Commercial users are driving Botswana’s shift towards solar energy as rising electricity costs force businesses to rethink their energy strategies. Companies with high electricity consumption are increasingly investing in private generation to contain operating costs and reduce their reliance on the national grid.
The trend comes as Botswana prepares to implement a nine percent electricity tariff increase from August 1, adding to cost pressures already facing businesses. Industry players say commercial and industrial customers are leading the solar market because their higher electricity demand makes the financial case for investing in solar systems far more compelling than it is for smaller consumers.
Although the latest tariff increase alone is unlikely to trigger an immediate surge in installations, it reinforces a longer-term trend that continues to strengthen the economics of solar investment. According to Botoka Solar Chief Executive Officer Jeet Parikh, rising electricity prices are steadily shortening the payback period for private solar generation.
“With electricity tariffs continuing to rise, the payback period for rooftop solar installations has shortened significantly,” Parikh said. “It has become far more financially viable to install solar at homes and businesses.”
Parikh said large commercial and industrial enterprises are spearheading the transition. Unlike small businesses and residential properties, which are often constrained by limited roof space relative to their electricity demand, larger companies typically have sufficient space to accommodate higher-capacity solar systems.
For commercial users, the appeal extends beyond lower monthly electricity bills. Parikh said solar installations should increasingly be viewed as productive capital assets capable of generating returns that can outperform traditional bank interest rates.
New revenue opportunities are also emerging. Under Botswana’s net-metering programme, businesses that generate more electricity than they consume can export surplus power to the national grid. Commercial property owners can also lease available roof space to third-party solar operators, creating an additional income stream from otherwise underutilised assets.
Beyond the financial benefits, renewable energy is becoming an important component of corporate environmental, social and governance (ESG) strategies. Companies seeking to strengthen sustainability reporting, reduce carbon emissions or meet green building standards are increasingly incorporating solar into their long-term business plans rather than viewing it solely as a cost-saving measure.
“Renewable energy has now reached a point where it is looked at as a mainstream investment,” Parikh said.
The investment case is particularly strong for businesses with high and predictable electricity consumption. Manufacturing plants, shopping centres, warehouses, cold-storage operators and agricultural producers stand to benefit because energy costs have a direct impact on operating margins.
Jan Stigligh, Managing Director of Lucerne Fields, one of Botswana’s leading horticultural producers, recently told the Business Weekly & Review that the company has invested in solar generation and battery storage to offset rising electricity costs, particularly for its cold-storage facilities and packhouse operations where power demand is constant and unavoidable.
The growth of distributed solar generation could also reshape the role of Botswana Power Corporation (BPC). Traditionally, the utility has generated, transmitted and distributed electricity to consumers. However, as more customers install their own generation capacity, BPC is increasingly managing a network in which consumers also produce electricity.
Through the Rooftop Solar Programme, BPC customers can install grid-connected photovoltaic systems, use the electricity they generate and sell excess power back to the utility through net-metering arrangements. Current regulations allow households to install systems of up to 35 kilowatts, while commercial and industrial customers can install systems of up to one megawatt, subject to technical approvals.
Using bi-directional meters, surplus electricity generated during peak daylight hours is exported directly into the BPC grid and credited against the customer’s future electricity bills. The arrangement is gradually creating a more decentralised electricity system in which businesses and households act as both consumers and producers.
However, wider adoption also presents new technical challenges for the national electricity network.
Parikh said grid readiness remains one of the biggest constraints to accelerating solar uptake. While the economics of solar continue to improve, infrastructure limitations could slow the pace of adoption. He identified three key obstacles: grid capacity and smart metering, access to finance, and technical standards.
On grid infrastructure, Parikh said BPC’s network is not yet fully equipped to accommodate a rapid increase in privately generated electricity feeding back into the system. Expanding distributed generation will require broader deployment of smart meters and further upgrades to enable the grid to manage two-way electricity flows efficiently as more businesses begin exporting surplus power.
Financing also remains a significant hurdle, particularly for larger commercial installations. Although solar systems deliver substantial long-term savings, the upfront capital investment remains prohibitive for many businesses, especially small and medium-sized enterprises. Parikh said wider adoption will depend on more accessible and specialised financing solutions tailored to different customer segments.
He added that technical standards will become increasingly important as the market matures. Standardised installation guidelines, certified installers and stronger quality assurance measures will be essential to ensure safety, maintain grid stability and maximise long-term system performance.
