The rise of solar energy in Ghana's C&I sector

In recent years, Ghana has become one of the most exciting markets for solar energy in West Africa – especially in the commercial and industrial (C&I) sector. Companies are increasingly turning to their own solar power solutions to reduce energy costs and protect themselves against grid instability. But how exactly has the market developed? What are the drivers behind this development – and where is it headed in the coming years?

Dynamic market development in the C&I segment

Ten years ago, solar energy was still a niche topic in Ghana. In 2013, installed capacity was less than 3 MW. By the end of 2023, it had grown (market figures vary) to around 150 to 165 MW – including numerous commercial rooftop systems and the first large-scale utility projects. The C&I sector in particular has seen dynamic growth over the past five years. According to a study by the Ghana Climate Innovation Centre (GCIC) and the International Finance Corporation (IFC), companies already accounted for around 57% of installed PV capacity in 2022 – with a projected average annual growth rate of around 20% until 2029 (source: Mordor Intelligence).

In 2024, Ghana reached an important milestone in the field of renewable energies. A 16.82-megawatt rooftop solar plant was inaugurated in Tema, making it the largest single rooftop solar plant in Africa. The 17 million US dollar project is intended to supply electricity to customers in the Tema Free Zone Enclave (TFZE) industrial area.

The market in Ghana is becoming increasingly professional. Several energy-as-a-service providers are already active, offering tailor-made solar and battery systems for industry, commerce, telecommunications and the education sector. However, apart from EWIA, no provider is active nationwide; most focus on the region around the capital Accra.

Large infrastructure projects are also driving development: a 150 MW solar cluster is currently being built in the Dawa industrial area near Tema, co-financed by the IFC. It is considered one of the largest commercial and industrial solar projects in West Africa.

What is driving the market?

Several factors are fuelling the growth of the C&I solar market in Ghana:

1. Economic incentives and high electricity costs:

Ghanaian companies suffer from comparatively high electricity prices. The opportunity to permanently reduce energy costs with their own solar systems therefore represents a significant economic incentive – especially as the investment costs for photovoltaics have fallen sharply in recent years.

2. Grid instability as an acute business risk:

Although Ghana's power grid has become more stable in recent years, regular power outages (‘dumsor’) and voltage fluctuations remain a recurring problem, especially during peak times and in rural areas. The consequences include production interruptions (e.g. in industrial plants or cold chains), damage to electrical equipment due to voltage fluctuations and, last but not least, loss of revenue and competitiveness.

3. Political will and legal framework:

The Renewable Energy Act of 2011 and the Renewable Energy Master Plan of 2019 laid important foundations for market expansion. The goal is to increase the share of renewable energies in the electricity mix to at least 30% by 2030. The Integrated Power Sector Master Plan (published in 2023) once again emphasises the key role of solar energy – including in the commercial sector.

4. International financing:

International partners are supporting the solar transition. The SUNREF Ghana programme – funded by the French development bank AFD and the EU – provides low-interest loans and technical support for solar projects in the C&I sector. The African Development Bank (AfDB) and the Sustainable Energy Fund for Africa (SEFA) also support projects involving mini-grids and net metering in hospitals, schools and SMEs.

5. Technological progress and local capacities:

There is now a growing network of qualified installers and EPCs (engineering, procurement and construction) in the country. Training programmes strengthen the technical competence and quality of local providers and give well-qualified people economic prospects and incentives to stay in their own country.

Outlook: The signs clearly point to further growth

Experts from the IFC and AFD expect installed PV capacity in the C&I segment to continue growing dynamically. The regulatory landscape is also expected to continue to stabilise: Ghana is planning simplified PPA models and tax incentives for investments in renewable energies. At the same time, hybrid solutions with battery storage, floating solar or combinations with diesel backup are increasingly coming into focus to compensate for grid instability.

Of course, there are also challenges, including bureaucratic hurdles in obtaining permits, a still limited local market for storage solutions, and uncertainties regarding grid connection and tariffs. Nevertheless, the momentum clearly outweighs the risks.

Conclusion: Good market position secures future business

Ghana is on a promising path to becoming a regional pioneer in commercial solar energy use. The C&I sector is becoming the driving force behind this development, supported by economic necessity, political backing and international financing. The momentum is likely to accelerate further over the next two to three years. Companies, project developers and investors who, like EWIA, are investing in this market at an early stage and consolidating their position can benefit from a growing environment with long-term potential.