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In September 2024, China exported approximately 0.79GW of solar panels to the African market, a 9% decrease from 0.87GW in August but a notable 36% increase from 0.58GW in September 2023. In the third quarter of 2024, China’s total solar panel exports to Africa amounted to 2.74GW, which represents a 2% increase from 2.7GW in the second quarter and a 56% increase from 1.76GW in the third quarter of last year. From January to September 2024, the cumulative export volume to the African market reached 7.74GW, an 18% increase from 6.58GW in the same period last year.
South Africa continues to be the largest importer of Chinese solar panels in Africa. In September 2024, South Africa imported around 229MW of Chinese solar panels, a 37% decrease from 365MW in August, accounting for 29% of the total import volume in the African market. From January to September 2024, South Africa imported a total of 2.69GW of Chinese solar panels.
South Africa’s demand for solar panels has been impacted by several factors, including the introduction of a 10% tariff on imported solar panels at the end of June 2024. This tariff has led to increased project investment costs, which has dampened the pace of solar panel installations in the country. Since August, the volume of solar panel imports has gradually declined, reflecting the broader challenges facing the South African solar market.
The demand for solar panels in South Africa faces additional hurdles due to local grid congestion and insufficient infrastructure, which have hindered the efficient integration of solar power into the national energy system. If these issues are not addressed, the demand for solar panels in South Africa is expected to remain weak in the second half of 2024 and potentially into 2025.
While these challenges persist, the long-term outlook for solar panel demand in South Africa remains positive, given the country’s ongoing commitment to renewable energy development. The South African government continues to prioritize renewable energy initiatives, and with ongoing efforts to improve grid infrastructure, the market for solar panels may recover in the future.
Despite challenges in South Africa, the broader African market remains a key area of growth for solar panels. Several African countries are increasing their investments in renewable energy, with solar panels playing a central role in these initiatives. As energy access and infrastructure improvements continue to progress, the demand for solar panels across the continent is expected to grow, driven by the need for affordable, clean energy solutions.
China’s increasing exports of solar panels to Africa reflect this growing demand, and the African solar market is expected to continue expanding in the coming years. With favorable policies and ongoing international partnerships, the potential for solar energy systems to meet Africa’s energy needs remains significant.
