South Africa considers increased import duties on renewable energy components

The Department of Trade, Industry and Competition is reviewing import duties on key components used in renewable energy projects as part of a broader strategy to drive local production and reduce reliance on foreign supply chains.

In a government gazette published on  April 17 2025, the International Trade Administration Commission (ITAC) highlighted that South Africa’s domestic demand trajectory, raw material resources, technological capacity, and manufacturing expertise position the country to potentially become a major player in both regional and international renewable energy supply chains.

The proposed change, as outlined by ITAC, would involve increasing customs duties on components essential for solar, wind, and battery storage technologies. These proposals have also been published for public comment.

"With careful calibration, an updated tariff structure could boost demand for, and enhance the competitive supply of, locally manufactured products and components. This shift would also unlock new export market opportunities and strengthen the competitiveness of the local renewable energy value chain," ITAC noted.

The National Employers Association of South Africa (Neasa) has pointed out that, if the proposed tariff increases are implemented, the duty liability on these products could rise from R371 million to R7.2 billion, based on 2024 import data.

"This increase is connected not only to current capacity but also to the possible future capacity to produce locally. If implemented, this would raise the duty liability on these products from R371 million to R7.2 billion," Neasa stated.

South African Photovoltaic Industry Association CEO, Dr Rethabile Melamu, argued that the rationale provided for the tariff review does not align with existing government strategies, such as the South African Renewable Energy Masterplan.

“The rationale provided for the tariff review does not clearly align with existing government strategies such as the South African Renewable Energy Masterplan, the Integrated Resource Plan, or our Nationally Determined Contributions," Melamu told Sunday World.

"In our discussions with ITAC, it has been noted that the proposed tariffs are believed to support the creation of manufacturing-related jobs. However, most employment opportunities in the solar PV sector are generated during the deployment and installation phases of projects, not necessarily in manufacturing,” said Melamu.

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