IMPORT DUTIES NOW IN EFFECT – What It Means for Solar in South Africa

The solar industry in South Africa is facing a new wave of pressure, as import duties are now officially applied to various renewable energy components, including photovoltaic (PV) solar panels. Although the 10% import duty officially came into effect in June 2024, many installers and developers are only now beginning to feel its impact. Stock that was cleared through customs before the tariff has largely been used up, meaning most new imports are now subject to the duty. As a result, the effects on pricing, procurement, and project timelines are becoming more pronounced in mid-2025.

As of 28 June 2024, a 10% import duty has been imposed on crystalline silicon PV modules and panels. This policy, introduced by the International Trade Administration Commission (ITAC), forms part of the South African Renewable Energy Masterplan (SAREM) – a broader effort to stimulate local manufacturing, create 25,000 jobs by 2030, and attract R15 billion in green energy investments.

While the government’s intention is to support the growth of domestic industry, many stakeholders across the solar sector have raised concerns. Industry leaders warn that these tariffs may result in increased costs, delayed project timelines, and reduced competitiveness – all during a critical time when South Africa urgently needs energy security and sustainable infrastructure.

As a result, installers and commercial clients may now be forced to reassess their procurement strategies, particularly for large-scale or time-sensitive solar projects. The new duty may shift preferences toward locally sourced panels or existing stock that cleared customs before the tariff came into effect.

Key Details of the Import Duty

  • Scope: The 10% duty applies to imported crystalline silicon PV modules and panels, previously exempt from such tariffs .
  • Exemptions: Products originating from certain regions, including the European Union (EU), United Kingdom (UK), European Free Trade Association (EFTA), Southern African Development Community (SADC), MERCOSUR, and African Continental Free Trade Area (AfCFTA) countries, may still be eligible for tariff exemptions.
  • Rationale: The tariff aims to protect the remaining local manufacturers, attract new investments into the industry, and encourage the deepening of the value chain through localization of certain inputs .

Implications for Solar Installers

  • Increased Costs: The 10% duty raises the cost of imported PV modules and panels, potentially impacting project budgets and profitability, especially for small to medium-sized installations.
  • Supply Chain Considerations: Installers may need to reassess procurement strategies, considering the availability and competitiveness of locally manufactured products versus imported ones subject to the new duty.
  • Project Timelines: The added costs and potential supply constraints could lead to delays in project implementation, affecting timelines and delivery schedules.
  • Rebate Mechanism: The South African Photovoltaic Industry Association (SAPVIA) has highlighted the need for clear guidelines on a proposed temporary rebate facility for the importation of PV cells assembled in modules or panels, particularly when such goods are not available in the Southern African Customs Union (SACU) market.

Strategic Response: Stock Up on Duty-Cleared Inventory

In light of these developments, securing stock that has already cleared customs before the duty's implementation is crucial. IBC SOLAR South Africa has recently received new stock of LONGi Hi-MO X6 Max (LR7-72HTH 615M) solar panels, which are not subject to the new import duties. This presents an opportunity for installers to maintain cost-effective operations and avoid potential delays associated with the new tariff regime.

By proactively managing inventory and staying informed about policy changes, solar installers can navigate the evolving landscape and continue to deliver sustainable energy solutions effectively.

For further information on the import duty and its implications, please refer to the official ITAC announcement and related industry analyses.

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