Africa Solar Outlook: Unlocking Africa’s Solar Potential, Addressing Challenges and Harnessing Opportunities

Rising from the launch of the Africa Solar Outlook, Chief Executive Officer of the Africa Solar Industry Association (AFSIA) John Van Zuylen spoke to Environment Africa Magazine and other Media Representatives on the potentials from solar implementation on Africa’s Energy Poverty.

Excerpts.

In a nutshell, can you give an overview of your presentation?

Absolutely. We discussed the developments in Africa’s solar industry for 2024. Globally, it was a record-breaking year with over 500 gigawatts (GW) of solar capacity installed, marking the best year yet for solar energy.

In Africa, while the year was good, it lagged behind global progress, with about 2.5 GW installed. This brings Africa’s total capacity to just under 20 GW, representing only 1% of the global installed capacity. For a continent with such a large population and immense solar potential, there is significant room for improvement.

Nigeria has been particularly promising, ranking fourth among African countries for solar installations in 2024.

The country made strides following the removal of fuel subsidies, which has encouraged more individuals and businesses to transition to solar due to its economic advantages. This momentum is just beginning, and we expect it to snowball as awareness of solar energy’s benefits grows.

You seem to have a positive outlook, but with only 1% of global solar installations, what are the major barriers to scaling up solar in Africa?

The primary issue across Africa, including Nigeria, is risk perception. Financing is the key to scaling up solar projects, but investors often view Africa as a high-risk environment due to uncertainties like inconsistent government policies, lack of adequate protections, and political instability.

When governments announce long-term plans for solar and then fail to follow through, it erodes trust within the business community. This unpredictability discourages investments, as solar projects require significant time, effort, and resources. A stronger commitment from governments to their renewable energy plans would greatly mitigate these risks.

What are your projections on scaling up solar in Africa?

We don’t make projections, but we identify trends. A major trend is the increasing role of energy storage. Previously, storage was seen as an optional add-on to solar systems. Now, it’s a foundational element; how much storage you have often determines how much solar capacity you can deploy.

The good news is that storage solutions are becoming significantly cheaper, enabling the viability of solar-plus-storage projects that were previously unfeasible.

Another trend is the revival of utility-scale solar projects, which had slowed during the COVID-19 pandemic. With international institutions reengaging, we’re seeing exciting developments across Africa, including in countries not traditionally associated with large-scale solar.

How would you evaluate the progress of renewable energy in Africa?

While Africa has made progress, it’s not enough. When compared globally, the continent is still lagging. However, some regions like China and Southeast Asia are also growing at extraordinary rates, while Europe grew by only 4% last year.

Africa’s unique challenge is its massive electricity deficit compared to other regions, but that also presents significant opportunities. The positive trend we’re witnessing now could accelerate if risk factors are addressed effectively.

What are the risk factors that governments could mitigate to encourage solar energy growth?

Governments need to address the same recurring risks: political instability, lack of rule of law, and economic risks such as currency volatility. For example, in Nigeria, foreign exchange fluctuations and changes in fuel prices impact solar investments. These issues are not exclusive to solar—they affect all industries in Africa.

Despite these challenges, international companies are increasingly investing in Africa’s solar sector, which is a positive sign. Governments can enhance this by ensuring stable policies, promoting transparency, and providing incentives for renewable energy adoption.

Some argue that the high cost of solar energy compared to conventional electricity, including the poverty level of African Nations, makes it inaccessible to many Africans. Do you agree? 

Not at all. Solar electricity is now one of the most affordable sources of energy globally.

While hydropower can be cheaper in some areas, it is not universally available across Africa. Even in countries with significant hydro resources, the reliability of this energy source is under increasing pressure. For instance, in Zambia, climate change and prolonged drought have drastically reduced electricity generation. Despite having the infrastructure for hydroelectric power, the main dam recently operated at only 10% capacity, leaving the country struggling with energy shortages.

In contrast, solar and storage solutions are becoming more affordable and can be deployed rapidly. Africa, with its abundant sunlight, is perfectly positioned to capitalize on solar energy.

They’re very quick to install. And we are in an ideal location. On average, if you put a solar panel anywhere in Africa, that panel, at the same price that you could have in Europe or in the US, produces twice as much electricity.

So the electricity is half as cheap. And if you install that panel in a place like Namibia or Angola or Mauritania, then it’s three times cheaper. So we definitely have strength. We just need to take advantage of them.