South Africa's solar industry is increasingly influenced by trade policy, local manufacturing objectives and efforts to build a stronger renewable-energy supply chain. For solar installers, one of the most important developments has been the introduction of a 10% customs duty on certain imported crystalline silicon photovoltaic (PV) modules and panels, together with a rebate mechanism intended to help manage supply risks.
ITAC's original decision was aimed at supporting the domestic PV manufacturing industry while balancing the need to keep solar equipment available in South Africa. More recently, ITAC has continued reviewing tariffs across the renewable-energy value chain, so installers should avoid treating the 10% duty as the only factor affecting future pricing.
What ITAC Decided — Duty Context and Stated Purpose
In July 2024, ITAC announced an increase in the customs duty on crystalline silicon PV modules or solar panels from 0% to 10% ad valorem under the relevant tariff classification. ITAC said the domestic industry had experienced declining production, sales and capacity utilisation, while local manufacturers faced significant price disadvantages against low-cost imports.
The policy objective was broader than simply increasing the cost of imported panels. ITAC stated that the duty was intended to:
- • Protect remaining local PV manufacturers.
- • Encourage investment in local manufacturing.
- • Improve local production capacity.
- • Support economies of scale.
- • Encourage localisation of parts of the solar value chain.
- • Support direct and indirect employment.
ITAC also introduced a temporary rebate mechanism for qualifying imported PV panels where the products are not available in the SACU market. This was designed to reduce the risk of shortages and prevent tariff measures from unnecessarily slowing the country's solar rollout.
For installers, this means the policy should be understood as a trade and industrial policy measure, rather than simply a tax imposed on solar businesses.
Importantly, the position has continued to evolve. In March 2026, ITAC published a further review of tariffs affecting the renewable-energy value chain. Its preliminary determination proposed that the existing solar PV panel rebate should continue for the interim and only be discontinued once domestic solar PV assembly capability reaches 50% of domestic demand, subject to monitoring and further consultation.
This makes it important for installers and importers to check the latest tariff and rebate position before placing large orders.
How It Hits Installers — Quotes, Lead Times and Substitutions
The most immediate effect of import duties is usually felt in equipment pricing.
A duty does not necessarily mean that the customer's final solar price will increase by exactly 10%. The impact depends on factors such as:
- • Supplier pricing.
- • Exchange rates.
- • Shipping costs.
- • Insurance.
- • Customs value.
- • Import duties and applicable taxes.
- • Supplier margins.
- • Distributor margins.
- • Local transport and warehousing costs.
Fixed-price Quotations Can Become More Difficult
Installers should be particularly careful when quoting projects several weeks or months before equipment is ordered.
A quotation should make it clear:
- • How long the equipment price is valid.
- • Whether the quotation is based on current supplier pricing.
- • Whether imported equipment is subject to changes in duties or taxes.
- • When equipment will be ordered.
- • What happens if the specified model becomes unavailable.
This can reduce disputes when a supplier changes pricing after the customer has accepted the quote.
Lead Times Can Also Be Affected
Trade measures can influence purchasing decisions across the supply chain. If importers reduce stock levels, wait for rebate permits or change suppliers, certain products may become temporarily harder to source.
Installers should therefore avoid relying on a single panel supplier for major projects.
Substitutions Need Proper Approval
If the original panel becomes unavailable or the price changes significantly, a supplier may suggest another model.
The installer should check that the substitute has the required:
- • Technical specifications.
- • Warranty terms.
- • Certification and compliance documentation.
- • Compatibility with the inverter and system design.
- • Physical dimensions and mounting requirements.
- • Availability and delivery timeframe.
The customer should also approve material substitutions before installation.
Customer Messaging — Explaining Policy Without Politics
Customers generally do not need a political explanation of South Africa's localisation policy. They need to understand why their solar quotation may change.
A simple explanation could be:
This keeps the conversation factual and professional.
Installers should avoid telling customers that "ITAC added 10% to every solar system." That is too broad.
The duty applies to specific tariff classifications and the actual impact on a project depends on the equipment, importer, supplier pricing and any applicable rebate arrangements.
A better approach is to show customers the commercial impact in the quotation. This makes price changes easier to explain and gives the customer confidence that the installer is not simply increasing the price without justification.
Procurement Strategy — Balancing Local vs Imported Risks
The changing policy environment makes procurement strategy increasingly important for solar installers.
Build More Than One Supplier Relationship
Do not rely on one supplier for all panel requirements.
Maintain alternative suppliers for key product categories and compare:
- • Landed cost.
- • Stock availability.
- • Lead times.
- • Warranty support.
- • Compliance documentation.
- • Payment terms.
- • After-sales service.
Consider Local Products Where Commercially Practical
Local procurement can offer advantages such as shorter supply chains, easier communication and potentially more predictable availability.
However, installers should assess products on their total commercial and technical value, rather than choosing local or imported equipment purely because of its origin.
Consider:
- • Price.
- • Product quality.
- • Warranty.
- • Availability.
- • Technical support.
- • Replacement stock.
- • Certification.
- • Expected lifespan.
- • Customer requirements.
Track Landed Cost Rather Than Catalogue Price
A panel that appears cheaper from an overseas supplier may not remain cheaper once all costs are included.
Calculate the complete landed cost, including:
- • Product price.
- • Freight.
- • Insurance.
- • Customs duty.
- • Customs clearance.
- • Port-related costs.
- • VAT where applicable.
- • Local delivery.
- • Currency fluctuations.
This gives installers a more accurate basis for comparing local and imported equipment.
Keep Documentation Organised
For imported equipment, installers should work with suppliers and importers who can provide appropriate commercial and customs documentation.
Keep records such as:
- • Commercial invoices.
- • Packing lists.
- • Customs documentation.
- • Proof of importation where relevant.
- • Product specifications.
- • Warranty information.
- • Compliance certificates.
- • Supplier correspondence.
Good documentation becomes particularly valuable when pricing, warranty or compliance questions arise later.
Localisation and the Future of Solar Procurement in South Africa
The ITAC duty forms part of a wider policy direction towards developing South Africa's renewable-energy manufacturing capability.
The South African Renewable Energy Masterplan (SAREM) was approved by Cabinet in March 2025. Its purpose includes using growing renewable-energy demand to promote industrialisation, localisation and development of renewable-energy value chains.
Government has identified solar PV, batteries, inverters and other renewable-energy components as areas where local industrial capacity can be developed. SAREM is therefore relevant to installers because procurement decisions may increasingly be influenced by local manufacturing and economic-development objectives.
This does not mean installers should stop using imported products. South Africa's solar market still depends significantly on international supply chains, and policy itself recognises the need to balance local industrial development with the availability of renewable-energy equipment.
For installers, the practical lesson is to remain flexible.
What Solar Installers Should Do Now
Installers can reduce the impact of changing solar import policies by:
- • Checking current customs duties before placing major orders.
- • Confirming whether a rebate or exemption applies to the specific product.
- • Getting written landed-cost information from suppliers.
- • Avoiding long quotation validity periods where possible.
- • Including clear price-adjustment terms in larger quotations.
- • Maintaining relationships with multiple suppliers.
- • Comparing local and imported products on total cost and quality.
- • Checking compliance documentation before approving substitutions.
- • Communicating price changes clearly to customers.
- • Monitoring ITAC and SARS tariff announcements.
The key is not simply to find the cheapest panel. It is to build a procurement process that can handle price changes, policy changes, supply shortages and product substitutions without damaging project margins.
Final Thoughts
ITAC's solar panel duty is part of a broader attempt to balance two objectives: supporting local renewable-energy manufacturing while maintaining sufficient supply for South Africa's growing solar market.
For installers, the best response is not to focus only on the percentage duty. The bigger issue is managing the complete procurement chain.
Understand the applicable tariff, calculate the real landed cost, maintain alternative suppliers and explain price movements clearly to customers. As South Africa's localisation policies develop, installers that combine good procurement discipline with strong compliance and transparent customer communication will be better positioned to manage changes in the solar market.
