SolarAfrica, an independent power producer, has secured R1.5 billion in funding to advance SunCentral 2, the second 114MW phase of its utility-scale solar photovoltaic project in the Northern Cape.
Located between Hanover and De Aar, SunCentral forms a multi-phase development. SunCentral 1 achieved financial close at the end of 2024 with the same 114MW capacity. When combined with the planned SunCentral 3, the initial phases will deliver 342MW, with the full project targeting 1GW, making it one of South Africa’s largest solar initiatives focused on one-to-many bilateral wheeling.
Wheeling enables generated power to be transmitted via the national grid to multiple off-takers, allowing commercial and industrial customers to access cleaner, more affordable energy without direct on-site installation. This model helps businesses hedge against Eskom tariff increases and reduce emissions, providing predictable costs in a market facing ongoing supply challenges.
The funding underscores investor confidence in SolarAfrica, part of the Starsight Energy Africa Group and backed by African Infrastructure Investment Managers and Helios Investment Partners. As reported by ITWeb, the investment supports the company’s broader wheeling pipeline of 3GW under development nationwide, building on earlier milestones like the R1.8 billion secured for SunCentral 1 in 2025.
South Africa’s solar sector continues rapid expansion amid energy security needs. On-grid solar capacity dominated 94.3 per cent of installations in 2024, driven by wheeling regulations and corporate demand. The market is projected to grow from 8.75GW in 2025 to 15.25GW by 2030 at a compound annual growth rate of 11.75 per cent, according to Mordor Intelligence.
Private sector initiatives like wheeling have accelerated, with reforms enabling businesses to wheel surplus power and access renewables cost-effectively. SolarAfrica’s approach, including virtual power purchase agreements, aligns with this trend, offering up to 50 per cent cheaper tariffs than utility rates while contributing to grid stability through dedicated investments, such as in the Main Transmission Substation.
This development reflects broader momentum in South Africa’s renewables transition, where private investment addresses Eskom constraints and supports national goals for cleaner energy. SunCentral positions companies to plan growth with reliable, sustainable power, amid a context where renewables are increasingly central to economic resilience.