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In a country desperate for energy security, a new government proposal could throw a spanner in the works of South Africa’s booming renewable energy sector.
The International Trade Administration Commission (ITAC) has launched a review that may dramatically increase import duties on a wide range of green energy products — from solar panels and wind turbine parts to the smallest nuts and bolts that hold installations together. Critics argue it’s a bold move that could suffocate progress rather than stimulate it.
The review, published in mid-April, outlines a plan to evaluate 82 import categories tied to renewable energy systems and battery storage. These include key components like lithium-ion batteries, solar modules, and the steel structures that support them.
At the heart of the plan? A desire to promote local manufacturing and make South Africa a central player in the global clean energy supply chain.
But not everyone’s convinced.
‘The timelines are too tight, and the policy doesn’t align with the bigger picture,’ said Rethabile Melamu, CEO of the South African Photovoltaic Industry Association (SAPVIA), who expressed frustration over the narrow four-week window for public comment.
Melamu isn’t alone. Many across the renewable energy sector worry that the tariffs — which could be raised to the maximum rates allowed by the World Trade Organisation — might hike project costs, slow solar adoption, and ultimately backfire on the country’s clean energy goals.
For context, South Africa’s energy grid remains fragile, with frequent power cuts and a growing reliance on private solar installations. With consumers and businesses already stretched, any spike in component costs could spell trouble, as per Business Tech.
‘It’s not just about panels,’ Melamu added. ‘It’s about every cog in the machine — and tariffs on parts like screws or mounting brackets can cause bottlenecks throughout the system.’
ITAC has hinted that the shift would create manufacturing jobs, but industry insiders argue the employment benefits are limited in highly automated sectors. A mid-sized solar panel assembly plant, for instance, may employ fewer than 100 people — while project installation and infrastructure work generate far more jobs across a broader skills range.
SAPVIA is urging a full economic analysis of the entire solar value chain before any decisions are finalised.
One of the biggest flashpoints is the potential scrapping of an existing rebate on imported solar panels. This incentive has made solar installations more affordable and accessible, especially for small businesses and residential users. Removing it could be devastating, say experts, especially since local production currently meets less than 15% of national demand.
The association argues that South Africa simply doesn’t have the scale, capacity, or consistent electricity supply to ramp up production quickly enough to meet demand — let alone replace imports in the short term.
‘We need to be realistic,’ Melamu stressed. ‘Without reliable power and investment, scaling up manufacturing won’t happen overnight.’
ITAC also wants feedback on whether export restrictions on critical minerals might protect future battery production — a move that could place South Africa’s mineral wealth at the centre of the green energy race. But even this proposal comes with concerns around competitiveness, innovation, and foreign investment.
For now, the renewable sector is bracing for what could be a major policy pivot. Whether the government proceeds with its plan — or reconsiders after public pushback — will shape the future of energy in South Africa for years to come.
As the deadline for feedback looms, one thing is clear: the tension between localisation and affordability has never been more electric.
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