition.
This is the warning from the South African Photovoltaic Industry Association (SAPVIA), which is urging government to adopt a comprehensive and pragmatic localisation strategy.
Over the past two years, South Africa has added between 2.5 and 3 gigawatts of solar photovoltaic (PV) capacity, driven largely by embedded generation in the commercial and industrial sector, as well as a fast-growing private off-take market.
The surge in rooftop solar installations, spurred by record levels of load shedding in 2023 and 202, has significantly reshaped the country’s electricity landscape, even though adoption has since moderated and is now stabilising.
Despite this strong demand, SAPVIA on Tuesday argued that local participation in the solar value chain remains limited. High-value components such as PV modules, inverters, trackers and lithium batteries are still predominantly imported, highlighting structural gaps in South Africa’s manufacturing ecosystem.
According to SAPVIA CEO, Dr Rethabile Melamu, the country is not yet converting its solar momentum into meaningful industrial growth.
Melamu said that without urgent policy alignment and a clear, long-term demand pipeline, the opportunity to build a competitive local manufacturing base could slip away.
“South Africa is experiencing a solar boom, but we are not yet fully translating that momentum into local industrial growth, especially in areas of the value chain where it makes sense to do so,” she said.
“Without urgent policy alignment and a clear, consistent demand pipeline, industrial support interventions including but not limited to long-term commitment to provision of manufacturing and tax incentives the opportunity to build a competitive local manufacturing sector could slip away.”
