South Africa Renewable Energy Market Overview, 2030

South Africa stands as a critical player in the global shift toward renewable energy, driving sustainability efforts and combating climate change. Positioned as a leader in Sub-Saharan Africa, South Africa’s renewable energy journey has gained momentum, contributing significantly to the broader MEA region's clean energy capacity. Historically, the country has been heavily reliant on coal, which accounts for over 80% of its energy generation. However, initiatives like the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) have marked a turning point, fostering the growth of wind, solar and hydroelectric power projects. These efforts reflect a broader commitment to transitioning toward a low-carbon economy and addressing the nation’s pressing energy challenges, including frequent power outages and the need for diversified energy sources. Key drivers of South Africa’s renewable energy market include a growing domestic demand for reliable energy, advancements in renewable technologies, and the decreasing costs of wind and solar power solutions. Additionally, international commitments to reduce carbon emissions, such as those under the Paris Agreement, have spurred policy reforms and investments in green energy. Despite this progress, challenges remain, including the country’s persistent reliance on coal, slow regulatory processes, and limited infrastructure to support large-scale renewable projects. Financing constraints and grid connectivity issues also hinder the scalability of renewable energy initiatives. Nevertheless, South Africa’s renewable energy market holds immense potential, with its abundant natural resources and strategic geographic location providing a strong foundation for future growth.

According to the research report ""South Africa Renewable Energy Market Overview, 2030,"" published by Bonafide Research, the South Africa renewable energy market is anticipated to grow at more than 6.59% CAGR from 2025 to 2030. This growth is driven by increasing electricity demand, government initiatives like the Renewable Energy Independent Power Producer Procurement Program (REIPPPP), and the country's focus on reducing carbon emissions. Solar and wind energy dominate the renewable sector, with South Africa's natural resources offering significant potential for expansion. The government’s Integrated Resource Plan (IRP) aims to add 20,000 MW of renewable capacity by 2030, positioning the country as a leader in renewable energy within Sub-Saharan Africa. However, challenges such as infrastructure limitations, the ongoing reliance on coal, and Eskom's financial struggles hinder the rapid adoption of renewable energy. Despite these barriers, foreign investments from companies in Europe and Asia are boosting the sector, and growing public-private partnerships are helping accelerate development. The market is expected to grow steadily, though it still lags behind European countries in terms of integration and capacity.

The renewable energy market in South Africa is diverse, with key segments including solar power, wind energy, bioenergy, and emerging technologies like green hydrogen. Solar power continues to be the leading segment, capitalizing on South Africa’s high solar irradiance, which makes it ideal for large-scale photovoltaic (PV) installations. The government’s Renewable Energy Independent Power Producer Procurement Program (REIPPPP) has played a pivotal role in driving the expansion of solar energy, both in residential and industrial applications. Wind energy is also an important contributor, particularly in coastal regions where consistent wind patterns support the development of both onshore and offshore wind farms. This growth is driven by the need to diversify the energy mix and enhance energy security. Bioenergy is gaining ground as an alternative energy source, especially through the use of agricultural and industrial waste to produce energy, aligning with South Africa’s sustainability and circular economy objectives. In addition, green hydrogen is emerging as a promising technology, with the potential to decarbonize hard-to-electrify industries such as heavy manufacturing and transportation. As South Africa works to reduce its carbon footprint and meet its renewable energy targets, these segments will be essential in driving the country’s transition to a more sustainable energy future. The combined growth of solar, wind, bioenergy, and green hydrogen will play a key role in helping South Africa meet its energy security and sustainability goals by 2030.

The adoption of renewable energy in South Africa is seeing significant growth across various end-user segments, particularly in the industrial, commercial, and residential sectors. In the industrial sector, renewable energy is being increasingly recognized as a solution to reduce operational costs and meet sustainability goals. As energy-intensive industries such as mining and manufacturing look for ways to lower their carbon footprints, solar and wind energy are becoming key components of their energy strategies. Renewable energy is also helping these industries to improve energy security and reduce reliance on traditional power sources, which have become less reliable in recent years. In the commercial sector, businesses are increasingly integrating renewable energy systems to cut energy costs and enhance their sustainability credentials. Retailers, hospitality businesses, and office buildings are turning to solar energy, primarily for cost savings, but also to align with the growing consumer demand for environmentally conscious operations. This shift is not only driven by cost considerations but also by the need for more resilient energy solutions, especially in light of frequent power outages. The residential sector is seeing rapid growth in the use of renewable energy, with homeowners increasingly opting for solar power as a means to lower electricity bills and reduce their dependence on the national grid. As electricity prices rise and the national grid faces challenges, rooftop solar installations are becoming an attractive option for South African households. This trend is fueled by a growing awareness of the environmental and financial benefits of renewable energy, as well as by government incentives and lower installation costs. Renewable energy solutions are becoming a vital part of the South African energy landscape, with the potential to drive further growth and innovation across all sectors.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Renewable Energy Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Hydropower
• Wind Power
• Solar Energy
• Bioenergy
• Geothermal
• Others

By End-User
• Industrial
• Residential
• Commercial

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.