Africa Records Fastest Year of Solar Growth as Installation Rises
The report noted that despite record installation, Africa continues to attract a relatively small share of global clean energy investment
Despite the boom, the financing models have not kept pace with this shift in Africa
A new report by Global Solar Council (GSC) found that Africa recorded its fastest year of solar growth in 2025, with installations rising by 54% year-on-year. The growth was attributed to two parallel solar transitions, utility-scale projects funded mainly by public and development finance, and rapidly expanding privately financed rooftop and distributed systems.
Mid-sized Markets Also Added New Capacity
According to the report, the top 10 solar markets accounted for around 90% of new solar capacity additions, led by South Africa, Nigeria, Egypt, and Algeria, reflecting continued strength in large, established markets. At the same time, several mid-sized and emerging markets, including Morocco and Zambia added substantial new capacity in 2025, showcasing a trend toward broader market participation.
“Africa’s solar boom is remarkable, showing just how quickly we can deploy clean energy when technology, demand, and ambition come together. Solar is becoming more accessible, more efficient, and – most importantly – cheaper every year,” said Zoisa North-Bond, CEO of Octopus Energy Generation.
The report had highlighted that Africa is running two energy transitions at the same time. A government-led transition, centred on grid-connected and utility-scale solar projects, largely financed through public and development finance and a privately financed transition, driven by rooftop, commercial, and distributed solar systems deployed by households and businesses.
Financing Gaps Remain
Despite the boom, the report pointed out that financing models have not kept pace with this shift. While rooftop and distributed solar are scaling rapidly, around 82% of clean energy finance in Africa still comes from public and development sources, leaving financing frameworks largely geared toward large, utility-scale projects.
Private clean energy investment has increased from around $17 billion in 2019 to nearly $40 billion in 2024, but remains poorly suited to distributed solar, which requires smaller ticket sizes, shorter tenors, and local currency financing. As a result, many consumer-led and commercial projects face higher financing costs or constrained access to capital, despite strong demand and improving technology economics.
The report projected that Africa’s solar market could grow at a compound annual rate of 21% by 2029 potentially pushing installed capacity beyond 33GW, more than six times the capacity added in 2025 alone, only if finance, planning, and regulatory frameworks are better aligned with the shift to solar.
Without such reforms, the report cautioned misalignment between policy, finance, and market demand could slow deployment, raise system costs and limit the economic value of solar.