Africa’s solar energy sector achieved a historic milestone in 2025, installing a record 4.5 GW of new capacity. According to the Global Solar Council’s latest market outlook, this surge represents the continent’s fastest growth period to date, driven by rising electricity demand and falling technology costs. While South Africa and Nigeria lead the market, the report highlights a significant rise in distributed solar and rooftop installations. Looking ahead, the continent is projected to add over 31.5 GW by 2029, provided that financing barriers and high capital costs are effectively addressed through regulatory reforms.
The Global Solar Council (GSC) released its “Africa Market Outlook 2026-2029,” revealing that the continent surpassed previous deployment forecasts last year. The 4.5 GW added in 2025 was fueled by a combination of high electricity tariffs, grid instability, and the increasing affordability of solar technology. This expansion is visible across both large-scale utility projects, primarily funded by development finance, and a burgeoning sector of privately funded distributed systems and rooftop installations.
South Africa remains the dominant force on the continent, contributing 1.6 GW to the annual total. Nigeria followed with 803 MW, while Egypt and Algeria added 500 MW and 400 MW, respectively. Notably, the market is becoming more diversified; countries such as Morocco, Zambia, Tunisia, and Botswana each exceeded 100 MW in new installations last year. Ghana and Chad also secured spots in the top ten, indicating that solar adoption is spreading rapidly beyond traditional regional hubs.
Although utility-scale projects represented 56% of the capacity installed in 2025, the GSC suggests that the remaining 44% attributed to distributed sources is likely an underestimate. The report notes that the volume of solar panel imports to Africa vastly exceeds the requirements of known utility-scale projects. This discrepancy points to a massive, under-reported wave of small-scale solar adoption, including commercial, industrial, and residential rooftop systems, which are harder to track through official channels.
Despite the optimistic growth, the report identifies the cost of capital as the primary hurdle for future scaling. Financing for solar projects in Africa can be three to five times more expensive than in developed nations. Current funding models are frequently ill-suited for smaller-scale distributed solar projects, which require local currency options, smaller ticket sizes, and shorter loan terms. The GSC emphasizes that aligning finance with both grid-scale and distributed markets is essential for long-term energy resilience.
To sustain this momentum, the GSC recommends that African governments focus on reducing investment risks through regulatory stability and transparency. Key suggestions include streamlining the permitting and licensing processes for commercial and industrial solar, improving grid planning, and establishing clear tariff frameworks. By creating a more predictable environment and working with credit agencies to recalibrate risk, the council believes the continent can lower financing costs and successfully anchor solar energy in its broader economic transformation.