Bad news for South Africans who want solar panels

South Africans looking to switch to solar energy may find themselves paying higher prices for solar panels in the near future.

The International Trade Administration Commission (ITAC) has proposed increasing import duties on a number of components used in the manufacture of renewable energy devices.

The proposed increases would bring these duties in line with the World Trade Organisation’s bound rates, the maximum tariffs that a member country legally commits to specific imports.

The proposal was announced in a Government Gazette published on 27 March 2026, alongside a number of other recommendations from ITAC.

These include the designation of solar panels under local procurement and local content requirements, which prioritise locally produced goods for state-issued tenders.

ITAC has also recommended that solar panels be excluded from the country’s staged consignment policy, which allows device components to be imported separately while being tariffed as a single unit.

These three proposals could significantly increase the cost of both manufacturing and importing solar panels in South Africa, which would likely lead to price increases on these panels for customers.

The proposals follow ITAC’s Review of the Tariff Structure for input materials, components, and final goods used in the Renewable Energy Value Chain, published 17 April 2025.

ITAC invited stakeholders to submit written comments on the review for a four-week period after publication, during which they received over 45 submissions.

The commission reviewed these submissions to finalise its proposals, which it has now presented to the public.

However, it should be noted that ITAC’s announcements are only preliminary determinations and do not represent its final judgment on the matter.

ITAC has opened up a second period for public comment on these proposed adjustments, which will be open for four weeks from the publishing of the gazette.

Following the conclusion of this four-week public comment period, the commission will evaluate the submissions and make its final decision.

A bid to boost local energy production

ITAC chief commissioner Ayabonga Cawe believes that if the commission’s proposals are passed, it will significantly boost the country’s renewable energy production capacity.

In an interview on 702, Cawe explained that some preliminary recommendations were made in line with South Africa’s improving capacity to manufacture these devices.

“A few years ago, the executive authorities approved a tariff of 10% on solar, which was accompanied by a rebate,” Cawe said.

“We didn’t want to penalise South Africans for the lack of capability to supply solar projects and even household solar.”

Cawe explained that the suspension of this rebate would have to coincide with a significant increase in South Africa’s capability to supply solar.

He warned that discontinuing the rebate without this could lead to much higher costs for people looking to purchase solar panels.

Asked whether the adoption of ITAC’s proposals would lead to higher manufacturing costs for solar products, Cawe said it would depend on several factors.

“If there is full pass-through of the duties on the part of many importers, this may also serve to raise the price of imported materials,” Cawe said. “One might say you cannot avoid some marginal lift in pricing.”

“But this is also a very competitive landscape, so you’re likely to find absorption of the tariff on the part of some of these distributors, importers and even domestic producers.”

However, Cawe cautioned that the shift towards higher capacity for local renewable energy production will not happen overnight.

“You want to transition, but you also want to lock in some demand profile for your existing producers,” Cawe said. “Or else we’re going to end up importing these things lock, stock and barrel.”

The Department of Electricity and Energy (DEE) has called on members of the South African Renewable Energy Masterplan to comment on ITAC’s proposed adjustments.

DEE Deputy Minister Samantha Graham-Maré said she supports the proposals as a strengthening of South Africa’s local renewable energy production.