Big Changes Ahead: How South Africa’s New Tariff Review Could Impact Renewable Energy Prices
Published: April 2025
South Africa’s renewable energy sector is standing at a crossroads.
On 17 April 2025, the International Trade Administration Commission (ITAC) officially launched a review of the customs tariff structure for input materials, components, and final goods across the renewable energy value chain.
This was published in Government Gazette No. 52523 — and you only have 4 weeks to comment!
This review could reshape the cost structure of renewable energy projects in South Africa — and affect everyone from importers and installers to end-users.
Here’s what you need to know:
What Is ITAC Reviewing?
ITAC is looking at whether to:
- Increase import duties on materials and components where there is potential for local manufacturing.
- End the duty-free import rebate for solar PV panels once South Africa can meet 50% of its own demand.
- Create special rebates for inputs not yet manufactured locally.
- Introduce export controls on critical minerals like nickel, lithium, and vanadium to secure local supply.
- Apply local content requirements for renewable energy products under the new Public Procurement Act 28 of 2024.
What Could This Mean for You?
| Stakeholder | Impact |
|---|---|
| Importers | Possible higher costs on components like solar panels, battery cells, copper, aluminium, and electrical equipment. |
| Installers | Short-term project price increases if local production can’t immediately meet demand — important for ongoing projects! |
| Consumers | Higher renewable energy prices in the near term, but potential price stability in the long term if local industry grows. |
| Manufacturers | Golden opportunity to grow, partner, and supply locally to both national and African regional markets. |
Pros and Cons of the Review
Potential Benefits:
- Build a strong local renewable industry and create jobs.
- Attract new investment into South African manufacturing.
- Protect critical mineral resources like lithium for future technologies.
- Boost export opportunities into the SADC and African regions.
Potential Risks:
- Immediate price hikes for panels, batteries, and wind components.
- Delays in renewable energy projects due to supply shortages.
- More red tape for importers and project developers.
- Risk of investor uncertainty if policies are implemented too aggressively.
How to Get Involved — and Why You Should
The future pricing of solar, wind, and storage projects in South Africa could depend heavily on how these new tariffs are implemented.
ITAC is calling for public comments.
This is your chance to raise concerns, suggest solutions, and ensure a balanced approach that promotes both local growth and affordable renewable energy.
You need to submit your comments before mid-May 2025.
Send your submissions to:
📧 pphaswana@itac.org.za
📧 nsikhakhana@itac.org.za
📧 rmolala@itac.org.za
Reference number: ITAC Ref: 21/2024
Final Thoughts
South Africa has a real opportunity to build a world-class renewable energy manufacturing base.
However, if not carefully managed, these tariff changes could slow down our clean energy transition — right when we need it most.
Installers, importers, investors, and the public must have their say to make sure the right balance is struck between protecting local industry and keeping renewable energy affordable and accessible.
Act now. Read the Gazette. Understand the impact. Comment before it’s too late.
AREP Members join this conversation
Date: Tuesday 6 May 2025 from 11h00 to 12h00
Register & Join: Zoom Link
Meeting ID: 820 1127 1361
Passcode: 614175