While China still dominates in solar production, the greatest opportunities for the next wave of solar installations lie in Africa, according to the International Solar Alliance. There, solar is being deployed not only to replace fossil fuel powered electricity generation but also to bring power stability to communities that lack access.

—

“It’s a very sweet moment for solar,” Ashish Khanna, Director General at International Solar Alliance (ISA), told Earth.Org. “It took twenty-five years to grow to 1,000 GW of solar capacity, and in the past two years that has doubled. But that’s not enough. All of us believe 2,000 GW will become 4,000 GW within the next four years.”

The Asia Pacific region currently accounts for almost 70% of demand for solar power, with China as the leader, according to ISA. However, Khanna says the next centers of demand will be in Africa. 

“It’s happening because of cost. It’s 90% less expensive than ten years back, and requires 15% less land. Solar is now the least costly option for two thirds of the countries, and for the remaining third it’s part of the least costly option,” he said. 

According to a report by the Global Solar Council, 2.4 GW of new solar capacity was installed in Africa in 2024, with South Africa and Egypt as the biggest investors and emerging markets growing fast. Africa’s solar market is set to surge by 42% in 2025 and by 2028, the continent is expected to install an additional 23 GW of solar – more than doubling its current capacity. However, this growth is still a fraction of the immense solar potential in Africa, which holds 60% of the world’s solar resources.

A key area of interest is agriculture, where solar power can be deployed in hard-to-reach areas without stable grid access. “A lot of countries will see demand for agricultural solar solutions,” said Khanna. But before the potential can be realized, challenges such as finance, storage and transmission constraints must be tackled. 

Africa possesses extraordinary solar potential but only receives about 1% of total global solar investment, according to ISA estimates. The alliance recently created the Africa Solar Facility, a risk mitigation platform designed to unlock capital and accelerate solar deployment across the continent, with $74 million of a $200-million fund already mobilized. Through this fund, the group intends to unlock public investment by managing the financial risk of new projects.

Nigeria, Africa’s most populous nation, took the lead in March with the creation of a new $500-million fund meant to develop and finance distributed renewable energy (DRE) projects in the country. The aim of the DRE Nigeria Fund is to raise financing to offer tailored financial instruments and attract private sector capital while addressing critical challenges such as currency volatility, tariff structures, and the limited availability of local currency financing options. Targeted investments will support mini-grids, solar home systems, commercial and industrial power solutions, embedded generation projects, and innovative energy storage technologies. 

ISA has also set up a centralized e-procurement platform for small island and developing countries, which will offer greater collective procurement power for smaller buyers of solar equipment.

The industry is also addressing the softer challenges of deploying solar at scale. “Africa needs financing, but [also] people and regulation. There are not enough people who can do standards, testing, and financial mechanisms,” said Khanna. To this end, ISA has set up centers of excellence providing training, via a hub in India serving 17 countries. 

“If you are a technician in Malawi or a high school student in Brazil, you should have the latest information on your phone and laptop,” he said.

While Africa’s solar potential is huge, energy consumers and producers will be scattered over a wide area. To manage this challenge, the industry is looking to the latest advances in artificial intelligence (AI). 

“A lot of people are talking about using solar to power AI,” said Khanna. “The bigger game is how AI will change the fundamentals of energy utilities. Imagine you have a grid with 1,000 consumers, who are giving you back energy you don’t know how to manage. But this will be happening in millions. So we’re digitizing all distribution assets.”

Tagged:
Africa Energy transition Renewable energy Solar energy