According to a new report by Bloomberg New Energy Finance, commissioned by responsAbility Investments, commercial and industrial solar presents economic opportunities to seven countries in Sub-Saharan Africa.
The report, titled "Solar for Businesses in Sub-Saharan Africa", concludes that a combination of high electricity tariffs, falling prices on solar modules and a lack of electricity reliability is driving sales of on-site solar to business customers in SSA. The figure to the left shows the number of finalised C&I projects in countries in SSA, with a total installed capacity of 74 MW. Projects in pipeline suggest that installed capacity can double in 2019.
Among the seven countries where C&I could present economic opportunities, Nigeria, Kenya and Ghana are highlighted as some of the countries with the greatest market potential. These three countries have a pipeline of 52 MW, 26 MW and 32 MW, respectively.
The main obstacle to faster market growth is reported to be the lack of access to debt financing, and so far, a majority of projects have been sold for cash, without financing, or it has been financed with developer equity where a PPA or leasing deal has been signed. Furthermore, potential customers have a limited understanding of the benefits of on-site solar, but the report also highlights that this understanding is growing rapidly.
You can download and read the full report here.