The Department of Trade, Industry and Competition (DTIC) is considering tariff increases on a range of imported goods used in the renewable energy value chain to stimulate local production.
The measures, published for public comment by the International Trade Administration Commission (ITAC), would raise customs duties on components used in solar, wind and battery storage technologies.
The proposal builds on government measures introduced in 2024 when a 10% import duty on completed solar photovoltaic (PV) panels was implemented to stimulate local manufacturing. As part of the new draft measures, the DTIC is reviewing the existing solar panel tariff alongside proposals to introduce wider tariff increases across the renewable energy value chain.
According to the proposal, global decarbonisation efforts, strong domestic demand and South Africa’s raw material supply present an opportunity to strengthen the country’s position in regional and international supply chains.
“With South Africa’s technological capacity and manufacturing experience, the country is in a potentially strong position to become a key player in regional and international supply chains,” ITAC said in its public notice.
The department indicated that, if carefully managed, increased tariffs could stimulate demand for locally manufactured products and improve their competitiveness. Rebate provisions for local producers are also under consideration.
The proposal also includes the relaxation of import control regulations for critical minerals and products used in downstream renewable energy manufacturing.
Under the proposed revisions, the solar PV value chain would see the following tariff increases:
- 10% tariff on silicon
- 15% tariff on copper wire
- 15% tariff on aluminium bars, rods and profiles (an increase from the current 5%)
- 30% tariff on screws, nuts, bolts and washers
- 10% tariff on semiconductor devices
The wind energy value chain would see the following tariff increases:
- 10% tariff on iron and non-alloy steel ingots
- 15% tariff on aluminium structures (an increase from the current 10%)
- 20% tariff on generating sets
- 15% tariff on transformers, converters and inductors
Tariff increases proposed for the battery energy value chain include:
- 10% tariff on graphite
- 5% tariff on nickel
- 5% tariff on lead
- 30% tariff on electric accumulators
The measures, published for public comment by ITAC, were accessed via Green Building Africa.
