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How Renewable Energy is Bringing Down Electricity Costs for Millions in East Africa

By Bonface Orucho/Bird Story Agency

In the quiet evenings of rural Kitui or the bustling outskirts of Kampala, something remarkable is happening as households that once relied on smoky kerosene lamps and noisy diesel generators are now switching on lights powered by the sun.

For families, small businesses, and entire communities across Africa, electricity is becoming more affordable, more accessible, and more reliable than ever before. And behind this transformation is the powerful force of renewable energy.

A new report by the International Renewable Energy Agency (IRENA) largely attributes this transition to the falling cost of renewable energies across the world. According to IRENA, 91% of new renewable energy projects globally are now cheaper than fossil fuel-based alternatives.

“From mini-grids in rural Uganda to large-scale solar farms in Northern Kenya, East Africa is not just adopting renewable energy. We are shaping its future,” says Abraham Masiyiwa, a clean energy researcher at Power Energy Futures Lab.

The falling cost of solar panels and wind turbines is only part of the story. In Africa, solar electricity has become significantly cheaper, dropping from 22 US cents per kilowatt-hour in 2015 to just 7 cents in 2024. That’s almost on par with global costs.

In places like Nigeria, over 120 solar mini-grids have been installed in recent years, powering tens of thousands of homes and small shops. Local developers say these systems are cutting power costs by up to 60% compared to diesel.

Even in Kenya, where grid connectivity has expanded, mini-grids and solar home systems are making a difference in off-grid counties like Turkana, Marsabit, and Taita Taveta.

What does cheaper electricity actually mean for ordinary people? For Mama Wanjiku, who runs a tailoring shop in Kwale, it means she can now operate her sewing machines well into the night without worrying about generator fuel. In Lira, Uganda, students are studying longer hours thanks to solar lighting, and farmers in Kajiado are using solar-powered irrigation to grow vegetables during the dry season.

“These changes are transforming lives,” says Masiyiwa. “We’re seeing more children doing homework, more shops staying open, and more money staying in people’s pockets.”

In 2024 alone, off-grid solar companies affiliated with GOGLA, the global association for the off-grid solar energy industry, sold over 9 million solar kits and nearly 2 million appliances such as fridges, fans, and water pumps, serving more than 137 million people.

Across East Africa, utility-scale solar projects are also becoming the norm. In Kenya, projects like Gatome Solar Park and Garissa Solar Plant are feeding clean power into the national grid, reducing dependency on expensive fuel imports.

According to IRENA, utility-scale solar installations across Africa now cost 68% less than they did a decade ago.

Despite the progress, the renewable energy story isn’t all sunshine as financing is still a major challenge. While equipment costs have dropped drastically, African developers still face high interest rates of around 12%, compared to just 4% in Europe. This means African projects often end up more expensive to build, even when the technology is cheap.

There are also issues with grid integration. In some countries, national grids are too weak or outdated to handle new solar and wind power sources. Permitting and licensing delays slow down projects, and local supply chains sometimes push up costs.

“We need more investment in transmission infrastructure and smarter energy policies,” Masiyiwa urges. “Otherwise, even cheap power won’t reach those who need it most.”

Luckily, technology is helping to overcome some of these challenges. Battery storage, which allows solar power to be stored and used at night has become much cheaper. Prices for Battery Energy Storage Systems (BESS) have dropped by 93% since 2010, making them viable even in rural African settings.

Hybrid systems that combine solar, wind, batteries, and digital controls are also being used to ensure a more reliable supply. In June 2025, South Africa’s Red Sands Project, the continent’s largest standalone battery facility, reached commercial close. This 153 MW system will help stabilize the grid and store surplus solar energy.

Masiyiwa stresses that affordability isn’t just about hardware but it is also about smart policies and strong partnerships.

Countries like Rwanda and Ethiopia have introduced results-based financing, streamlined licensing, and subsidies for solar systems. These moves are helping to bring down the costs even further.

In Kenya, the government’s support for independent power producers (IPPs), tax incentives on solar components, and collaboration with development partners have accelerated the clean energy transition.

But more needs to be done, especially in fragile states and poor communities that still struggle to afford even basic systems.

All in all, the bigger picture is bright as renewable energy is not just helping Africa go green, but it is helping families save money, farmers grow more food, and schoolchildren study with light.

According to IRENA and the African Development Bank, a full transition to renewable energy could increase Africa’s GDP by 6.4%. That means more jobs, more opportunities, and more prosperity powered by the sun and the wind.

The story first published in bird story agency. Has been adapted for East African audience: https://bird.africanofilter.org/stories/more-africans-are-paying-less-to-access-energy?locale=en

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