JA Solar rolls out first panels manufactured in SA

From the newsletter

Major Chinese solar panel manufacturer JA Solar has started production of its high-efficiency photovoltaic modules in South Africa. The company partnered with ARTsolar, South Africa's first solar manufacturing company to produce such panels. This comes in the wake of South Africa looking to localise renewable energy tech manufacturing.

• South Africa's renewables market is set to grow rapidly, with manufacturing companies embracing renewables to retain market share. About 3,000 to 5,000 MW of renewables are projected to be installed annually until 2030.

• Growth in African renewables markets has persuaded an increasing number of companies to establish local manufacturing operations. Ethiopia and Morocco are among the countries where Chinese investors have already set up plants.

More details

• JA Solar and ARTsolar now have a production capacity of 340 MW after upgrades. The first batch of the manufactured modules was exclusively supplied to the 216 MW Hydra solar project, developed by TotalEnergies and constructed by Powerchina Huadong Engineering Corporation Limited (HDEC).

• South Africa's solar space remains one of the most active in Africa, adding gigawatts in annual installations. The country has an installed capacity of over 8,000 MW, almost half of Africa's total installations. Our Renewables Rising project database has tracked over 3,000 MW of solar and wind capacity and 300 MWh of battery energy storage under development since February 2025.

• The country's demand for solar has been propelled by the nation's severe energy crisis, which experiences frequent load shedding and annual price increases. Additionally, the government is providing support to the sector through the removal of licensing requirements for smaller projects, waiving registration fees and smart meter costs until March 2026 for residential customers.

• To tap into the growing local demand, the government is looking into localising the manufacturing of renewable energy technologies. Last year, it introduced a 10% import duty on solar panels to protect local manufacturing. This year, it is proposing a range of between 10% and 30% on components imported for use in renewable technology manufacturing.

• Currently, very few companies have established a significant manufacturing presence in the country, and their production capacity is way below the annual demand. Apart from ARTsolar, Seraphim has a 300 MW production capacity and is being funded by the Industrial Development Corporation (IDC) of South Africa. There is also a plan to establish the Smart Solar Panel Manufacturing Plant (SSPMP) targeting a production capacity of 300 MW.

• Going into local manufacturing for South Africa could prove to be competitive, even with China. Research shows that while it costs US¢16.3 for one watt of PV module assembly in China, it costs only marginally more in markets such as South Africa (US¢18). 

• However, the advantage of abundant raw materials could work well in lowering production costs. Moreover, the demand from upcoming projects and the government's requirement for all government-led initiatives to procure 40% of local content in their projects further strengthens the case for local manufacturing.

Our take

• African countries often lack the most advanced technology required for solar manufacturing and need to form strategic partnerships with established global players, such as those in China. South Africa has recognised this and is likely to lead to cost savings, accelerate technological transfer, and ultimately strengthen its local solar manufacturing sector.

• African countries need to have a regionalised PV strategy that will connect countries with key mineral exports to those with solar technological capabilities. This could result in economies of scale and make it cost-competitive with Chinese projects.

• Countries like Ethiopia, which are now manufacturing solar cells, should export these to other African markets. This allows other countries to specialise in panel assembly, promoting a regional solar value chain that reduces reliance on imports and boosts intra-African trade.