Solar Solutions for South African Industry: Technologies, Economics, and Key Players

South Africa’s industrial sector is increasingly turning to solar energy to cut costs and ensure reliable power amid rising electricity tariffs and load shedding challenges. Solar installations, whether photovoltaic panels on factory rooftops or large solar farms feeding power via private agreements, have surged in recent years, driven by improved economics and supportive policies.

This article provides an in-depth look at the main solar technologies available to industrial energy users (photovoltaic, solar thermal, and concentrated solar power), their key differences, and practical considerations for investment. We also highlight South African market conditions, incentive frameworks, and leading solar solution providers along with notable industrial projects, offering actionable insights for company owners and managers evaluating solar options.

Types of Solar Energy Technologies in the Industrial Sector

Photovoltaic (PV) Solar

Photovoltaic technology uses semiconductor cells (typically silicon) to convert sunlight directly into electricity. PV panels produce DC power when photons hit the cells, knocking electrons free; this is then inverted to AC for use in facilities.

PV systems are highly modular, ranging from small rooftop arrays to utility-scale solar farms, and can be installed on industrial rooftops, parking canopies, or ground sites. They have no moving parts, resulting in relatively low maintenance requirements (mostly periodic cleaning and inverter replacements). Typical module conversion efficiency is around 15–22%, so a significant area is needed for large power output.

However, PV costs have plummeted, making it the most cost-effective and widely adopted solar option for industry. PV produces power only when the sun shines, but it can be paired with battery storage to supply electricity after dark. The flexibility, scalability, and continually dropping price of PV have led it to dominate new solar installations for daytime industrial power needs.

Solar Thermal (Solar Heating)

Solar thermal systems capture the sun’s energy as heat, rather than electricity. These systems typically use collectors (flat-plate panels, evacuated tubes, or mirrors) to absorb solar radiation and heat a fluid. In industrial settings, solar thermal is often applied for process heat or hot water, for example, pre-heating boiler feedwater, generating steam for cleaning or cooking, or heating fluids in manufacturing processes.

Non-concentrated solar thermal collectors (like flat plates or tubes) can efficiently provide moderate temperatures (typically up to 100°C, or higher with advanced designs) using the sun’s heat. The efficiency of converting sunlight to heat in such collectors can exceed 50%, much higher than PV’s electrical efficiency, meaning they can harvest more energy from the sun for thermal purposes. Thermal energy can also be stored in insulated tanks (as hot water or molten salts) for use during cloudy periods or at night.

Solar thermal is best suited for industrial clients who have significant steady heat demands, e.g. in food and beverage, textiles, or mining processes, allowing solar energy to directly offset fuel (such as coal, gas, or electricity) used for heating. A key advantage is that solar heat can often be integrated into existing boiler or heating systems. However, these systems typically cannot generate electricity (unless paired with a steam turbine in a large setup) and so are a parallel solution alongside grid or generator power.

Costs depend on the scale and temperature requirement; simpler systems for water heating are relatively inexpensive and have short paybacks if replacing costly fuels. Solar thermal maintenance involves pumps, pipes, and heat exchangers but is generally straightforward. Overall, solar thermal offers a way to “solarize” a portion of industrial thermal energy use with high efficiency, reducing fuel consumption and emissions.

Concentrated Solar Power (CSP)

Concentrated Solar Power uses mirrors or lenses to concentrate sunlight onto a small area to produce high temperatures, driving a thermal power cycle. Industrial CSP installations typically use fields of mirrors (heliostats) focusing sunlight onto a central receiver (as in power tower designs) or long trough mirrors focusing onto pipes (parabolic trough design). The intense heat is used to heat a transfer fluid (like oil, molten salt, or steam) which then generates steam to drive a turbine and produce electricity.

Essentially, CSP is a solar-thermal power plant, producing grid-quality AC electricity via a steam turbine (similar to a conventional power station, but with solar heat). CSP plants commonly include Thermal Energy Storage (large tanks of heated molten salt) so they can store heat during sunny periods and continue generating power after sunset. This dispatchable power ability is CSP’s greatest strength, it can provide continuous or on-demand electricity, making it useful for delivering stable power in the evening or during peak usage.

However, CSP requires strong direct sunlight (high DNI – Direct Normal Irradiance) and clear skies; it performs best in desert-like climates. It also typically demands large, flat land areas for the mirror fields and is economical only at fairly large scales (tens to hundreds of MW). CSP technology is more complex and capital-intensive than PV, involving turbines, heat exchangers, and precise solar tracking, so upfront costs are much higher. In South Africa, CSP has been deployed in utility-scale projects under the REIPPPP programme (e.g. Xina, KaXu, Ilanga, Kathu Solar One, each 100 MW class CSP plants in the Northern Cape), demonstrating its viability in the sunniest regions.

These plants use molten salt storage to generate several hours of power after sunset. For individual industrial companies, CSP is generally too costly and large to build for on-site use; but it could be pursued via consortia or IPP arrangements if very large, energy-intensive operations wanted around-the-clock solar power. CSP’s value in the industrial context may lie in supplying the grid or multiple off-takers with dispatchable renewable energy, complementing PV’s daytime generation.

South Africa’s 100 MW Xina Solar One CSP plant uses rows of parabolic trough mirrors and thermal storage, allowing it to generate electricity for up to five hours after sunset. CSP installations like this require high direct sunlight and significant land area, but provide stable solar power output with storage for industrial or grid use.

Key Differences Between PV, Solar Thermal, and CSP Technologies

Despite all three harnessing the sun’s energy, PV, solar thermal, and CSP differ fundamentally in operation and suitability. Below we compare these technologies on several important factors for industrial applications:

Energy Form & Usage: PV produces electricity directly, suitable for running machines, lighting, and feeding into the grid. Solar thermal produces heat, ideal for thermal processes (water/steam heating, drying, etc.) but not electrical needs (unless coupled with a generator). CSP produces heat to generate electricity, effectively a power plant, and is usually used for utility-scale electricity supply rather than direct process heat or on-site power (due to its scale).
Operating Principles: PV’s solid-state conversion has no moving parts; solar thermal and CSP use fluids and pumps. CSP specifically uses concentrated sunlight to reach much higher temperatures (e.g. 300–500 °C in trough systems) to drive turbines, whereas typical solar thermal heaters operate at lower temperatures (up to ~150 °C for many industrial process heat systems). This means CSP can facilitate high-grade heat and power cycles, but at complexity and cost that only make sense at large scale.
Efficiency: Each tech has a different kind of efficiency. PV panels convert ~15–22% of sunlight to electricity. Solar thermal collectors often capture 40–70% of sunlight as heat (since thermal conversion can be more efficient than PV’s electrical conversion).

CSP’s overall efficiency from sunlight to electric output is moderate (often ~20%+ range net), but because it can store heat and run optimally, its capacity factor (actual energy output over time) can be high even after sundown. In terms of land use, PV generally produces more electricity per unit area in most climates.

However, in extremely sunny, hot areas CSP can yield comparable or even higher output per land area – one analysis notes that in deserts, a CSP plant’s annual electricity generation can be roughly double that of a PV farm occupying the same area, due to CSP’s ability to operate into the evening and the fact that PV panels lose efficiency in very high temperatures.
Energy Storage: This is a critical difference. Solar thermal systems can include simple thermal storage (insulated hot water tanks, etc.) to shift heat supply by a few hours. PV systems have no inherent storage, producing power only when the sun is out; they rely on batteries or other storage if power is needed at night.

CSP is uniquely advantaged with built-in Thermal Energy Storage (usually molten salts), which is relatively cost-effective at large scale, enabling CSP plants to dispatch electricity during evening peaks or at night. For an industrial client, this means PV might require adding battery banks for night operations, whereas a CSP plant (if one could tap into it) might deliver evening power as part of its design.
Cost and Complexity: PV has become the cheapest and simplest option – fast to install and scale. The price of PV modules has dropped so dramatically that PV is now favored in most projects, with numerous CSP proposals being converted to PV because of cost advantages and quicker construction. Solar thermal for process heat can also be cost-effective, especially if it replaces expensive fuels; its simplicity (essentially plumbing and heat exchangers) means maintenance is manageable and systems can last decades.

CSP, on the other hand, involves high CAPEX: mirrors, tracking systems, heat exchangers, turbine generators, plus ongoing need for skilled operation. In South Africa’s context, utility-scale PV projects have come in at some of the lowest tariffs in renewable auctions, whereas CSP projects, while valued for storage, had significantly higher tariffs due to higher capital costs.

For an industrial company evaluating on-site generation, PV usually offers the lowest cost per kWh. Solar thermal project costs are measured per delivered heat (e.g. R/MJ or R/kWh_th) and can be very competitive against electricity or gas boilers if grant support or carbon tax benefits are available for the initial investment.
Suitability and Scale: PV is highly scalable, it can be as small as a few kW on a warehouse or as large as hundreds of MW in a dedicated solar farm. This makes PV adaptable for virtually any industrial facility’s size and energy budget. Solar thermal is also modular (one can install a few dozen square meters of collectors or several thousand, depending on heat needs), but it is only useful if there is a consistent heat demand to utilize the hot water/steam produced.

It’s an excellent choice for industries like brewing, food processing, textiles, or mining operations that require heat in the 60–150 °C range, as demonstrated by local case studies (e.g. a Cape Town brewery using solar collectors to heat process water). CSP by contrast is not very scalable downward, small CSP units are uneconomical, so it’s typically considered at 50+ MW scale. Thus, CSP in South Africa has been implemented in large independent power producer projects, feeding power into the grid or via off-take agreements, rather than individual factories.
Geographic Constraints: PV systems can work in most locations – even in partly cloudy regions – since they can capture diffuse sunlight (though output is highest in sunny areas). Solar thermal collectors also can work in a range of climates (again, more sun equals more heat, but diffuse light still produces some heat).

CSP requires strong direct sun (clear sky) to concentrate effectively; it thrives in the Northern Cape-like conditions (high DNI, low cloud cover) and would perform poorly in humid or cloudy regions. Industrial companies in South Africa’s sunnier provinces (Limpopo, Northern Cape, North West), might consider CSP or solar thermal more favorably for high-temperature needs, whereas any region can utilize PV for electrical needs.

In summary, photovoltaic solar is usually the go-to for on-site industrial electricity generation due to its affordability and flexibility, while solar thermal can address industrial heating requirements efficiently where applicable. CSP remains a more niche solution suitable for large-scale power generation with storage.

Often, these technologies can complement each other, for instance, an industrial site might use PV for electricity and a solar thermal system for hot water, or a combination of PV (for daytime power) with access to CSP-sourced power in the evenings via the grid or wheeling. The choice depends on the specific energy demands and circumstances of the industrial client.

Key Considerations for Industrial Solar Projects in South Africa

When evaluating solar options, industrial clients must balance technical and financial factors to determine the best solution. Key considerations include:

Capital vs Operating Expenditure (CAPEX vs OPEX): Solar projects involve a high upfront capital cost but very low operating costs (the “fuel” – sunlight – is free). Companies must decide whether to invest CAPEX themselves or opt for an OPEX model via third-party arrangements.

In South Africa, it’s common for industrial solar PV to be funded through power purchase agreements (PPAs) or leases with solar providers, effectively buying the solar energy as a service. This shifts the burden of CAPEX to an independent power producer, while the industrial off-taker just pays a tariff per kWh (OPEX) often lower than Eskom rates.

For those with capital and a desire to own assets, buying the system outright can yield higher long-term savings (since after payback, power is essentially free). Each approach has pros and cons: owning means keeping all the financial upside (and accessing incentives like tax depreciation), whereas PPAs/leases reduce risk, require no upfront spend, and put maintenance responsibility on the provider.

The good news is that innovative financing options are plentiful, from commercial bank loans tailored to solar, to vendor financing and rental models, making solar accessible even to mid-sized firms cnbcafrica.com. Industrial decision-makers should evaluate their balance sheet preferences: a solar PPA keeps debt off the balance sheet and turns energy into a month-to-month expense (OPEX), whereas a capital investment creates a depreciable asset and longer-term ROI.
Return on Investment (ROI) and Payback: Solar projects for commercial/industrial users in South Africa typically have attractive payback periods, especially given Eskom’s steep tariff escalations. Between 2007 and 2022, Eskom electricity prices increased by 653% (effectively 4× in real terms), dramatically improving the business case for solar.

Many businesses now report solar PV paybacks in the range of about 3 to 7 years, depending on system size and usage profile, with larger systems often paying back faster due to economies of scale. (Smaller installations may take closer to 8–12 years, but still well within the panels’ 25-year lifespan.)

For example, modeling by GreenCape showed that a 250 kWp rooftop PV system can achieve roughly a 5-year payback under typical conditions. After payback, the company enjoys very low-cost energy for the remaining life of the system, potentially 15+ years of essentially free electricity.

Solar thermal projects similarly see returns based on fuel savings; a Cape Brewing company installation that offsets nearly 30% of a brewery’s thermal energy from paraffin had an ROI of around 6 years. Industrial clients should calculate ROI under various scenarios: with and without incentives, with conservative vs. high Eskom tariff escalation, etc.

In almost every scenario, the trend of rising electricity costs means solar’s savings grow over time. Additionally, the government’s accelerated depreciation incentive (Section 12B of the tax code) allows 100% or even 125% of the solar investment to be deducted in the first year, significantly boosting after-tax ROI for companies that invest capital.

This incentive, active as of 2023, essentially gives a company a tax shield greater than the cost of the system (125% deduction), which can shorten effective payback by 1-2 years. Overall, industrial solar investments are viewed as low-risk, high-return projects in the current environment, often yielding internal rates of return (IRRs) well above 15-20%.
Maintenance and Reliability: A key consideration is the ongoing maintenance of the solar installation and its impact on operations. PV systems are very reliable and require minimal upkeep, modules typically have 20-25 year performance warranties and only need periodic cleaning (more frequently in dusty environments) and perhaps replacement of inverters after 10-15 years. Solar thermal systems have mechanical components (pumps, valves) but are relatively simple; regular inspections, fluid top-ups, and cleaning of collectors are usually sufficient.

CSP plants, relevant mostly at utility scale, require more intensive maintenance (mirror cleaning, handling of thermal fluids, turbine maintenance) and skilled operators, which is one reason they are run by specialized power companies rather than individual industrial users.

For an industrial client installing PV or solar thermal, it’s important to ensure they have either an in-house capability or a maintenance contract with the installer/EPC to keep the system at peak performance. Many solar providers in South Africa offer O&M (operations and maintenance) services, and PPAs usually include full maintenance by the provider.

Industrial managers should plan for occasional downtime (e.g. inverter servicing) but overall, solar technologies have proven to be highly reliable. In fact, the absence of moving parts in PV means unplanned failures are rare. Ensuring proper equipment selection (tier-1 panels, reputable inverters) and installation quality is key up front.

It’s also wise to budget for cleaning (especially in high-dust mining areas or near pollution sources) to avoid soiling losses. With basic maintenance, solar assets can operate for decades – many local businesses have systems still going strong well past their ROI point.
Scalability and Future Expansion: Industrial energy needs can change as operations grow or processes change. A benefit of solar PV is its scalability, companies can start with a modest system and expand later by adding more panels or battery storage as needed (assuming space is available).

It’s important to consider upfront the ultimate potential, e.g., utilizing as much roof space as possible or planning ground space, so that if the first phase succeeds, expansion is straightforward. Solar thermal, too, can often be expanded by adding more collector panels to increase heat output if demand rises.

When negotiating PPAs or leases, companies might build in the option to scale up the system. One constraint could be the site’s electrical connection capacity; however, with recent regulatory changes allowing larger embedded generation, many facilities are now using systems of several megawatts where in the past they were limited.

South Africa’s license-exemption threshold for embedded generation was raised (first to 100 MW in 2021, and effectively removed in 2023), meaning even very large private solar plants can be built for self-supply or wheeling without a onerous licensing process.

This has unleashed the possibility for mines and large factories to consider 10, 20 or 50 MW solar farms on-site or nearby. Scalability also applies in terms of integrating with other energy sources: a solar PV system can be combined with diesel generators, the grid, and batteries in a hybrid power setup to ensure round-the-clock supply.

Industrial users should ensure any solar solution is designed with future expansion and integration in mind e.g. capable inverters that can parallel with new capacity, a layout that allows adding panels, and perhaps oversizing certain components initially (like using an inverter that can handle more panels later).
Image: The Gp-To Guy Creations
Energy Needs Profile (Electricity vs Heat, and Timing): The optimal solar solution depends on the facility’s energy consumption profile. If a factory’s primary energy use is electrical (motors, conveyors, HVAC, etc.), then PV is the direct choice to offset grid consumption. If a significant portion of energy is used as heat (steam generation, drying, boiling, etc.), then incorporating solar thermal could yield big savings by directly displacing fuel use.

In many cases, a combination is beneficial, for instance, a food processing plant could use PV to power machinery and solar thermal for pre-heating water for cleaning processes. The timing of energy use is also crucial: solar produces during the day, so sites with large daytime loads benefit most.

Fortunately, many industrial operations (e.g. mining, manufacturing lines) have daytime-heavy usage, aligning well with solar generation. If a plant runs 24/7, then either storage or backup is needed to cover night hours, here, solutions could include battery banks for PV, thermal storage for solar heat, or a combination of solar with grid/diesel at night.

Companies should analyze their load profiles: if peak demand charges or time-of-use tariffs hit them hard in afternoons, solar PV can shave those peaks. If they experience load shedding, having on-site solar+storage can keep critical processes running. The flexibility of solar solutions now (with modular batteries, smart inverters, etc.) means even variable and round-the-clock operations can incorporate a high share of solar.
It’s also worth noting that excess solar production (if any) need not be wasted: with wheeling and feed-in options emerging, an industrial generator can send power to other facilities or sell back to the grid in some areas. For example, the City of Cape Town allows commercial solar producers to feed excess into the municipal grid for credit, and other municipalities are following suit with feed-in tariffs for embedded generators. This makes sizing a system beyond one’s instantaneous demand more viable, knowing surplus can generate revenue or credits (though feed-in rates are typically lower than retail tariffs).
Regulatory Environment and Incentives (South Africa): South Africa’s policy landscape for self-generation has become increasingly favorable. As mentioned, the removal of licensing requirements up to 100 MW (and now unlimited with registration) was a game-changer, enabling rapid growth of commercial solar installations.

Industrial operators should be aware of registration requirements with NERSA for larger systems and comply with grid interconnection standards (NRS097, etc.) when installing embedded generation. Many local governments have also clarified rules for grid-tied solar – for instance, requiring reverse power flow blocking unless explicit permission to feed in is granted.

Companies considering solar must coordinate with the local utility or municipality to ensure compliance and possible upgrade of the grid connection if needed. On the incentive side, the Section 12B/12BA accelerated depreciation is a major financial incentive: as of the 2023 tax amendment, businesses can deduct 125% of the cost of renewable energy installations in the first year (for a limited period to stimulate quick investments).

This effectively means the government is subsidizing a portion of the cost via tax relief. Additionally, there are grant programs and green loans available, for example, the South African SME Energy Efficiency Programme and some DFI (Development Finance Institution) funding for clean energy.

Carbon tax is another factor: South Africa has a carbon tax that is set to increase in coming years; on-site solar generation can help companies reduce their taxable emissions (if they currently use grid power or fossil fuels) and potentially earn carbon credits. Net Metering / Feed-in Tariffs: While not uniform nationally, certain municipalities (Cape Town, eThekwini, others) offer feed-in tariffs or net billing for energy exported by commercial solar systems.

This can improve the economics if an industrial plant has periods of low usage (weekends) where solar would otherwise be curtailed. Wheeling frameworks have also opened up, allowing privately generated power to be transmitted over Eskom or municipal grids to another site.

This is significant for industries with multiple locations: a company could, for instance, build a single large solar farm in a sunny region and wheel the power to its various factories, under bilateral agreement with Eskom/municipalities. Pioneering projects in 2023–2024 have proven this model (discussed below).

Overall, the South African government and regulators are actively encouraging private-sector solar adoption to alleviate pressure on the grid. Industrial players should stay updated on the latest incentives (such as any extension of the 125% tax break or new subsidy programmes) and ensure all regulatory approvals are in place when embarking on projects. Engaging with experienced solar developers or consultants can greatly smooth the navigation of licensing, PPA contracts, and grid connection permissions.

South Africa’s Industrial Solar Market: Key Players and Case Studies

South Africa has seen a boom in commercial and industrial solar activity, with numerous companies specializing in this segment and many high-profile projects already online. By 2022, the country’s rooftop and on-site solar PV capacity reached an estimated 2.3 GWp, with the commercial and industrial segment accounting for about 72% of that total (roughly 1.65 GW).

This rapid growth is fueled by the strong business case and need for energy security. Below we highlight some leading solar solution providers operating in the industrial market, along with notable case studies of industrial solar installations in South Africa.

Notable Industrial Solar Projects and Case Studies

Aerial view of SOLA Group’s 256 MWp solar PV project in the North West province, comprising two plants (126 MW and 130 MW) completed in 2024. This installation supplies 200 MW of clean power to Tronox Mineral Sands via a wheeling agreement on Eskom’s grid. It is South Africa’s largest private solar wheeling project, demonstrating how mining operations can be powered by off-site solar generation.

Tronox Mineral Sands 200 MW Wheeling Project: In a landmark deal, mining company Tronox partnered with SOLA Group to secure ~200 MW of solar power for its heavy mineral sands operations. Completed in 2024, the project consists of two dedicated solar PV farms in Lichtenburg (North West) with a combined capacity of 256 MW_p (delivering 200 MW AC).

The solar farms use over 390,000 bifacial panels on trackers, generating about 594 GWh per year. Power is fed into Eskom’s high-voltage network and “wheeled” to Tronox’s facilities hundreds of kilometers away.

This wheeling arrangement, enabled by recent regulatory frameworks, allows Tronox to enjoy solar energy without having the array on its property. It’s effectively a private PPA – Tronox buys the solar electricity from SOLA at an agreed price, and Eskom charges a wheeling fee for use of its grid.

Importantly, this project enables approximately 40% of Tronox’s South African electricity needs to be met with renewable energy. It also injected over R200 million into local economic development during construction. The success of this largest-to-date wheeling project has opened the gates for similar models, proving that energy intensive industries can procure utility-scale renewable power independently of the constrained public procurement programs.

For Tronox, the benefits include long-term cost savings (shielding from Eskom hikes), improved reliability, and major progress toward decarbonization goals. The Tronox-SOLA project is often cited as a template for mines and large factories across South Africa to alleviate their energy woes by tapping into remote solar and wind resources through private agreements.

Gold Fields South Deep 50 MW Solar Plant: Gold Fields, one of the world’s largest gold miners, commissioned a 50 MW solar PV plant at its South Deep gold mine in Gauteng in 2022. This large-scale behind-the-meter installation (nicknamed the “Khanyisa” plant) was built on mine property and now supplies around 24% of the mine’s electricity needs on average.

South Deep consumes about 494 GWh of power annually, the solar farm can generate ~103 GWh/year, significantly reducing draw from the Eskom grid. The project cost was about R715 million and was justified by both financial and sustainability motives (it cuts the mine’s power bill by R123 million per year, saving 110,000 tons of CO₂).

Notably, this project was initially sized at 40 MW due to regulations, but once the 100 MW license cap was announced, Gold Fields increased it to 50 MW. It’s one of the first mega-scale solar plants directly by a mining company for self-use. The solar PV array is integrated with the mine’s private grid, reducing reliance on Eskom especially during daytime peak tariff periods.

The success has emboldened Gold Fields to consider wind power next (they’ve announced plans for 50–60 MW of wind). The South Deep solar plant demonstrates that even deep-level mines can effectively integrate renewables for a portion of their power – improving resiliency against load shedding and saving costs.

For industrial peers, the message is clear: even energy-intensive, 24/7 operations can start with solar for daytime supply and achieve attractive returns (Gold Fields expects under a 6-year payback, after which the mine enjoys essentially free daytime power).
Anglo American Platinum’s Mogalakwena 100 MW Project: Anglo American, through its platinum division, is developing a 100 MW solar PV plant at the Mogalakwena mine in Limpopo – the world’s largest open-pit platinum mine.

The project, in partnership with IPPs (EDF Renewables and Pele Green Energy), reached financial close in 2022 and is expected online by end of 2023. This plant will supply the mine via a PPA, contributing significantly to Anglo American’s goal of 100% renewable energy for its South African operations by 2030.

Mogalakwena’s solar farm will also eventually feed a hydrogen production facility as Anglo pilots hydrogen-powered haul trucks on-site. This case illustrates a trend of major mining houses investing in captive renewables – Anglo is also exploring a broader 500 MW pipeline (including wind farms) through a joint venture with EDF.

Once operational, the Mogalakwena solar plant will be one of the largest single-site solar installations for a private off-taker in SA, reducing the mine’s dependence on Eskom by roughly a third and cutting carbon emissions (as well as providing more stable power for operations in a region prone to grid constraints).
Sibanye-Stillwater Renewable Program (267 MW mix): Sibanye-Stillwater, another mining giant (platinum and gold), has taken a slightly different approach by signing PPAs for a portfolio of projects. In 2023, Sibanye announced the start of construction on a 150 MW solar PV project and a 103 MW wind project to supply its operations via wheeling.

The 150 MW solar plant, developed by SOLA Group, will be a multi-buyer independent power producer project – Sibanye will offtake 75 MW of the capacity over a 10-year PPA, and the remaining capacity will be sold to other buyers on a flexible basis.

The 103 MW wind farm (Witberg) is being developed by IPP Red Rocket, with Sibanye offtaking the power for 15 years. Together with an earlier 89 MW wind project (Castle), these will provide about 267 MW to Sibanye’s mines by 2025, meeting ~45% of its SA electricity needs. This multi-project strategy allows Sibanye to diversify sources (solar and wind) and locations (Free State for solar, Western Cape for wind) to ensure a more consistent energy supply.

It also highlights the multi-buyer PPA model that is gaining traction: the idea that a big solar/wind farm can have more than one off-taker, increasing flexibility and potentially allowing smaller energy consumers to buy slices of a larger project. For Sibanye, the expected outcome is a 15% reduction in Scope 2 emissions (nearly 1 million tons CO₂/year) and significant energy cost savings, while boosting power security.

This case underscores that even if a single site can’t absorb a huge renewable plant alone, companies can collaborate or split projects to reach scale. It also cements Sibanye as a leader in private energy procurement among South African corporates.
Industrial Manufacturing and Commercial Facilities: Beyond the mining sector, numerous factories and commercial facilities have adopted solar. For instance, Mercedes-Benz South Africa installed a large rooftop PV system (approximately 6 MW) at its East London manufacturing plant, covering its assembly buildings with solar panels to power the production of luxury vehicles.

Beverage companies have also embraced solar: Heineken’s Sedibeng brewery in Gauteng commissioned a 6.5 MW solar PV plant in 2021 to brew beer with sunshine, and Coca-Cola Beverages SA has outfitted multiple bottling plants and distribution centers with solar arrays to cut energy costs.

In the retail sector, major shopping centers like Mall of Africa, Clearwater Mall, and V&A Waterfront have multi-MW PV installations, reducing their grid consumption and providing backup during load shedding. Cold storage and food processors (e.g. Tiger Brands, RCL Foods) are adding solar to manage their extensive refrigeration loads.

Many of these projects report not just cost savings but also marketing benefits, as clients increasingly value suppliers with green energy credentials. A typical ROI in these sectors has been 4-6 years with the tax incentive, and often the solar covers 20–50% of the facility’s electricity demand, depending on roof space and load matching.

An example on the thermal side: the Cape Brewing Company (CBC) in the Western Cape installed a solar thermal system (120 m² of collectors) to heat water for its brewing processes, meeting about 30% of its thermal energy needs and saving nearly 20,000 liters of heating fuel annually.

The system achieved its intended ROI of ~6 years and has reduced the brewery’s reliance on propane-fired boilers. This goes to show that solar opportunities exist not only for electricity but also for process heat in industries like breweries, dairies, and textile plants.
CSP Projects feeding industry via grid: While no single industrial facility (to date) runs its own CSP plant, the success of the Northern Cape CSP plants is worth noting. Projects like Xina Solar One and Kathu Solar Park (both 100 MW) feed dispatchable solar power into the grid, which in turn benefits industrial customers by adding stable capacity.

Xina Solar One, for example, uses molten salt storage to deliver up to 5 hours of power after sunset, meaning during evening peak times, it can supply the grid when PV has tapered off.

Such projects have been supporting Eskom’s evening peak since coming online (Xina in 2017, Kathu in 2019). As Eskom’s grid mix gets “greener,” industries drawing from the grid indirectly use this renewable energy. Additionally, new CSP or hybrid projects may emerge tailored for direct private offtake, there are concepts of smaller CSP for mines (for process steam or power with storage), but none widely deployed yet.

However, with storage becoming increasingly crucial, we may see CSP or concentrated solar thermal innovations (like high-temperature modular systems) being piloted at large industrial sites in the future, especially if storage costs for batteries remain high for long durations.

South Africa’s industrial solar market has matured rapidly – what was once a fringe consideration has become a mainstream strategic investment for factories, mines, and commercial operations alike. Owners and managers evaluating solar today have a spectrum of technologies and business models at their disposal.

Photovoltaic solar PV is typically the workhorse solution for cutting electricity costs and improving energy resilience, while solar thermal installations can tackle specific heating needs with great efficiency. At the utility scale, CSP plants contribute by adding dispatchable solar into the mix, and innovative projects show that even off-site solar farms can directly power industry through mechanisms like wheeling.

The differences between PV, solar thermal, and CSP mean that an optimal solution often involves the right mix: companies must assess their electricity vs heat requirements, load patterns, and expansion plans to decide the proportion of each technology.

Economic comparisons generally favor PV for electricity (due to its low unit cost and versatility) indeed, PV has seen explosive 60% annual growth in the C&I sector in recent years. But other forms of solar shouldn’t be overlooked where they fit: e.g., using solar heat for boilers can yield fuel savings that pure PV cannot achieve.

Critically, the financial case for industrial solar in South Africa is stronger than ever. Businesses can achieve energy cost reductions on the order of 15% or more, often with minimal risk and investment when using PPA models. The combination of skyrocketing grid tariffs and valuable incentives like the 125% first-year tax deduction has shortened paybacks and boosted ROI, making solar one of the highest-impact investments a company can make in its operations today. Moreover, intangible benefits such as protection from load shedding disruptions, price certainty for energy, and sustainability branding add to the rationale.

Industrial players should also factor in the maintenance and operational aspects, fortunately, solar technologies have proven reliable and are supported by a growing ecosystem of service providers and skilled technicians in South Africa. With proper maintenance, solar assets will reliably produce power or heat for decades.

Scalability means the system can grow with the business, and the modular nature of solar aligns well with incremental capacity additions.The South African government’s moves to enable private generation and the emergence of a competitive solar industry landscape with capable developers (SOLA, SolarAfrica, SolarSaver, and many others) give industrial energy buyers ample choice and confidence to proceed.

Already we’ve seen marquee projects like Tronox’s 200 MW solar supply, Gold Fields’ solar-powered mine, and brewing companies harnessing the sun in their kettles, each case study adds to the evidence that solar works for industry, at different scales and in diverse applications.For a solar company owner or manager, these trends signal a robust and growing market.

Competition may be intensifying, but so is demand – the “pie” of industrial solar is expanding as more companies wake up to the need for energy autonomy and cost control. Key players are differentiating through innovative financing, system performance guarantees, and integrated solutions (like offering batteries or energy management systems alongside solar).

Partnerships between IPPs and corporates are forging new paths (multi-buyer projects, wheeling, etc.), which will likely be replicated across sectors from mining to manufacturing.In closing, industrial firms in South Africa have an unprecedented opportunity to redefine their energy sourcing. By carefully considering the types of solar technologies, understanding their differences, and weighing key project considerations (CAPEX vs OPEX, ROI, maintenance, etc.), companies can tailor a solution that meets their needs.

South Africa’s ample sunshine is an asset waiting to be tapped, whether on the factory roof or via a solar farm in the Karoo, and the case studies discussed prove that doing so can yield significant economic and operational benefits.

Solar energy technologies, in their various forms, have moved from the realm of environmental aspiration to that of business imperative for South African industry. The companies that successfully integrate these solutions will enjoy not only lower costs and greater energy security, but also contribute to the broader transition toward a resilient and sustainable energy future.

Orka Solar – Potchefstroom’s Go-To Name in Solar Energy

Looking to break free from load shedding or slash your electricity bills? Look no further than Orka Solar, Potchefstroom’s trusted solar energy specialist. With a solid track record dating back to 2009, Orka Solar has become the go-to provider for tailored, reliable, and cost-effective solar power solutions in the North West.

Whether you’re a homeowner wanting to save on monthly costs or a business needing a dependable energy source to keep operations running smoothly, Orka Solar offers systems that fit your exact needs. From grid-tied systems to hybrid setups and full off-grid independence, their team of in-house engineers and installers ensures you get a quality solution designed just for you.

What sets Orka Solar apart is their long-term commitment to clients. They’re not just installers,they’re energy partners, focused on helping you power your future efficiently and sustainably.Orka Solar has successfully executed a diverse range of solar energy projects across South Africa, catering to residential, commercial, agricultural, and educational sectors.

Notable installations include a 317 kWp system at Allem Farm in Ventersdorp, a 280 kWp setup at MooiMed Private Hospital in Potchefstroom, and a 68.1 kWp system with 80 kWh storage at Laërskool Mooirivier. These projects underscore Orka Solar's commitment to delivering tailored, efficient, and sustainable energy solutions throughout the country.

View there projects here: https://orkasolar.co.za/projects/

🔌 Contact Orka Solar Today:

📍 Address: Potchefstroom, South Africa

📞 Phone & WhatsApp: 082-660-0851

📧 Email: info@orkasolar.co.za

🌐 Web: Visit Orka Solar on The Go-To Guy