The significant growth in South Africa’s solar photovoltaic (PV) market and a recently implemented 10% import duty tax by the Minister of Finance, Enoch Godongwana on solar photovoltaic (PV) panels, cells, and modules presents a skills development opportunity for the country.
The growth in the PV market is driven by various factors, including government policies, decreasing costs of solar technology, and increasing awareness of renewable energy benefits. According to a Mordor Intelligence report, South Africa’s solar PV installed capacity grew from 1,064 MW in 2014 to 5,664 MW by 2023. The market is projected to continue expanding, with the government targeting a solar PV capacity of 8,400 MW by 2030 and 18,000 MW by 2050.
This anticipated growth could provide numerous economic and skills development prospects for South Africa. In an effort to boost local solar panel manufacturing in the country, a 10% import duty imposed on solar photovoltaic (PV) panels, cells, and modules was signed by Finance Minister, Enoch Godongwana, on 28 June 2024 and came into immediate effect.
The solar PV import tax is a component of the broader South African Renewable Energy Masterplan (SAREM), that aims to create 25,000 jobs by 2030 and attract ZAR15bn in new investments through green energy initiatives. The SAREM seeks to leverage the increasing demand for renewable energy to boost industrial development and job creation. According to the International Energy Agency (IEA), China controls over 80% of the global manufacturing stages of solar panels. This dominance in the solar panel manufacturing industry has allowed China to significantly drive down the cost of solar energy globally. With increased opportunity for local development and manufacture of solar PV panels, cells and modules comes there comes a need for improved and increased local skills. The Energy and Water Sector Education and Training Authority (EWSETA) has embarked on several innovative and impactful partnership to fill this gap. As a result of a partnership between EWSETA and the Chinese Culture and International Education Exchange Centre (CCIEEC), 54 learners and six lecturers from six Technical Vocational Education and Training (TVET) are currently in China for a year-long experiential learning programme in the field of solar PV manufacturing. The programme will leverage Chinese experience and technology in education; enhance the technical quality of participating South African TVET’s through international collaboration; integrated educational programmes with industry, and providing students with practical skills and real-world experience.
From a skills development perspective, the programme will address critical skills for renewable energy and other sectors, as well as prepare students and educators for emerging technologies and industries.
Another innovative project that demonstrates EWSETA’s commitment to advancing skills development in the Renewable Energy sector is the partnership with the United States Agency for International Development (USAID), in support of Power Africa, a U.S. government-led partnership and the United Nations Development Programme (UNDP). Now in its second phase, this programme has realised the training of women electricians and artisans at three TVET colleges in Mpumalanga during phase 1. Phase 2 saw 140 women put through their paces at seven TVET colleges in Limpopo. Through targeted training and capacity building, the EWSETA is creating pathways for women to enter and excel in this dynamic industry and epitomises our steadfast commitment to amplifying women engagement in historically underrepresented domains. As the renewable energy sector continues to expand, these trained women will play a pivotal role in driving innovation, fostering local entrepreneurship and promoting environmental sustainability. This programme not only advances the Just Energy Transition but also catalyses broader socio-economic transformation. By investing in women empowerment and renewable energy education, we are not only building a more sustainable energy future but also paving the way for a more equitable and prosperous society for all. Programmes like these, that forge local and international strategic alliances, will prove to be crucial in propelling skills development, capacitating our TVET Colleges and championing gender inclusivity within the energy sector. By Teslim Mohammed Yusuf (Executive for Planning, Monitoring and Evaluations at EWSETA) and Prof. Raj. Naidoo (Head of the Department of Electrical, Electronic, and Computer Engineering, University of Pretoria)
