Africa Installs 4.5 GW Of Solar in 2025 as Markets Diversify And Demand Rises: Report

Africa’s renewable energy transition is accelerating, supported by strong economic momentum, falling technology costs, and rising demand for reliable power. With economic growth reaching around 3.9% in 2025, a latest Global Solar Council report said more than 20 countries exceeded 5% growth, underscoring the importance of energy supply as a central enabler of development.

Solar sits at the core of this trajectory, positioning the technology as both an energy access solution and an engine for competitiveness and resilience. For the next round of renewable energy growth in Africa, the Global Solar Council has recommended unlocking private capital, improving system integration, and enabling faster, more affordable, and inclusive solar deployment to support Africa’s energy security and economic development.

Top 10 Solar Markets in Africa

Africa installed approximately 4.5 GW of new solar capacity in 2025, representing a 54% year-on-year (YoY) increase and marking a sharp acceleration in annual deployment across regions. In 2025, the top 10 solar markets accounted for around 90% of new solar capacity additions, led by South Africa (1.6 GW), Nigeria (803 MW), Egypt (500 MW), and Algeria (400 MW), reflecting continued strength in large, established markets.

At the same time, several mid-sized and emerging markets — including Morocco (204 MW), Zambia (139 MW), Tunisia (120 MW), Botswana (120 MW), Ghana (92 MW), and Chad (86 MW) — each added substantial new capacity in 2025, reinforcing a trend toward broader market participation.

Eight African Countries Installed 100 MW or More

In 2025, close to eight countries installed 100 MW or more of solar capacity, compared with four last year, essentially doubling the number of countries. Additionally, two countries — Ghana and Chad — were close to reaching this threshold.

This confirms the trend of diversification identified in last year’s report. Looking ahead, the report’s medium-term outlook suggests Africa could install over 31.5 GW of solar capacity by 2029, as distributed and utility-scale markets continue to expand in parallel across a growing number of countries.

The research noted that this differs from last year’s announcement, which estimated that 18 countries would install more than 100 MW of solar capacity in 2025, as corroborated by Ember’s imports data. However, close to 10 countries have now reached that threshold, representing a significant increase compared to last year.

Countries in Africa such as Algeria, Morocco, Nigeria, Tunisia, Zambia, Egypt, South Africa, and Botswana are part of the 100 MW club. Ghana (92 MW) and Chad (86 MW) were close to making it.

Last year, only Egypt, South Africa, and Zimbabwe were above the 100 MW threshold, with Zambia at 83 MW and Burkina Faso at 87 MW, leaving five countries close to the mark. This means there are now twice as many countries as last year either at or nearing the 100 MW level.

Africa’s solar market is entering a new phase. While utility-scale projects accounted for 56% of installed capacity in 2025, it is important to note that distributed capacity (44%) is clearly underestimated, as it is harder to track.

Solar Financing Growth Challenges

Africa is also facing a solar financing challenge, which has become the binding constraint on scaling solar deployment. Despite falling technology costs and the growing competitiveness of solar-plus-storage solutions, access to capital remains expensive, fragmented, and misaligned with distributed markets.

Public and development finance still accounts for roughly 82% of total green finance, yet its contribution to energy projects has declined by about one-third over the past decade. In contrast, private clean-energy investment nearly tripled from USD 17 billion in 2019 to almost USD 40 billion in 2024. While the opportunity is clear, financing costs in Africa remain three to five times higher than in developed markets, suppressing otherwise viable projects.

Structural Challenges

Despite strong momentum, the pace and scale of deployment remain constrained by structural barriers. Sub-Saharan Africa mobilises only around USD 8 billion per year for energy, far below the estimated USD 20 billion needed to reach Sustainable Development Goal 7 (SDG7). High perceived risk, currency volatility, and weak utility balance sheets push the cost of capital well above global benchmarks.