Cheap Chinese Solar Reshapes South Africa’s Energy and Economy

Chinese-made solar panels and batteries have fallen in price so sharply that businesses and households across South Africa are installing their own systems, cutting electricity bills and reducing reliance on the state utility. The shift is visible from suburban Cape Town to factories, shopping malls, gold mines and clinics.

Dentists, wineries and other businesses report fewer disruptions and much lower bills after adding solar plus batteries. Solar has grown rapidly from almost nothing in 2019 to roughly 10 percent of South Africa’s installed generating capacity. In the past five years alone South Africans installed more than seven gigawatts of private solar out of a total roughly 55 gigawatts.

The expansion is squeezing Eskom, the troubled state utility. Each kilowatt produced by private systems hits Eskom’s revenues, helping create a cycle of higher prices and more rooftop adoption. Eskom has relaxed licensing rules, allowed people to sell power to the grid and introduced a fixed connection charge.

It is also planning large solar arrays on shuttered coal sites and aims to shift toward cleaner sources by 2040. China has been a key driver. Chinese solar exports to Africa rose about 50 percent in the first ten months of 2025, with South Africa the largest single destination.

Key Topics

World, United States, South Africa, Solar, China, Eskom, Renewables