Ghana’s commercial and industrial solar market is beginning to take off

The rate of access to electricity in Ghana is one of the highest in West Africa, which might suggest that commercial and industrial (C&I) operators have less reason to turn to energy sources other than the national grid than their counterparts in neighbouring countries. However, Ghana’s C&I solar market segment is beginning to take off, growing at a faster rate than the solar market as a whole. According to an analysis by Mordor Intelligence, C&I solar installations are expected to continue growing at a compound annual growth rate (CAGR) of 39.24 per cent until 2031, compared with a CAGR of 37.42 per cent for the market as a whole.

Falling prices for photovoltaic modules are helping to boost the profitability of C&I solar. According to Mordor, lower capital expenditure is shortening the payback period for C&I rooftop solar installations in the cities of Tema and Kumasi, reducing it from seven to less than five years. The Ghana Standards Authority has also adopted more than 100 photovoltaic standards aligned with IEC standards, which improves bankability. As increased profitability makes self-generation an increasingly attractive option, businesses are turning to solar power to reduce their long-term operating costs.

Seth Twum-Akwaboah, Director-General of the Association of Ghana Industries, recently called for increased investment in solar power to help businesses reduce their energy costs and remain competitive. Speaking on 26 August at the launch of the BisaConnect platform, a new online marketplace dedicated to solar power, Mr Twum-Akwaboah stated that rising energy costs remained one of the main concerns for Ghanaian businesses.

Price fluctuations

Electricity prices can be volatile in Ghana. The country’s Public Utilities Regulatory Commission (PURC) increased electricity tariffs by 9.86 per cent in early 2026, before they fell by 4.81 per cent in April. The PURC’s latest update, which came into effect on 1 July, led to a 3.49 per cent increase in electricity tariffs for all customer categories. The commission stated that this revision took into account fluctuations in the exchange rate between the Ghanaian cedi and the US dollar, inflation, the energy mix and the cost of natural gas.

Current electricity tariffs are set at 1.75 GHS ($0.16) per kWh for non-residential customers consuming between 0 and 300 kWh per month, rising to 2.13 GHS ($0.19) per kWh for those consuming more than 301 kWh per month. The next quarterly tariff review by the PURC is scheduled for around October, but price fluctuations and the general upward trend appear to be prompting more businesses to consider switching to solar power, which offers more predictable long-term costs.

Occasional power cuts

Although Ghana’s electricity grid is relatively stable, it nevertheless experiences regular power cuts and voltage fluctuations, particularly at peak times and in rural areas. Whilst the situation was gradually improving, the country was hit at the end of July by a major failure of its national electricity grid, which resulted in a nationwide power cut.

On 23 August, the Ghana Electricity Company announced seven days of scheduled power cuts in eastern and western Accra, the Ashanti Region, in Tema and in the Eastern Region, as part of ongoing maintenance operations aimed at stabilising the electricity supply. These cuts naturally affect businesses and remain a key factor driving more commercial and industrial customers to turn to solar systems.

Flagship projects

The largest commercial and industrial (C&I) project currently operational in Ghana is a 16.82 MW rooftop photovoltaic installation that supplies power to businesses operating within the Tema Free Zone enclave in the Greater Accra Region. It was developed by the Ghanaian conglomerate LMI Holdings, with financial support from the International Finance Corporation (IFC).

The IFC is currently supporting Solar for Industries Ltd (SFI), a subsidiary of LMI Holdings, in the development of up to 150 MW of solar capacity in the Tema Free Zones and the Dawa Industrial Zone. The electricity generated is expected to power more than 100 businesses in the food processing, cement, steel, textile and light manufacturing sectors. The 150 MW target is planned in two phases, the first of which, with a capacity of 100 MW, is expected to be completed in October this year. LMI has previously indicated its intention to increase solar capacity to 1 GW by 2032, which suggests that further large-scale projects may be announced in the future.

Alongside these larger-scale projects, a more conventional C&I segment is developing, comprising rooftop and ‘behind-the-meter’ photovoltaic installations (behind the meter) serving hospitals, hotels, telecommunications companies and educational institutions. Recent examples include a 2.55 MW ‘behind-the-meter’ installation at Nestlé Ghana’s production site in Tema, which is reported to have been commissioned in June.

Net metering framework

Ghana’s net metering scheme also offers an attractive opportunity for C&I sector customers. This is a billing mechanism that allows consumers with grid-connected solar installations to feed their surplus electricity back into the distribution network, using a bidirectional smart meter that records both the electricity imported from the grid and that exported to it.

The scheme currently permits photovoltaic installations with a maximum capacity of 500 kWp per customer, making it suitable for a wide range of commercial and industrial users. The electricity fed into the grid is credited in kWh against the electricity consumed from the grid, rather than being paid out in cash, which means the scheme is primarily designed to reduce electricity costs. It is therefore particularly well-suited to businesses with high electricity demand during the day, which can thus maximise their on-site solar electricity consumption whilst benefiting from credits for any surplus generation.

The government has sought to facilitate participation in this programme through the Renewable Energy Development Programme (SREP). In December 2025, the Ministry of Energy and the Green Transition, together with the Energy Commission, launched a dedicated online application portal for the net metering programme, enabling households, businesses, industries and public institutions to apply for smart meters and track the progress of their applications. The programme targets 12,000 net metering systems, including more than 10,900 installations for private individuals, SMEs and the private sector.

The programme also provides financial support for small businesses. According to the SREP’s net metering website, SMEs are eligible for a grant of $665, compared with $730 for households.

Sources: Mordor Intelligence, Public Utilities Regulatory Commission, Scaling-Up Renewable Energy Programme