The great SA solar rip-off

To stay competitive, it’s crucial for South African businesses to understand the costs and benefits of decarbonisation, says Mark Boshoff of Nedbank Commercial Banking. Picture: 123RF/oohphoto
The great solar rip-off has come to light in a court application by a local solar photovoltaic (PV) manufacturer alleging widespread noncompliance with local content rules by foreign companies. Picture: 123RF/oohphoto

The only solar panel manufacturer in Sub-Saharan Africa, Durban-based ARTsolar, has revealed that 18 foreign companies, or their associated joint ventures, were awarded contracts by the government to produce power based on critical localisation requirements but are now failing to meet these.

A total of 1,200MW of energy was set to be produced by these 18 companies, stemming from three separate tenders. The tenders were issued in 2021 under the Risk Mitigation Independent Power Producers Programme (RMIPPP), and in 2022 under both the fifth and sixth bid windows of the Renewable Energy Independent Power Producers Programme (REIPPP).

As a part of their bids, the companies committed to sourcing 30% of their panels from local manufacturers.

Of particular concern, ARTsolar argues in court papers, is that the government appears to have turned a blind eye to this noncompliance.

According to the papers — filed in the Pretoria high court in 2024 — none of the 18 companies awarded the solar component of the government’s renewable energy push have complied with the local content rules, opting instead to import.

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