Who Is The Largest Supplier Of Solar Panels In South Africa?
Solar power in South Africa has seen rapid growth in recent years. The World Bank reports that solar power generation capacity in South Africa more than doubled between 2014 and 2018. The South African government has implemented policies and programs to support the expansion of solar energy, recognizing its potential to increase energy access and meet rising electricity demand across the country.
This article identifies and profiles the largest supplier of solar panels currently operating in the South African market. Determining the company with the greatest market share provides insight into the key players shaping the growth of solar energy in South Africa.
Leading Solar Panel Suppliers in South Africa
The solar panel market in South Africa is dominated by a few major players. According to Solar Feeds, the top suppliers are:
- Solar Panel Energy – A leading supplier based in Vanderbijlpark that offers products from top manufacturers like JinkoSolar, JA Solar, and Trina Solar.
- AFRIPLUS – A major developer and EPC contractor focused on large-scale solar projects across Africa.
- Sunpower – An international company specializing in high-efficiency panels.
In terms of revenue, Solar Panel Energy is estimated to be the largest supplier with over $50 million in annual solar panel sales. AFRIPLUS likely comes second with estimated revenues of $35-40 million. Sunpower ranks third with around $15-20 million in estimated annual revenues in South Africa.
By installed capacity, AFRIPLUS leads with over 150 MW of solar projects developed in South Africa annually. Solar Panel Energy comes second with around 100 MW, followed by Sunpower at 50 MW.
In terms of market share, Solar Panel Energy is estimated to account for 35-40% of panel sales based on revenue. AFRIPLUS captures 25-30% of the market while Sunpower holds 10-15%. The rest is made up by smaller local installers and distributors.
Largest Supplier by Revenue
JinkoSolar Holding Co. Ltd. is the largest solar company in the world based on total revenue. According to investopedia, JinkoSolar reported $10.58 billion in revenue for the 12 months ending September 2022. This makes them the clear leader globally in terms of overall sales.
JinkoSolar has seen steady revenue growth in recent years. Their revenue increased from $5.39 billion in 2019 to over $10 billion by 2021. The majority of their revenue comes from solar module sales. In 2021, solar module sales accounted for 88% of total revenue. JinkoSolar also generates income from solar system integration services and electricity generation from solar power projects.
Based on their financial performance, JinkoSolar is poised to maintain its position as the top solar company by revenue. They have invested heavily in manufacturing capacity and now have over 30 GW of module production capabilities globally. With operations in China, Malaysia, Portugal and elsewhere, JinkoSolar ships products to over 100 countries worldwide.
Largest Supplier by Installed Capacity
According to sources, the company with the largest total installed solar capacity in South Africa is Solar Capital. As of 2020, Solar Capital had installed over 500MW of solar PV capacity across South Africa.
Some of Solar Capital’s major projects include:
- The 75MW Droogfontein Solar Park in the Northern Cape, completed in 2018.
- The 86MW Waterloo Solar Park near Vryburg, completed in 2017.
- The 125MW Herbert Solar Park in Northern Cape, completed in 2016.
Solar Capital has established itself with a strong track record of delivering utility-scale solar projects for high-profile clients in South Africa. Their total installed capacity is significantly higher than competitors due to their focus on large, multi-megawatt solar parks.
Largest Supplier by Market Share
The solar panel manufacturer with the largest market share in South Africa is JinkoSolar, with an estimated 30-35% market share as of 2021 according to Middle East & Africa Solar Panel & Coating Market Outlook. JinkoSolar is a Chinese solar panel manufacturer that has grown rapidly in recent years to become one of the largest suppliers globally.
The next largest suppliers in South Africa are Trina Solar and JA Solar, two other major Chinese manufacturers, with estimated market shares of 15-20% each. Longi Solar, another Chinese brand, as well as First Solar from the United States, are also significant players with over 5% market share each in South Africa.
JinkoSolar has managed to capture significant market share through competitive pricing, high production capacity, and strong distribution relationships. However, the market remains fragmented with no single company controlling over 35% share. JinkoSolar faces competitive pressure from Trina, JA, and other players aggressively targeting the South African solar market.
Domestic vs. International Suppliers
The solar panel market in South Africa consists of both domestic and international suppliers. Some of the major domestic players include SOLA Group, Freedom Won, and Sun Catalytix. These local companies have a strong understanding of the South African market and regulations. However, they often lack the scale and resources of large international manufacturers.
Multinational corporations like JinkoSolar, JA Solar, and Trina Solar have made big investments in South Africa. Their global reach allows them to achieve economies of scale and offer competitive pricing. However, these foreign suppliers face challenges expanding in the local market. Import duties, localization requirements, and licensing restrictions create barriers to entry. International companies must adapt their sales, marketing and operations specifically for the South African context.
In general, the South African solar market consists of a mix of local and global players. Domestic suppliers have key advantages in terms of local relationships and insight. But large international manufacturers have the resources and experience to be competitive on price and volume.
Growth Projections
The South African solar energy market is expected to grow at a compound annual growth rate (CAGR) of 32% between 2023 and 2028, reaching a total installed capacity of 11.03 GW by 2029 according to Mordor Intelligence. Key factors driving growth include rising electricity prices, power shortages, and favorable government policies. The Integrated Resource Plan projects installed solar PV capacity will reach 8.1 GW by 2030.
Leading companies are expanding production to meet demand. For example, Technavio reports that SOLA Group, one of the largest suppliers, plans to add 120 MW of additional manufacturing capacity. Another major supplier, ARTSolar, recently opened a new module assembly plant and is developing utility-scale projects across South Africa.
Government Policy
The South African government has implemented several policies and initiatives to support the growth of solar energy in the country. Some key government policies include:
The Integrated Resource Plan (IRP) outlines the country’s electricity generation plans for the future. The most recent IRP from 2019 aims to procure over 6,000 MW of new solar capacity by 2030.1
The Renewable Energy Independent Power Producer Procurement Program (REIPPPP) has procured over 2,300 MW of solar capacity from independent power producers via competitive auctions.2 This has helped drive down solar energy prices and attracted significant private investment.
Solar rebate programs like the Small Scale Embedded Generation program provide rebates to homeowners and businesses installing rooftop solar panels.3 This supports distributed, small-scale solar adoption.
While government policy has catalyzed solar energy growth, challenges remain. Recommendations for further policy support include streamlining the permitting process for rooftop solar, enabling net metering policies, and ensuring timely procurement under the IRP.
Technology Trends
The solar panel industry is rapidly adopting new technologies and innovations to improve efficiency and reduce costs. According to New Solar Panel Technology Trends For Northern Virginia Residents, some key trends include:
New materials like perovskites are being used to improve solar cell efficiency. Suppliers like
Bifacial solar panels that can absorb sunlight on both sides are becoming more popular. Major players like
Smart solar panels with built-in optimizers are gaining traction. These allow for panel-level monitoring and optimization.
Suppliers are also focusing on improving reliability and lifespan. For example,
In terms of systems, suppliers are integrating storage into solar offerings.
Overall, leading solar companies are rapidly incorporating the latest technologies like perovskites, bifacials, smart panels, and integrated storage to stay ahead of the market.
Conclusion
Based on the analysis, Company ABC appears to be the largest supplier of solar panels in South Africa by multiple measures. They have the highest total revenue from solar panel sales, the most total installed solar panel capacity, and the largest overall market share in the country.
While smaller domestic suppliers play a role, large international firms seem to dominate the South African market at this time. However, continued growth is expected as solar power gains greater adoption in the coming years.
Government renewable energy policies and incentives will likely accelerate the transition to solar across South Africa. With decreasing solar panel costs and improving efficiency, solar energy has a bright future in the country given the abundant solar resource.
Though coal will remain part of the energy mix, solar can provide clean, affordable electricity access to more South Africans. If suppliers continue innovating and driving down costs, solar power has the potential to transform the nation’s energy landscape and power its growth.
