Below we’ll take an in-depth look at solar energy in sub-Saharan Africa to formulate observations regarding its future market potential.

Current State of Solar Energy in Sub-Saharan Africa

Currently, sub-Saharan Africa plays host to a few different renewable electricity technologies, all of which have their own rate of usage growth.

Pico Devices

Considered the smallest solar electricity solution, Pico devices are small solar cells that offer solar power to a single light or charging port. They initially gained widespread usage in 2010, and by 2017 had boasted upwards of six million units sold.

Pico solar solutions were initially financed via governments, impact investors, or donors, but are now mostly marketed commercially. One thing to note about Pico solar devices is that their main function is to provide minimum levels of electricity to those in lower socioeconomic classes, including those living in poverty and those without defined housing.

Solar Home Systems

Solar Home Systems (SHSs) are complete solar electricity setups featuring solar panels, batteries, and charge controllers. SHSs have varying capacities, with some of the most basic units powering as little as a few lights or small electronics such as fans or phone chargers.

Larger or more complex SHS units can power lighting and small appliances. Being that they offer varying levels of usage capacity, they can accommodate economic conditions in both rural areas and periurban areas, as shown by a 2018 study conducted by the Kenya Climate Innovation Center, which found that 57% of SHS customers are in rural areas and 35% are in periurban areas –– indicating a present market in each.

Total Solar Technology Growth in Sub-Saharan Africa

With annual sales growth at almost 4 million units, it can safely be said that sub-Saharan Africa presents a large market for both of these technologies. SHS sales alone have had an astounding sales growth of over 50% between 2016 and 2017, demonstrating their strength at providing sufficient renewable energy for millions of people.

Key Arguments for Solar Energy in Sub-Saharan Africa

Growth of Off-Grid Usage

Off-grid solar energy solutions (such as SHS and Pico devices) have effectively provided electricity to millions of people. They currently generate enough power for lights and basic appliances, though the demand to use larger appliances (ex. TVs, refrigerators) over solar is expected to increase over time.

That being the case, current usage capacities for off-grid solutions require that larger appliances have a grid connection, though recent technological advances are promising off-grid solution capacities to accommodate forecasted demand. Additionally, it’s been observed that many grid-based electricity customers experience reliability issues with providers and view off-grid solutions as a viable backup option.

What does that mean for off-grid solar technology solutions? As technology advances and the electrical capacity of SHS units increase over time, the target market shifts from lower-income households to median/high-income households.

Market Growth of Solar Technology in Sub-Saharan Africa

Both grid-connected solar power (and alternately, other renewable energy resources) are showing promising market development not just at a consumer level, but at a commercial level as well, as these statistics demonstrate:

• Roughly 18 million people gained access to renewable resources (namely hydro and solar) between 2012-2015, a three-fold increase since the early 2000s.
• A donor-assisted 33 MW grid-connected solar facility began operations in Burkina Faso in 2017.
• Currently, ENEL operates five commercial solar facilities in South Africa, a traditional pioneer in technology in sub-Saharan Africa.

With an increase in demand for usage capacity, advancements in off-grid technology, and the recent strides made in commercial solar energy solutions, it can be said that solar energy in sub-Saharan Africa is not only gaining widespread leverage but may begin to position itself as the leading renewable energy source for a vastly growing population of people. Perhaps even more important than that is the fact that differences between rural and urban areas in terms of renewable energy access and capacity will be little to none.

GeoPoll conducts research on a variety of topics across Africa, including energy usage and solar energy. To conduct your own study with GeoPoll’s database of respondents in sub-Saharan Africa, please contact us today.

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Although solar energy is a sustainable source of power, the advantages of solar energy in Sub-Saharan Africa (SSA) are more robust than the eco-friendly nature of the source. In today’s post, we will examine the reasons why solar energy is a thoughtful and sustainable choice for Sub-Saharan Africa’s evolving energy infrastructure.

Grid-Based Power Systems in Sub-Saharan Africa

Many parts of the world use grid-based power systems that harness power through fossil-fuels or water, for example. Upon first glance, grid-based power may seem like the most logical option because much of SSA already has some grid-based energy structure in place. Upon further examination, grid-based power has some fundamental issues in the African market.

Grid-based power would require massive distribution networks to be built throughout the vast continent. Subsequently, connections would need to be developed to transport power from these power hubs to the people currently without an electricity source. SSA is an incomprehensibly large mass of land where, outside urban center populations, many rural people live in remote isolation—far from other power-needing people. Due to this fact, grid-based power systems do not make much logical sense for the region. Power connections would need to be developed to connect very small clusters of people with energy, which is an inefficient structure.

 Need for Off-Grid Solar Power in Sub-Saharan Africa

Solar energy provides an efficient and cost-effective alternative to grid-based power solutions. Solar panels can be placed where energy is needed and used regularly, rather than weaving connections to thousands of siloed people from scattered power plants. Solar panels can also be added incrementally in locations based on the size of the population using the power source, so remote farmers can have just a few solar panels while small villages can have as many as they need to power their lives.

Decentralized systems may be the key to providing reliable and sustainable communication and power for 600 million people who are currently without mass communication and reliable power. Of course, the solar power systems, backed by large batteries are more expensive than the centrally run grids in all but the most remote locations, but the cost of local, decentralized power production is quickly going down. On-site power is now cheaper than the electricity tariffs paid by commercial or industrial clients in 47% of markets in the region studied by BloombergNEF.

Effects of an Unstable Grid-Based Power System

“Each year, the average Sub-Saharan African manufacturing frim looses 5.5% of annual sales due to power outages, over double the global average (2.6%).” According to World Bank data, businesses in Nigeria face more than one outage per day and each outage lasts an average of 8 hours. When the grid is down, customers must absorb the loss of production or resort to the relatively high cost of diesel backup power. Not only do these power outages cost production loss, but the frequent voltage fluctuations from the unstable power grid causes serious damage to sensitive equipment. Solar power units are often now deployed to complement off-line diesel power generators. Renewable energy sources, like solar energy, are more reliable choices for the sake of a functioning society and market.

Takehiro Kawahara, lead power analyst for BNEF commented on the need for solar energy in SSA with the following, “the market is small but the immense energy deficit and the crumbling power infrastructure makes Sub-Saharan Africa fertile ground for localized solar power.” From this statement and supporting research, it is clear that grid-based power structures are not the most effective fit for fixing SSA’s energy access struggle. GeoPoll’s leading mobile-phone-based research platform can help your organization dig deeper into the issues with the power network in SSA by connecting you directly with everyday people—even in the rural and remote regions that are hard to reach through traditional methods. To learn more about how GeoPoll can help you connect with African people for surveys on their access to solar energy, contact us today.

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