Every day the sun shines and in some places around the world, it is either sunny or cloud but always the sun shines. If the sun shines then it is possible to make money from the sun.
In an article by Somini Sengupta of the New York Times News Service, one place where the sun shines is South Africa. The country has been one of the leading economy countries in Africa because of its great mineral wealth.
That economic might means power generation and for years it has been Eskom. However, for a few decades the company has been mismanaged, but people now have an alternative – solar energy.
Thanks to China and its commitment to be the world leader in renewables, the prices of solar panels has dropped and it is feasible to install them. In South Africa, solar has risen from almost 0% to 10% of South Africa’s electricity-generating capacity.
When President Trump imposed tariffs on China, the Chinese went looking for new markets and that includes Africa, where 600 million people lack reliable electricity. Across the continent, solar imports from China rose 50% for the first months of 2025, according to Ember, a British energy-tracking group.
South Africa was the largest destination of solar, but not the only one. Sierra Leone imported the equivalent of more than half its total current electricity-generating capacity.
China through state-owned Power China is building utility-grade solar farms in South Africa. They are also bidding on contracts to add 8,700 miles of transmission lines in South Africa, because according to South Africa’s deputy minister for electricity and energy, Samatha Graham-Mare, we do not have the upfront costs to expand the grid. China does.
In South Africa, every kilowatt generated privately owned solar installation is a hit to the bottom line of the Eskom’s coal-burning plants which are old and in poor shape.
In the past 5 years, South Africans installed solar panels representing more than 7 gigawatts or about 1/10 of the total installed capacity of 55 gigawatts.
Eskom has removed onerous licensing requirements on private installations. It has allowed people to sell power to the grid. Eskom is planning to build large solar arrays on the grounds of its shuttered coal plants.
In theory, the solar panels could be made in South Africa, but they are made in China which means the manufacturing jobs are in China. The trade deficit with China continues to grow, while the US imposed tariffs on South African goods.
Linking to dividend paying stocks, if alternatives are viable, people will use alternatives. The task of the profit making company is to ensure the alternatives are limited. With changes in technology, how long will it last?
There are more questions than answers, till the next time – to raising questions.