SA panel demand boosts local production potential

From the newsletter

German-based energy firm Juwi has inked an agreement with global manufacturer JA Solar to supply nearly 420,000 solar panels for two large-scale projects totalling 220 MW. If sourced locally, this collaboration may transform South Africa’s manufacturing landscape by boosting local production capacity and reducing reliance on imports.

• Across Africa, the Renewables Rising project database tracks over 14,000 MW of solar projects in different stages of development in 2025. These projects present immense opportunities for local manufacturers to supply panels.

• Besides South Africa, manufacturing has grown across the continent. Countries such as Ethiopia, Egypt and Nigeria received funding for solar manufacturing facilities in 2025.

More details

• This partnership builds on JA Solar’s collaboration with local solar manufacturer ART Solar last month to promote local production and economic development in South Africa as solar matures and demand increases.

• Juwi’s two large-scale projects, the 100 MW Sonvanger Solar Plant for Glencore and the 120 MW Paarde Valley PV2 project for Sasol and Air Liquide, are part of a broader  $336 million investment in solar PV.

• Local solar manufacturing in Africa remains in its infancy primarily due to high production costs, limited technological capacity, and fragmented supply chains. Many countries still rely heavily on imported components, which increases costs and project timelines.

• Scaling local solar panel production is critical to support South Africa’s ambitious 30,000 MW wind and solar target by 2030, especially as 11,000 MW of coal capacity is retired. Without increased local manufacturing, the country risks supply chain vulnerabilities and higher costs that could slow the energy transition.

• South Africa is endowed with minerals essential for solar panel manufacturing, including silicon, platinum group metals, and rare earth elements. These materials are critical for producing photovoltaic cells and other components. Other African countries are also mineral-rich: Egypt mines polysilicon, Nigeria has significant tin and lead deposits used in soldering, and Ethiopia holds rare earth minerals vital for electronics.

• However, private sector participation is crucial to scaling local manufacturing. Beyond Juwi, companies such as Pele Green Energy, Bboxx, and Daystar Power are integrating local content into their solar projects. International players like TotalEnergies and Scatec also emphasise local partnerships to meet regulatory requirements and improve project economics.

Our take

• Africa's solar manufacturing is finally cracking its shell. The scramble for local production is on, and those who act now will define the continent's clean energy future.

• Yes, high costs and fragmented supply chains plague Africa's solar manufacturing, but don't let that fool you. Strategic partnerships like Juwi's with JA Solar are dismantling these barriers piece by painful piece.

• The days of total reliance on imports are numbered as countries like South Africa, Ethiopia, Egypt, and Nigeria double down on domestic production, transforming resource potential into tangible energy security. This is national liberation.