Installations of solar power in Africa jumped 54% in 2025, new data shows, marking the fastest annual growth on record, driven by governments and development agencies deploying utility-scale projects and households and businesses putting in rooftop and commercial systems.
A new report published by the Global Solar Council (GSC), a nonprofit trade body, shows that Africa installed around 4.5 gigawatts (GW) of new solar photovoltaic (PV) capacity last year, topping the previous record set in 2023 and outperforming initial predictions.
Utility-scale projects accounted for around 56% of reported installations in Africa in 2025, while distributed solar made up an estimated 44%. However, the report notes that rooftop, commercial and distributed capacity – which refers to small-scale solar generation usually situated near where the electricity is used – is significantly under-reported because of limited data.
The GSC said recent soaring solar equipment imports and deployment trends point to a broader, more diversified market serving two types of energy transition at the same time: government-led solar power projects and privately financed business and residential installations.
For instance, the continent imported 18.2 GW of solar panels in 2025, yet under a medium installation scenario, countries are projected to build just 14.3 GW of mainly utility-scale capacity in 2026 and 2027.
Over the past four years, only about 15% of solar equipment imports have been used in large utility-scale installations, pointing to rapid growth in rooftop, commercial and captive systems that are not fully reflected in official figures, the report said.
It also highlighted the need for greater and faster investment in battery storage, grids and power system flexibility, to improve reliability of supply and support rising industrial and commercial energy demand.
“Solar + storage is the hope of Africa,” said Sonia Dunlop, GSC’s chief executive officer, in a statement on the report. “This is the technology that can bring energy access, sustainable development, green growth and resilience to natural disasters and extreme weather,” she added.
Medium-sized markets expand
Large, established markets for solar power continue to lead the pack in Africa, with the top 10 solar markets accounting for around 90% of new capacity additions in 2025, led by South Africa with 1.6 GW, followed by Nigeria at 803 megawatts (MW), Egypt at 500 MW and Algeria at 400 MW.
However, solar deployment is spreading across a wider group of African countries, the report noted, with a clear shift away from reliance on a handful of early adopters. Several mid-sized and emerging markets made significant gains last year, including Morocco, Zambia, Tunisia, Botswana, Ghana and Chad.
The report found that eight African countries each installed more than 100 MW of solar capacity in 2025, double the number recorded in 2024, underscoring the pace at which new markets are expanding.
“Africa’s solar boom is remarkable, showing just how quickly we can deploy clean energy when technology, demand and ambition come together,” said Zoisa North-Bond, CEO of Octopus Energy Generation. “Solar is becoming more accessible, more efficient, and – most importantly – cheaper every year. It’s encouraging to see this potential being realised across Africa faster than ever before.”
Finance for off-grid falling behind
Despite the rapid growth of distributed solar, financing models have not kept pace. While rooftop solar and microgrids are scaling rapidly, around four-fifths of clean energy finance on the continent still comes from public and development sources geared towards large, government-led projects, the GSC report said.
Private investment in clean energy increased from about $17 billion in 2019 to nearly $40 billion in 2024, but most of this funding is not aimed at supporting smaller solar systems used by homes and businesses.
These smaller projects need modest loans, shorter repayment periods and financing in local currency, but with current offerings not structured this way, many households and companies struggle to access affordable funding for solar, despite strong demand and falling technology costs.
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Last week, leaders from major solar mini-grid players – including the largest operator Husk Power Systems – said up to $46 billion will be needed by 2030 to meet the electrification targets of 29 African countries under the World Bank-backed Mission 300 initiative. According to Bloomberg, the total would comprise $28 billion in debt, $14 billion in equity and $4.6 billion in grants and subsidies.
Investment needed to unleash growth
The GSC’s medium-term outlook suggests Africa could install over 33 GW of solar capacity by 2029 – more than six times the amount added in 2025 – as markets expand across more countries.
However, the group warned that the misalignment between funding and market needs risks slowing deployment, raising system costs and limiting the economic value of solar.
If, on the other hand, reforms align finance, planning and regulation with market realities, solar and storage can deliver not only clean power, but reliability, economic productivity and long-term energy security, the GSC said.
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Solar paired with battery storage is critical to delivering affordable, reliable power at the scale required to meet energy demand in Africa, which is expected to grow eight-fold by 2050, said Damilola Ogunbiyi, special representative of the UN Secretary-General for Sustainable Energy for All.
However, she added, “more must be done to attract clean energy investment, with mechanisms to spur public, private and philanthropic financing.”
