Why now?
Higher cost of electricity
Eliminating fuel subsidies in major African economies like Kenya and Nigeria has skyrocketed the cost of conventional energy. Solar energy offers a cheaper and more sustainable alternative, with the cost of solar installations decreasing while conventional energy prices rise.
In 2023, large commercial and industrial (C&I) customers contributed nearly 48% of Kenya Power’s annual revenue despite making up only 1% of the customer base.
Source: Kenya Power & Lighting Co.
Lower cost of solar energy
The perception of solar energy has dramatically shifted in recent years. Once seen as a niche solution, solar power is widely recognized as a viable option for powering businesses. The declining costs of solar technologies and energy storage systems make solar a more attractive option for African businesses. The payback period for solar PV investments can be as short as 3-7 years, depending on local energy tariffs and incentives.
Increase in energy demand
With energy consumption expected to triple in the next decade, driven by rapid population growth and increasing per capita usage, the demand for reliable power in Africa is surging. East Africa, in particular, benefits from an average solar irradiation of 2,100-kilowatt hours per square meter annually, positioning it as an ideal region to meet this rising demand through solar energy.(IRENA and AfDB (2022).
Africa has
60%
of the world’s best solar resources
1%
of global installed solar PV capacity