Solar energy is lighting up rooftops across Africa, from Ghana to Kenya and Nigeria. If you’ve noticed this trend, you might have also noticed the hefty price tag that comes with it and thought, "Why is it so expensive?" After all, solar is supposed to be the affordable answer to the power challenges across the continent, right?
Don’t worry, you’re not alone in asking this question. In this article, we’ll break it all down for you.
Let’s start with the burning question: why does solar seem out of reach for many African households and businesses? The short answer—without putting you to sleep—is that a mix of global factors, regional dynamics, and the technology itself all play a part.
Solar panels don’t grow on trees (though wouldn’t that be great?). They’re mostly imported from global manufacturing hubs. After the effects of the COVID-19 pandemic and ongoing geopolitical issues, supply chains have been disrupted, making it harder—and more expensive—to get those solar panels to your door 1. Beyond the bubble of clean energy, Africa is heavily dependent on imports from outside sources 2. In 2023, Morocco’s imports were valued at 52.3% of its GDP, while Sierra Leone’s were 67.3% 3.
If you've ever exchanged African currencies for dollars or euros, you know the feeling. Since solar equipment is priced in foreign currencies, the local currency's value plays a big role in how much you pay. Weakening currencies across many African countries mean solar gets more expensive with every market shift.
Solar power is all about long-term savings. But to enjoy those savings, you have to invest a significant amount of money upfront. Solar systems, which include panels, inverters, batteries, and other components, don’t come cheap. This can make the initial investment feel overwhelming.
Many African countries still impose import duties and taxes on solar equipment. Even though solar energy is a greener and more sustainable alternative, these additional costs can make it harder for the average household to afford the switch. This keeps solar just out of reach for many people who want to escape the clutches of unreliable power grids.
Good news—there are ways to bring down the cost of solar energy across the continent, even if it feels steep right now.
Instead of everyone investing in their own individual solar setup, why not share the load? Community solar projects allow groups of people to pool resources and invest in larger solar systems that can power multiple homes. This can significantly reduce the per-household cost of going solar.
Africa has the potential to become a hub for solar manufacturing. Encouraging the local production of solar components like panels, inverters, and batteries would cut down on import costs and create jobs. Think of it as a win-win—lower costs and economic growth.
Governments can play a key role in making solar more affordable. By reducing or eliminating import duties on solar components, they can help lower prices for consumers. Additionally, subsidies or tax breaks for solar installations can make it easier for the average household to switch to renewable energy.
Another innovative way to make solar more accessible is through energy-as-a-service models. In this setup, a company installs the solar system on your roof, and you pay for the electricity it generates, rather than paying for the system itself. This reduces the upfront cost and makes solar more attainable.
Here’s the silver lining: even though solar is expensive right now, prices are expected to drop in the future. Here’s why:
Just like with smartphones and other tech, solar technology is evolving fast. As solar panels become more efficient and easier to produce, their cost will continue to fall, lowering consumer prices.
As solar adoption grows across Africa, manufacturers will be able to produce solar components in larger quantities, reducing costs. It’s basic economics—more demand leads to larger production, which leads to lower prices. This will trickle down to the consumers
More companies are entering the solar market as demand grows, creating competition that naturally drives down prices. In the future, you'll have more options to choose from, giving you better deals on solar solutions.
Worldwide, there’s a growing push for renewable energy as countries work to combat climate change. International organizations and investors pour resources into making solar energy more accessible 5. African countries, as part of the global community, will benefit from these efforts, leading to lower prices over time.
Yes, solar energy is expensive right now, but that doesn’t mean it will always be this way. The high costs are a result of global supply chain issues, exchange rate fluctuations, and the nature of solar technology itself. However, with local manufacturing, government incentives, and innovative financing models, these costs can be brought down.
And don’t forget—prices will likely reduce as technology improves, economies of scale kick in, and competition heats up. So, while the cost of going solar might be steep today, the future is bright (pun intended). Solar power is still one of the best long-term investments you can make, and the sooner you jump in, the sooner you can start saving—and shining!