Policy changes, market updates, and technology news from across Africa.
South Africa's Section 12B accelerated depreciation incentive — which allows businesses to deduct 125% of the cost of qualifying renewable energy assets in the year of commissioning — has driven a record 2025 for commercial solar installations, according to the South African Photovoltaic Industry Association (SAPVIA). Total commercial and industrial PV capacity grew by 1.4 GW during 2025, more than double the 2023 baseline. The 125% Section 12B uplift applies to investments commissioned between March 2023 and February 2025, and was extended through February 2027 in the most recent budget. The combination of severe Eskom load shedding, high commercial tariffs, and the tax incentive has made commercial solar a near-default investment for South African businesses with available roof space. Residential solar has also continued to expand, though at a slower pace than the commercial sector, partly because the residential Section 6C tax rebate of 25% (up to ZAR 15,000) expired on February 29, 2024 and has not been renewed. SAPVIA continues to lobby for a renewed and expanded residential incentive, arguing that household solar adoption is critical to managing peak grid demand and reducing reliance on aging coal plants. NERSA's net metering regulations remain in force, allowing residential customers to feed surplus energy into the grid where their municipal distributor accommodates this — practice varies significantly between Cape Town, Johannesburg, and other major metros.
The Moroccan Agency for Sustainable Energy (MASEN) has expanded its residential green financing program, now available in 15 major Moroccan cities including Casablanca, Rabat, Marrakech, Tangier, and Fez. The program provides low-interest loans of up to MAD 80,000 for residential solar PV installations, with repayment terms up to 7 years and interest rates 200–300 basis points below standard mortgage rates. Combined with Morocco's longstanding VAT exemption on solar equipment under Article 92 of the General Tax Code and the net metering framework established by Décret 2-15-772, the financing program has accelerated residential solar adoption considerably. Morocco's solar resource is exceptional — averaging 6.1 peak sun hours daily — and the country's electricity tariffs for residential customers in higher consumption tiers can exceed MAD 1.20/kWh, making payback economics highly attractive. AMEE (Agence Marocaine pour l'Efficacité Énergétique) continues to administer complementary efficiency grants for households combining solar with broader energy efficiency improvements such as LED lighting, insulation, and high-efficiency air conditioning. Morocco's broader renewable energy strategy targets 52% of installed electricity generation capacity from renewables by 2030, with utility-scale solar (notably the Noor Ouarzazate complex) and distributed residential solar both contributing meaningfully to that goal.
Kenya's continued zero import duty and VAT exemption on solar equipment, in force under the Finance Act amendments, has reduced landed equipment costs for residential solar by an estimated 41% compared to neighbouring countries that apply standard customs duties and VAT. The Kenya Renewable Energy Association (KEREA) reports that the policy has been a key driver of the country's residential and small commercial solar growth, with installed off-grid and grid-tied capacity now exceeding 1.2 GW nationally. Kenya Power's net metering framework, which allows residential and small commercial customers to inject surplus generation back into the grid for credit, continues to operate but with significant variation in interconnection times across different distribution regions. The African Development Bank (AfDB) and the Kenya Energy Efficiency Fund (KEEF) jointly continue to provide concessional financing for residential solar+battery installations, particularly in peri-urban and rural areas where reliable grid supply remains a challenge. Kenya Bureau of Standards (KEBS) certification requirements ensure that imported solar panels and inverters meet minimum quality thresholds, helping to address concerns about substandard equipment that have plagued some other African markets. With Kenya's solar irradiance averaging 5.7 peak sun hours daily and electricity tariffs averaging USD 0.17/kWh, simple payback periods for grid-tied residential systems typically range from 5 to 7 years.