Peer effects and cheaper financing drive double-digit solar growth in Africa

By: 

Seth Onyango, bird story agency

Africa is on track to add 23GW of solar by 2028, a twofold jump over 2024 figures — as subsidies and peer influence accelerate adoption among homes and businesses.

Rooftop installations initially took off in Kenyan, Nigerian and South African suburbs as a means to escape erratic power supply, with peer influence driving uptake among wealthier households, particularly in South Africa.

That effect is now spreading to low-income areas, including rural areas where the primary demand is for lighting, according to the report.

New Global Solar Council (GSC) projections show a 119.8% surge in Africa’s solar capacity from 19.2GW in 2024 to 42.2GW by 2028, with installations projected to jump 42% year-on-year in 2025.

Still, this growth taps only a fraction of Africa’s vast solar potential. “It’s critical to unlock this resource to meet climate targets,” the report states.

Africa added just 2.4GW of solar last year, slightly below 2023 levels. Analysts attributed the dip to a “recalibration” as the markets diversify beyond South Africa and Egypt.

By 2025, however, 18 African nations are expected to install at least 100MW annually, up from just two in 2024.

“This means more solar in more countries, cutting costs, creating jobs, and spurring industrial growth,” the GSC said.

While Africa holds 60% of the world’s best solar resources, solar PV (photovoltaics) generates only 3% of its electricity — a glaring gap that policymakers and investors are racing to close.

High borrowing costs remain a challenge, with solar capital expenses three to seven times higher than in developed markets. The continent also draws just 3% of global energy investments, far below the $200 billion needed annually to meet climate and energy goals.

The GSC underscores the importance of blended finance, green bonds, and de-risking tools to lower borrowing costs.

Private investment is rising, particularly in utility-scale projects, but still falls short. For instance, the International Finance Corporation (IFC) recently launched a $150 million solar fund, targeting Senegal and Zambia.

Solar’s role is also expanding beyond household electrification. Sectors like green hydrogen and e-mobility, driven by abundant, cheap solar power — are emerging as key growth drivers.

Read also: Women strengthening their role in Africa’s green economy

Egypt, for example, aims to generate 42% of its grid power from solar by 2035 to support its hydrogen ambitions, while Kenya’s Roam Electric is rolling out solar-powered EV charging stations.

Africa’s solar shift is also fueling innovation and partnerships. Rwanda and Ethiopia are exploring cross-border energy-sharing models to stabilize supply using excess solar generation.

Meanwhile, global manufacturers are eyeing the continent’s expanding solar market. European and Chinese firms are in talks to build local assembly plants, which could reduce costs and strengthen supply chains.

This momentum reflects a growing recognition of solar’s pivotal role in reshaping Africa’s energy future.

bird story agency

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