South Africa has been grappling with electricity shortages for more than a decade. In recent years, an increase in planned power outages, known locally as load shedding, has left some areas without power for up to 10 hours a day in severe cases. This situation has forced many households and businesses to adopt solar energy solutions for electricity production. Between March and June 2023, rooftop solar capacity in South Africa increased by 349% to 4.4 GW.
In 2021, Africa-focused private equity firm Adenia invested in its first South African companyHerholdt’s, which is a distributor of renewable products energy products such as solar panels, batteries and inverters. According to Alexis Caude, managing partner of Adenia, the turnover of the Herholdt group has increased tenfold since his company’s investment. Last year, Adenia further invested in the sector through Finally, a company that finances solar solutions for businesses, farms, sectional titles and schools looking to adopt solar energy without incurring the full upfront costs.
Caude points out that solar power generation in South Africa is more economically viable than in markets like Europe and the United States, where the solar industry often relies on government subsidies. “It’s actually cheaper to install your panels and produce your (own) electricity than to buy it on the grid… In South Africa, given the amount of sunshine you have every day, it’s in makes it an extremely profitable industry,” he says. .
Read our full interview with Alexis Caude: From Solar Power to Luxury Roses – Investor Discusses Opportunities in Africa
