Africa’s solar energy capacity saw unprecedented growth in 2025, with installations surging to a record 4.5 gigawatts across the continent. This expansion marks a meaningful step towards increased energy access and decarbonization efforts, driven by falling technology costs and a growing demand for reliable power. The latest data from the Global Solar Council highlights not only the potential of the African solar market but also the critical need to address financing challenges to sustain this momentum. The report details a shift toward decentralized solutions alongside large-scale projects, demonstrating a dynamic and evolving energy landscape.
Africa experienced a record year for solar energy development in 2025, with at least 4.5 gigawatts (GW) of new photovoltaic capacity installed across the continent, according to the latest data from the Global Solar Council (GSC). This represents a 54% annual increase compared to the 2.9 GW added in 2024 and surpasses the previous record of nearly 3.1 GW deployed in 2023.
The surge in installations is driven by improving project economics, enabling rapid growth in both decentralized solar solutions and large-scale, grid-connected facilities, the organization said.
Shift Towards Decentralized Solar Power
The expansion of solar power in Africa continued to be led by established markets with relatively structured regulatory frameworks. South Africa spearheaded the growth, connecting 1.6 GW to the grid, up from 1.1 GW the previous year, and solidifying its position as a leader in decentralized solar. Nigeria followed with 803 MW, while Egypt added 500 MW and Algeria 400 MW. Together, these four countries accounted for over 70% of the new capacity.
Beyond these key players, several other nations made significant contributions to the overall expansion. Morocco installed 204 MW, Zambia added 139 MW, Tunisia 120 MW, Botswana 120 MW, Ghana 92.3 MW, and Chad 86 MW. Historically dominated by large-scale, grid-connected solar projects, the African market is now witnessing a rapid shift towards decentralized, on-site generation. Rooftop photovoltaic systems, commercial and industrial installations, mini-grids, and off-grid solutions are now growing at a comparable pace to large-scale power plants.
This trend is fueled by several converging factors, including declining module costs, improved battery storage performance, and the emergence of local industrial ecosystems, particularly in South Africa and Nigeria. Frequent power outages and rising tariffs are also prompting households and businesses to seek more reliable and affordable alternatives in many countries.
The report indicates this shift is reflected in trade data. Over the twelve months leading up to mid-2025, Africa imported a record 15 GW of solar panels. While large-scale projects represented 56% of installed capacity in 2025, the GSC notes that the share of distributed solar (44%) is likely underestimated due to the challenges of tracking smaller installations.
Positive Outlook for Continued Growth
The GSC forecasts continued strong growth for the African solar photovoltaic market. In a median scenario, the continent could achieve a compound annual growth rate (CAGR) of 21% through 2029, representing the cumulative addition of approximately 31.5 GW of new solar capacity over the next four years. A more optimistic, high-growth scenario suggests Africa could see its cumulative installations reach nearly 63 GW between 2026 and 2029, averaging around 15 GW per year.
“This rate equates to a CAGR of 44% and illustrates the considerable potential Africa could unlock if robust regulatory frameworks, rapid project execution, and sustained investor confidence are maintained. While this scenario represents an ambitious goal, it provides insight into what the African solar sector could achieve, while highlighting investor appetite for this market and the continent’s deployment capacity,” the report stated.
Financing Remains a Key Challenge
Despite the positive growth trajectory, the GSC identifies access to financing as a significant obstacle to further development. Even as technology costs continue to fall and solar coupled with storage becomes one of the most cost-effective energy solutions, access to capital remains expensive, fragmented, and ill-suited to decentralized markets. The increasing adoption of solar power in Africa underscores the continent’s growing commitment to renewable energy sources and its potential to address energy access challenges.
“The continent is undergoing a dual energy transition: an expansion driven by states, focused on grids and large solar plants, largely financed by public funds and development institutions, and a private transition driven by households and businesses, investing heavily in decentralized solar solutions and storage. However, climate and green finance mechanisms continue to favor sovereign infrastructure, leaving essential circuits for distributed solar underfunded: consumer credit, SME financing, and trade instruments,” the report explained.
Currently, approximately 82% of green financing in Africa comes from public sources and development partners, even though their contribution to energy projects has declined by a third over the last decade. Conversely, private investment in clean energy has nearly tripled, rising from USD 17 billion (approximately EUR 14.4 billion) in 2019 to nearly USD 40 billion (approximately EUR 33.9 billion) in 2024. However, the cost of capital remains three to five times higher than in developed markets, hindering the realization of many economically viable projects.
To accelerate growth, the GSC recommends strengthening guarantees, developing blended finance, promoting project aggregation, and deploying portfolio-based instruments. These measures are essential to effectively channel capital towards solar and storage for households, commercial enterprises, and the industrial sector. “Governments and development partners should collaborate with credit agencies to better assess sector-specific risks and establish stable and transparent regulations. Clear rules regarding licensing, tariffs, and contracts will reduce risk for investors, lower the cost of financing, and make projects more easily fundable,” the authors recommend.
