At AM Power we are dedicated to empowering Africa through sustainable energy solutions.
Explore our blog for expert insights, industry trends, and practical tips on making the switch to solar.
Did you know going solar can increase your business value?
In today’s competitive market, African businesses are constantly looking for ways to cut costs, improve efficiency, and gain an edge. One powerful yet often overlooked solution? Solar power. The African continent receives 60% of the world’s solar energy (UN), yet businesses continue to face rising electricity costs and unstable grid power.
Chart showing global solar potential, by Statista
Cost Benefit’s
With electricity prices increasing annually, many businesses are forced to rely on costly fuel generators. Solar energy dramatically reduces electricity bills, providing long-term savings and freeing up resources for business growth. South Africa’s electricity prices increased by 18% in 2023 and a further 13% in 2024, with a new 12.6% hike approved for 2025 (IEA, 2025). With prices continuing to rise, switching to solar isn’t just an environmental choice—it’s a smart business decision.
Grid independence and operational efficiency
Power outages disrupt operations, especially for businesses relying on refrigeration, digital services, or machinery. Solar, paired with battery storage, ensures uninterrupted power, keeping your business running even during blackouts.
In countries like Nigeria, businesses relying on backup generators face operational costs up to 40% higher than grid electricity, making energy reliability a major financial concern (IEA, 2025). Frequent outages not only increase expenses but also limit productivity and competitiveness. To combat this, rural Kenya and Nigeria have effectively used solar mini-grids to boost business productivity and local economies(arxiv.org).
By investing in solar, businesses can avoid expensive, unreliable energy alternatives, stabilize their power supply, and protect themselves from fluctuating electricity prices.
Tax Incentives and reputation boost
Many African governments offer tax exemptions, incentives, and subsidies for solar adoption. In Kenya, solar equipment is tax-exempt, while countries like South Africa and Madagascar provide corporate tax reductions for renewable projects (CleanEnergy4Africa).
Beyond savings, going solar boosts your brand’s reputation. Today’s consumers and investors prefer businesses that are sustainable and forward-thinking—giving you a competitive advantage.
Curious About Solar for Your Business?
For businesses in Africa, solar power is more than an energy solution—it’s a strategic investment. The financial, operational, and reputational benefits make it a game-changer.
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Electricity trends 2025: What to look for Globally, in Africa and Kenya
In 2025 electricity demand is predicted to grow by 4% (energycapitalpower.com). Traditional power sources however are struggling to keep up with demand due to a variety of pressures. As a result both globally and regionally we are seeing trends such as price hikes, and a shift towards alternative power sources. The question then becomes which alternative is best for your business?
In 2025 electricity demand is predicted to grow by 4% (1). Traditional power sources however are struggling to keep up with demand due to a variety of pressures. As a result both globally and regionally we are seeing trends such as price hikes, and a shift towards alternative power sources.
Global Electricity Trends
In the past 5 years alone, the global energy price index saw notable increases in prices, reflecting broader economic pressures (2) such as inflation, supply chain disruptions, and increasing fuel costs.
Europe experienced some of the steepest hikes, particularly during the 2022 energy crisis, with household electricity prices in the EU rising from €22.0 per 100 kWh in early 2021 to €25.3 in 2022 (3). Emerging markets, including Sub-Saharan Africa, faced similar trends. As energy prices increase it disproportionately impacts low-income households, with their energy budgets growing from 7.8% in 2020 to 12% in 2022 (4). These rising costs and the challenges they bring emphasize the need for businesses to consider alternative energy solutions like solar.
Global electricity generation is rapidly shifting towards renewables, with solar power at the forefront. Renewables reached 30% of global electricity generation in 2023, driven by strong growth in solar and wind. Solar increased by 23% globally in 2023, contributing a record 5.5% to global electricity (5). Rising global electricity prices, driven by inflation and growing demand, prompt businesses worldwide to explore cost-effective energy alternatives like solar.
Energy Trends in Africa
Over the past five years, electricity costs across Sub-Saharan Africa have risen by an average of 15%, driven by infrastructure challenges and a reliance on imported fuels. Despite rising costs, there's still a significant gap between the continent's energy demands and supply despite its rich renewable energy resources. While Africa holds 60% of the world’s best solar resources, it contributes only 1% of installed solar capacity (6).
However, there is an ongoing renewable energy revolution on the continent with countries like Kenya and South Africa at the forefront. As countries increase their use of renewable energy to fill the gap, solar power’s affordability and reliability stands out, making it a critical component in Africa’s energy future
Kenyan Trends
Kenya’s electricity market exemplifies both the challenges and opportunities of the continent’s energy landscape. Between 2019 and 2024, average electricity tariffs increased by 39%, with small commercial customers (SC1 and SC2) seeing average hikes of 83%. Large commercial and industrial (C&I) customers, who consume 53.87% of Kenya’s electricity, experienced tariff increases of 18.5% over the same period. These rising costs have positioned solar energy as a practical and sustainable solution for Kenyan businesses, enabling them to offset operational expenses and achieve greater energy independence (7).
FIgure1. Electricity Tariffs in Kenya for Commercial Segment (2019-2024). Source EPRA
Why You Need Solar Today
As electricity prices rise and energy reliability becomes a pressing concern, businesses face hard decisions about their energy future. Solar power is no longer just an alternative; it’s the solution. With recent advancements, solar installations offer clear financial benefits—lowering energy bills by reducing dependence on the grid while providing stability in an era of unpredictable costs. This is especially crucial for Kenyan businesses, where average tariffs have jumped by nearly 40% in five years.
But solar is more than just a cost-saving tool; it’s a statement of resilience, innovation, and a commitment to sustainability—qualities customers and partners increasingly value. Whether it's a small enterprise or a large industrial operation, integrating solar shows forward-thinking leadership that resonates in today’s economy. Where energy decisions are business decisions, choosing solar is choosing growth, reliability, and impact. The question is no longer if solar energy is worth it but when you’ll take the leap!