Solar Power

Tanzania has a solar power installed capacity of just 26 MW against a total installed power capacity of 1,605.86 MW, leaving vast headroom for solar development in a country enjoying 2,800 to 3,500 sunshine hours per year.

Solar power is the conversion of energy from sunlight into electricity, either directly using photovoltaics (PV) or indirectly using concentrated solar power.^[1]

Since the 1980s, as the cost of solar panels has fallen, grid-connected solar PV capacity and production have doubled about every three years, and three-quarters of new generation capacity globally is now solar.^[1]

Tanzania combines strong solar irradiation with a supportive fiscal environment, positioning solar PV as one of the most promising sources of new generation capacity for both grid-connected and off-grid segments.

Solar Power Potential in Tanzania

Tanzania's sunshine hours per year range between 2,800 and 3,500, with global horizontal radiation of 4 to 7 kWh per square metre per day.

Solar resources are especially abundant in the central region of the country.

These resources are being exploited for both off-grid and grid-connected solutions, giving Tanzania a diversified pathway to expand solar deployment.

In central Tanzania, 1 MWp of solar PV generates about 1,800 MWh per year and requires about 1 hectare of land.

Solar Power Installed Capacity in Tanzania

Tanzania has a solar power installed capacity of 26 MW, a small share of the country's total installed power capacity of 1,605.86 MW.

The remainder of Tanzania's generation mix is dominated by gas, hydro, and petrol.

Given the country's irradiation profile, solar PV could theoretically generate large shares of national electricity.

According to the African Development Bank (AfDB), large-scale grid-tied solar PV installations are being undertaken in some countries for under USD 1,750 per kWp, making Tanzania's prospects excellent.

Off-Grid Solar PV in Tanzania

Off-grid solar PV has been installed in Tanzania for a wide range of applications, including schools, hospitals, health centres, police posts, small telecommunications enterprises, households, and street lighting.

More than half of this off-grid capacity is utilized by households in peri-urban and rural areas.

In 2019, the World Bank signed a grant agreement with the Government of Tanzania amounting to USD 4.5 million to finance access to a sustainable water supply through improved solar pumping systems in 165 rural Tanzanian villages.

Off-grid solutions remain critical for rural electrification, closing service gaps where grid extension is uneconomic.

Grid-Connected Solar PV in Tanzania

Grid-connected solar PV is expanding alongside off-grid deployment, particularly in central Tanzania where irradiation is highest.

With 1 MWp of solar PV generating approximately 1,800 MWh per year on around 1 hectare of land, the country offers favourable conditions for utility-scale projects.

Photovoltaics were initially used solely as a source of electricity for small and medium-sized applications, but grid-connected PV capacity has since scaled to gigawatt-level power stations worldwide.^[1]

Falling global solar equipment costs strengthen the economic case for grid-tied installations connecting to Tanzania's national grid.

Government Policy and Fiscal Framework

The Tanzanian Government supports solar development within the country through targeted fiscal incentives.

VAT and import taxes have been removed on the main solar components, including panels, batteries, inverters, and regulators.

This policy lowers upfront investment costs and encourages both large-scale developers and small distributors to import high-quality solar equipment.

The removal of duties aligns Tanzania with the global trend that has driven solar to generate 9% of world electricity in 2025.^[1]

Investment Opportunities in Solar Power in Tanzania

With only 26 MW of installed solar capacity in a system of 1,605.86 MW, the gap between potential and current output represents a significant opportunity for private investors and developers.

Utility-scale solar PV in central Tanzania benefits from strong yields of about 1,800 MWh per MWp per year, supporting attractive project economics at benchmark costs under USD 1,750 per kWp.

Off-grid and mini-grid solar solutions offer additional entry points, particularly for rural electrification, solar water pumping, and productive-use applications in schools, health facilities, and small enterprises.

The removal of VAT and import duties on panels, batteries, inverters, and regulators further improves returns for equipment distributors, EPC contractors, and independent power producers targeting the Tanzanian market.

Last Update: July 2026

References

1. Integrated Energy Systems Office | Department of Energy
2. Solar Energy | Department of Energy
3. Solar energy and the environment - U.S. Energy Information Administration (EIA)
4. End-of-Life Solar Panels: Regulations and Management | US EPA
5. The potential land requirements and related land use change emissions of solar energy - PMC
6. The potential land requirements and related land use change emissions of solar energy - PubMed