SAPVIA Comments on New ITAC Tariffs
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The South African Photovoltaic Industry Association (SAPVIA) has noted the Government Gazette notice, dated 17 April 2025 regarding the proposed review of the tariff structure for input materials, components, and final goods within the renewable energy value chain.
“We are currently engaging our members to gather input and will be submitting a comprehensive written response by the provided deadline. Concurrently, SAPVIA has initiated direct discussions with the International Trade Administration Commission (ITAC) to ensure our sector’s perspectives are fully considered,” says Dr Rethabile Melamu, CEO of SAPVIA.
“Whilst we plan to submit a detailed position in our formal submission based on our members’ inputs, we wish to highlight the following key concerns at this stage,” says Melamu.
- The time provided for representations (4 weeks) is too short to allow industry to make comprehensive submissions
- 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.
- 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.
- For instance, a PV module assembly plant with a capacity of 500 MW typically employs only 60–100 people, as these processes are largely automated. In contrast, the manufacturing of mounting structures can 10 times more jobs, with hundreds in the deployment of the technology
- Any introduction of tariffs on solar components must be guided by a comprehensive value chain analysis, including a detailed assessment of employment potential across the entire PV value chain
- The discontinuation of the solar PV module rebate would be highly detrimental to the sector. Our view is that the current local manufacturing capacity is less than 15% of domestic demand and likely to decrease based on project pipeline. Scaling to 50% or more will take several years and hinges on a stable electricity supply. In the light of our recent electricity challenges, investors may be cautious. In addition, the existing rebate system has already been constrained by limited administrative capacity within ITAC.
“SAPVIA remains committed to constructive engagement with government stakeholders to ensure that any tariff-related decisions support both industrial development and South Africa’s renewable energy transition. We will provide a full statement and data-driven submission in the coming weeks,” says Melamu.
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