Africa leads growth in solar energy as demand spreads beyond traditional markets, report says

Africa Emerges as World’s Fastest-Growing Solar Market, Defying Global Slowdown

Africa has become the world’s fastest-growing solar market, expanding by 17% in 2025 despite a global slowdown in renewable energy growth, according to a report released last month by the Africa Solar Industry Association.

The continent’s rapid solar adoption stands in stark contrast to the global trend, where solar power capacity grew by 23% in 2025 to 618 gigawatts (GW) – a significant deceleration from the 44% growth seen in 2024.

Chinese manufacturers have played a pivotal role in Africa’s green energy transformation, flooding the market with affordable solar panels and battery technology. “Chinese companies are the main drivers in Africa’s green transition,” said Cynthia Angweya-Muhati, acting CEO of the Kenya Renewable Energy Association. “They are aggressively investing in and building robust supply chains in Africa’s green energy ecosystem.”

The surge represents a significant shift in Africa’s energy landscape, though challenges remain in implementation. While nearly 64 gigawatts peak (GWp) of solar equipment has been shipped to the continent since 2017, Africa has only 23.4 GWp of working solar capacity currently operational. A gigawatt peak represents 1 billion watts of maximum power output under ideal conditions.

John Van Zuylen, CEO of the Africa Solar Industry Association, attributes the growth to evolving policy environments across the continent. “Africa’s growth is driven by changing policies and enabling conditions in a number of countries,” he said during the recent Inter Solar Africa summit in Nairobi. “Solar energy has moved beyond a handful of early adopters to become a broader continental priority. What we are seeing is not temporary. It is policies aligning with market dynamics.”

The geographic distribution of solar adoption is changing rapidly. While South Africa has historically dominated the continent’s solar market – once accounting for approximately half of all panel imports – its share has now fallen below one-third as demand surges elsewhere. Last year, 20 African nations set new annual records for solar imports, with 25 countries importing at least 100 megawatts of capacity.

Nigeria has overtaken Egypt as Africa’s second-largest solar importer, with businesses and households increasingly turning to solar energy and battery storage as affordable alternatives to diesel generators and unreliable grid power. Algeria saw a remarkable 30-fold year-on-year increase in solar imports, while countries like Zambia and Botswana also experienced significant growth.

The report highlights that at least 23 African countries – including South Africa, Tunisia, Kenya, Chad, and the Central African Republic – now generate over 5% of their electricity from solar energy.

A key driver of this adoption has been the falling costs of both solar panels and batteries, primarily from China. Battery storage costs in Africa decreased to $112 per kilowatt-hour in 2025 from an average of $144 per kilowatt-hour in 2023, as technological improvements have made storage systems more flexible and durable.

“This ever-decreasing price of storage has game-changing implications for Africa, which has a dire need for stable and baseload power,” Van Zuylen noted.

Policy changes have also accelerated the transition. In Nigeria, the gradual removal of diesel subsidies over the past two years has made traditional power sources increasingly expensive, driving businesses and households toward solar alternatives. The Nigerian government announced plans in September for a 1 GW solar panel factory – set to be the largest in West Africa. Similar manufacturing facilities are under construction in Egypt, South Africa, and Ethiopia.

As African nations build domestic manufacturing capacity, the industry is looking to China for technology transfer to reduce dependence on imported equipment. The solar boom is creating jobs beyond manufacturing, with Van Zuylen emphasizing that “the solar jobs boom is occurring in services including installation, maintenance, distribution and financing, where thousands of small and medium enterprises are emerging to meet rising demand.”

Despite this progress, policy uncertainty remains a significant challenge across many African markets. Unlike regions such as the Middle East, where governments publish clear long-term energy roadmaps, solar firms operating in Africa cite unpredictable tax regimes, shifting import duties, and unclear energy plans as factors that undermine investor confidence.

“The problem is not the opportunity. It’s visibility,” said Amos Wemanya, senior analyst on renewable energy at Powershift Africa. “If a government announces a plan, companies need to trust that it will remain in place.”