By Anoop Hariparsad, digital energy BU leader, Anglophone Africa at Schneider Electric.
The South African solar energy market has certainly gone through an exciting time, marked by surging demand, fluctuating prices, and changing government policies. Last year was one for the books; with the looming threat of prolonged and severe loadshedding, both homeowners and businesses scrambled to install solar panels and backup power systems.
In fact, the upsurge in solar PV installations was so significant, BloomBergNEF’s (BNEF’s) First-Quarter Global Photovoltaic (PV) Market Outlook predicted that South Africa would become the tenth-largest PV market in 2024.
After last year’s mad scramble, 2024 heralded a normalised energy landscape, albeit with a mixture of distributed energy resources (DERs) such as solar PV.
Now, almost two thirds through the year, it would seem the rollercoaster is gaining momentum again; the country has a more stable grid, and whilst loadshedding is not over, government remains buoyant about its improved performance. The energy landscape has changed again.
A double-edged sword
Where does this leave the solar PV marketplace? Do businesses and homeowners continue to pursue their solar PV project dreams? The short answer is, yes. Not only does renewable energy give way to a prosumer economy, it also contributes to the continued stabilisation of the grid and ultimately the country’s decarbonisation goals.
Anoop Hariparsad, digital energy BU leader, Anglophone Africa at Schneider Electric.
Importantly, solar PV panel and batteries have gone through a significant price reduction in the last year, which is good news indeed for consumers. According to the International Energy Agency (IEA), the world’s solar manufacturing capacity is set to remain at more than double annual installations in the coming years, with the dynamics of oversupply continuing to depress panel prices. This global oversupply of solar systems has seen solar PV panel prices dropping by as much as 50% between January and December 2023.
Consumers, however, must continue to tread carefully, particularly in a marketplace that is becoming more affordable, but equally oversaturated, with bewildering array of choices. For example, many of the new products on the market may not meet South African standards for safety and performance, potentially leading to issues such as fires, infrastructure damage, and insurance complications.
It is therefore crucial that consumers and businesses alike remain discerning in their choices. Partnering with reputable suppliers and ensuring that all products meet local regulations and certifications is essential. Failure to do so could result in serious consequences, such as insurance claims being denied if non-compliant equipment is installed.
Solar remains key
If one considers the above, it is clear that despite ups and downs in pricing, demand and grid stability, consumers and businesses should seize the moment and invest in solar. The trick is to be conservative and cautious, striking a balance between affordability and quality to ensure that investments in solar technology are both safe and sustainable.
Overall, the South African solar PV market is here to stay, which is good news indeed. The reduction in loadshedding is providing relief, but for the country to truly benefit from a stabilised grid it must adopt a hybrid posture that combines grid power with renewable sources, establishing a sustainable energy landscape for the future.
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