Recording of Wednesday, May 07, 2025 | The smarter E Europe | Conference Program | Language: English | Duration: 12:03 .
The presentation discusses the financing of solar photovoltaic (PV) systems in South Africa, with a focus on small-scale embedded generation. This sector has become increasingly important, as it helps households mitigate the energy insecurity issues experienced in the past. The speaker represents SAPVIA, a non-profit organization dedicated to promoting the growth of solar PV in South Africa and beyond. As of January 2023, the country had an installed capacity of about 8.8 gigawatts across various market segments. However, residential installations account for only around 0.7 gigawatts. This is partly due to enabling factors such as tax incentives during periods of load shedding, which encouraged adoption, although these incentives have since been discontinued by the government. Businesses, on the other hand, have benefited from attractive incentives, leading to increased deployment among SMEs and commercial facilities. Buyback programs and loans with lower interest rates have improved residential customers’ access to solar PV, promising hopeful prospects for the future. Unreliable electricity supply and frequent load shedding have been significant drivers of this growth. Additional key factors include rising electricity costs, supportive regulatory frameworks, amended legislation, and the unbundling of utilities, all contributing to reduced prices and further adoption. Financing options in these markets are competitive, with banks and energy companies offering mortgages and asset-specific loans for renewable and sustainability projects, further decreasing system costs and prices. In conclusion, Energy Service Companies (ESCOs) play an instrumental role in reducing costs and making solar PV more accessible through rent-to-own and rental models. These allow customers to pay less on their bills and own the asset after a three-year period. Unique models, such as Stockfell saving clubs—which pool resources for collective purchasing—are in their infancy but show great potential for replication across the continent. Finally, the growth of smart grids and off-grid initiatives, driven largely by Eskom’s installation of mini-grids in the Northern Cape and plans for nationwide rollouts in the coming years, highlights the scale of opportunity. The sector is now valued at the equivalent of seventy-five million euros, underscoring the size and potential of the market going forward.
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Rethabile Melamu
CEO
South African Photovoltaic Industry Association
South Africa
Photovoltaic prices have fallen continuously in recent years - a trend that should translate into a growing market for off-grid solutions. Declining costs are crucial for rural electrification in particular, making sustainable energy supply economically viable in remote regions. However, so far many of these price advantages have not yet reached the people that need them most. Do existing framework conditions to foster rural electrification still work in this new market reality? Which measures are needed to ensure that cost reductions reach our target group? This session discusses strategies for improving the availability of low-cost off-grid solutions, financing and innovative business models. A look at successful practical examples shows which political, economic and technological levers need to be pulled to make off-grid PV accessible on a large scale.
Further Talks of this session:
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Lea Dunst
International Project Manager
BSW - German Solar Association
Germany
Speaker
Benjamin Knödler
Head of Private Sector Engagement
BMZ - Federal Ministry for Economic Cooperation and Development
Germany
Speaker
Jean Basson
Managing Director
eavion
Speaker
David Wedepohl
Managing Director International Affairs
BSW - German Solar Association
Germany
Rethabile Melamu
CEO
South African Photovoltaic Industry Association
South Africa
Video is not available.
Speaker
Lea Dunst
International Project Manager
BSW - German Solar Association
Germany
Video is not available.