What You Need To Know About Starting A Solar Business In Zimbabwe

Solar energy usage in Zimbabwe is on the rise. ZETDC still struggles to consummately satisfy the nation’s power demand. As such, several places across Zimbabwe regularly experience load shedding. That is why people are resorting to solar energy as a panacea. Solar energy is clean, renewable which brings about a range of upsides. Generating solar energy is not a hassle in Zimbabwe as most days are clear and sunny. All this presents vast business and startup opportunities in the solar energy space. With that said, I thought it necessary to tell you some of the important things to know about starting a solar business in Zimbabwe.

Licensing And Regulatory Requirements

There are several requirements in these regards that you must adhere to. Failure to do so, ignorantly or intentionally, can be consequential. There are two classes of licenses that can be applied for. Bear in mind that it is the Zimbabwe Energy Regulatory Authority (ZERA) that oversees the regulation and licensing.

1. Solar PV Technician Licenses are subdivided into 4 classes:

Class ST1

They can design, install, commission, maintain, and repair solar PV systems with a single inverter, single charge controller, single or multiple solar PV modules not more than 400 watts.

Class ST2

The technician can design, install, commission, maintain, and repair: Solar PV systems with PV array of not more than 2 kW, a single inverter/charger connected to the grid or a backup generator, a charge controller of up to 70 amperes and multiple batteries. They can also design, install, commission, maintain, and repair solar water pumping systems of a capacity not more than 2 kW.

Class ST3

Here they can design, install, commission, maintain, and repair: Grid-tied solar PV systems of a capacity not more than 50 kW; single-phase Hybrid systems not more than 10 kW direct current coupled with a single battery inverter and the technician may connect multiple batteries, and; solar water pumping systems of a capacity not more than 50 kW.

Class ST4

One can design, install, commission, maintain, and repair grid-tied or hybrid or solar water pumping systems of any capacity.

1. Contractors And Manufacturers Licenses are subdivided into 5 classes:

Class SC1

The contractor can import and sell solar PV components provided that the solar PV module rating shall not exceed 400 watts peak and inverters shall not exceed a capacity of 400 watts. They can design, install, commission, maintain, and repair solar PV systems with a single inverter charge controller, single or multiple solar PV modules not more than 400 watts. NB: The licensee shall be required to be, or to have in his employment a Class ST1 technician.

Class SC2

They can import and sell solar PV and solar water pumping components provided that the inverters sold or offered for sale shall not exceed a capacity of 2 kW. They can design, install, commission, maintain, and repair solar PV systems with a PV array of not more than2 kW, a single inverter/charger connected to the grid or a backup generator, a charge controller of up to 70 amperes and multiple batteries. They can also design, install, commission, maintain, and repair solar water pumping systems of a capacity not more than 2 kW. NB: The licensee shall be required to be, or to have in his employment a Class ST2 technician.

Class SC3

The contractor can import and sell solar PV systems and components and solar water pumping systems provided that the inverters sold or offered for sale shall not exceed a capacity of 50 kW. They can design, install, commission, maintain, and repair grid-tied solar PV systems of not more than 50 kW or single-phase, hybrid systems not more than 10 kW or direct current coupled with a single battery inverter and the contractor may connect multiple batteries. They can also design, install, commission, maintain, and repair solar water pumping systems of a capacity not more than 50 kW. NB: The licensee shall be required to have in his employment a Class ST3 technician.

Class SC4

The contractor can manufacture or import or sell solar PV products, design, install, and commission grid-tied or hybrid or solar water pumping systems of any capacity. The licensee shall be required to be, or to have in his employment a class ST4 technician.

Class SM

This license allows one to import parts necessary for the manufacture of solar PV components, and to manufacture and sell solar PV components and systems. Here you are not required to have in your employment, a licensed solar PV technician.

Comprehensive Understanding About Duty Requirements

I am not going to detail the duty requirements for the various solar items – a lengthy subject. My point is to conscientise you on the importance of being privy to the duty requirements. I know you might have heard it being said the importation of solar items into Zimbabwe is duty-free. That is true but only for selected items or when certain criteria are met. Not all solar products can be imported duty-free; some do have to pay duty. What I can tell you is that solar home systems, integrated kits that is, are duty-free. The same goes for integrated kits for the solar lantern. When we get to individual components that is when you realize some items are not duty-free.

Competition Dynamics

Two things I want to highlight here. If you plan to start a solar business in Harare, competition is stiff. There are over 85 recognized solar businesses or companies operational there. However, in other towns, there seem to be fewer players – a market prospect. The second thing, there is an issue of solar businesses that sell or install substandard stuff. This is quite common because they source cheap stuff that does not last. To gain market share go in with legit and quality stuff to stand out.

Basically for all your licensing and regulatory aspects, ZERA is your plug. We have barely scratched when it comes to solar energy use in Zimbabwe. There is progress, yes but we need to see more players, especially in other towns and cities. We cannot be having power woes with limitless solar energy around.