South Africa's solar industry is moving towards a phase of market-led growth, says Sim Khuloos of the South African Photovoltaic Industry Association (SAPVIA) The challenge for the coming year is to move forward with grid modernization and expansion.
As the South African solar photovoltaic industry enters 2026, the sector has moved from the reactive “crisis-mode” installations of previous years to a phase of sophisticated, market-led development.
Following growth in 2023 and a recovery in 2024, the industry has demonstrated resilience, with installed capacity in South Africa now exceeding 10.2 GW. This progress firmly establishes South Africa as the continental leader for installed capacity and secures its place among the top 20 solar PV markets globally.
However, to maintain this momentum and ensure that the benefits of the transition are felt across all sectors of society, our focus for 2026 must be on execution, grid expansion and policy coherence.
The 2026 energy landscape is set to be defined by the commercial operation of utility-scale projects. Some of the capacity purchased under the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) will be converted from generation to active grid contribution, marking an important milestone for the national procurement programme.
Between the end of 2024 and the end of 2025, Bidding Window 7 awarded a total of 3,940 MW of solar PV capacity, an important milestone for the solar PV industry. Notably, the window was defined exclusively by solar successes, as grid constraints in traditional resource areas limited diversification to other renewable energy technologies.
Several major utility-scale projects are expected to reach financial closing, begin construction or enter commercial operation this year. These developments in the Free State, Northern Cape, Limpopo and Mpumalanga include:
- Scatec's Kroonstad PV Cluster: in the Free State, which will contribute 846 MW across three co-located projects: Oslagate Solar 2, Oslagate Solar 3, and Leeuwspruit Solar.
- red rocket We continue to strengthen our market-leading position with a significant 1,040 MW portfolio including the Dwalboom 3 project (180 MW) in Limpopo and the Virginia 4 (210 MW) and Springhaus (410 MW combined) parks in the Free State, as well as Rondebosch (240 MW) in Mpumalanga.
- engineer The year has started strong with the 75 MW Grootspruit project in the Free State reaching full commercial operation in February 2026. Additionally, construction on the 240 MW Corona PV project located in Virginia in the Free State is expected to begin later this year.
- edf renewables'The hybrid Avondale solar PV site (115 MW solar + 30 MW battery) in the Northern Cape is scheduled for full commercial operation this year, providing dispatchable renewable energy that brings much-needed stability to the grid.
While the project pipeline is strong, the only priority for 2026 remains grid modernization and expansion. The sector currently faces a paradox where industry is ready to build and capital is available, but access to the grid is limited. We cannot accelerate change if we cannot connect the new generation to the points of demand.
The anticipated launch of the South African Wholesale Electricity Market (SAWEM) in April 2026 represents an important moment for energy liberalisation. By transitioning to an open multi-player market, SAWEM can unlock the private investment needed to modernize our national grid system. Without a stable regulatory framework, we risk repeating the industrial setbacks of the past, notably the loss of ZAR 1.69 billion ($105.5 million) in manufacturing investment and the loss of jobs across the solar value chain due to inconsistent local content enforcement. To make SAWEM bankable, the rules of engagement must be stringent.
A key component of SAPVIA's mission is to ensure that the energy transition is translated into tangible local industrial value. While South Africa has established manufacturing excellence in balance-of-plant (BOP) components such as mounting and tracker systems, we believe the strategic priority should be to grow these labour-intensive capabilities into competitive advantages for both domestic and export markets. By specializing in these high-growth sectors, South Africa can secure its place in the global supply chain while practically abandoning capital-intensive manufacturing of upstream components such as silicon cells and ingots.
The hybrid era has arrived, with almost half of South Africa's 220 GW renewable energy project pipeline now integrated with battery energy storage systems (BESS), according to the latest South Africa Renewable Energy Grid and Survey (SAREGS) data. BESS addresses the problem of intermittency of solar power and provides the flexibility needed for a stable grid. As electricity costs continue to rise, SAPVIA expects a surge in the residential, commercial and industrial (C&I) market segments, where storage integration allows consumers to maximize their own consumption and achieve greater energy independence.
Finally, universal energy access is no longer a peripheral goal; This is truly the cornerstone of a just energy transition. While solar growth has successfully de-risked the middle-class residential and C&I sectors, 2026 should be the year we start closing the energy poverty gap. SAPVIA is advocating integrated models that bring low-cost renewable energy to poor households and low-cost housing schemes, ensuring that the 'solar dividend' is shared equally across all socio-economic levels.
To close the energy access gap, South Africa must adapt proven global standards in community-driven solar schemes, rent-to-own systems and microgrids to our unique local landscape. Transforming these from pilots to scalable solutions requires a three-pronged approach: strong program design that protects municipal revenues, access to concessional de-risking finance, and a standardized government framework for municipal small-scale embedded generation (SSEG) integration. 2026 should be the year we move from 'exclusive' solar energy to 'inclusive' energy security.
In short, South Africa's solar PV is moving in the right direction, supported by a policy framework conducive to growth. The challenge for the coming year is implementation. By focusing on grid modernization and expansion, strengthening local manufacturing and assembly, and ensuring equitable access to clean energy, we can position South Africa as a global leader in the renewable energy sector.
Sim Khuluse is the Technical and Policy Manager for SAPVIA, the industry association for the solar PV sector in South Africa.
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the views of pv magazine.
This content is protected by copyright and may not be reused. If you would like to collaborate with us and reuse some of our content, please contact: editors@pv-magazine.com.