South Africa’s Solar Industry Enters Accelerated Expansion Phase
South Africa’s solar industry is rapidly expanding, with current renewable energy capacity exceeding 12GW, accounting for 20% of the nation’s total installed capacity. In 2025, JUWI Renewable Energies will invest in new solar projects totaling 340MW (0.34GW) to serve mining, data center, and industrial giants, accelerating the country’s transition to clean energy. These projects are expected to reduce CO₂ emissions by 1 million tons annually, provide clean electricity to 200,000 households, and create over 2,000 jobs. Private-sector investments and policy reforms are driving South Africa’s energy transformation.
Key Drivers Behind South Africa’s Solar Growth
The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), launched over a decade ago, laid the foundation for utility-scale solar projects. Recent years have seen explosive growth in residential, commercial, and industrial (C&I) solar systems, fueled by:
- Corporate power purchase agreements (PPAs) and innovative financing models that lock in long-term low electricity costs;
- Integrated residential solar financing, such as bundling solar systems with home loans;
- Solar leasing programs to improve affordability for SMEs and households;
- Falling global costs of solar panels and energy storage;
- Escalating load-shedding driving adoption of distributed PV systems;
- Government removal of licensing requirements for large C&I solar projects, enabling electricity wheeling.
To date, rooftop solar installations for households and businesses exceed 6.1GW, complemented by 6GW of utility-scale renewable projects, bringing South Africa’s total solar capacity beyond 12GW. This expansion is reducing reliance on polluting coal while lowering energy costs for businesses and households.
JUWI’s Three Major Solar Projects for 2025
JUWI Renewable Energies plans to develop three private solar projects in 2025, totaling ZAR 6 billion (approximately $320 million) in investment and 340MW of new capacity:
- 120MW Solar Plant (Teraco Data Centres)
Powering South Africa’s largest data center operator via wheeling agreements. - 120MW Solar Plant (Sasol & Air Liquide)
Developed by TotalEnergies, Mulilo, and Reatile Group for the chemical and gas industries. - 100MW Solar Plant (Glencore Mine)
Supplying clean energy to a ferrochrome smelter, co-developed with Pele Green Energy.
Upon completion, these projects will:
- Generate 1 million MWh of clean electricity annually, enough for 200,000 households;
- Cut nearly 1 million tons of CO₂ emissions, advancing climate goals;
- Create over 2,000 jobs, boosting green economic growth.
JUWI also revealed it operates nine renewable projects across Africa with 574MW of capacity, delivering nearly 1 million MWh of clean energy yearly.
Policy Reforms and Industry Outlook
In 2025, South Africa enacted the Electricity Regulation Amendment Act and launched REIPPPP Bid Window 7, targeting 26GW of new renewables by 2030 (6GW annually for wind and solar). Rethabile Melamu, CEO of the South African Photovoltaic Industry Association (SAPVIA), stated: “Private investments are critical to raising renewable energy shares and cutting emissions. Coal still dominates, so projects like JUWI’s are vital for energy security and global competitiveness.”
Despite avoiding major load-shedding for 300 days, recent Eskom power rationing highlights grid fragility, underscoring the importance of independent power producers (IPPs) like JUWI in strengthening supply.
New Power Perspective
South Africa’s renewable sector is at a historic turning point, with private capital and policy reforms acting as dual engines for solar growth. JUWI’s projects exemplify how solar expansion alleviates energy shortages, lowers costs, and drives green industrialization. As global energy dynamics shift, South Africa’s solar industry is emerging as a benchmark for Africa’s energy revolution.
