Proposed import tariffs risk disrupting renewable rollout – industry bodies

South Africa’s wind and solar industry bodies have raised concerns that a proposal to increase import tariffs on renewable energy components could disrupt deployment timelines, raise costs and conflict with national energy and climate policies.

The International Trade Administration Commission (ITAC) has called for public submissions on a plan to increase duties on imported products in the renewable energy value chain.

However, the South African Wind Energy Association (SAWEA) and the South African Photovoltaic Industry Association (SAPVIA) argue that the proposed changes do not align with the country’s energy priorities and have been introduced with inadequate consultation.

While industry supports localisation, tariff protections risk undermining investment certainty unless accompanied by consistent procurement and clear support mechanisms, says SAWEA CEO Niveshen Govender.

“Government should first ensure there is a consistent and continuous demand for wind energy to support local manufacturing,” he said.

Govender called for a more detailed assessment of how tariffs could affect project delivery, energy security and the levelised cost of energy for wind. “It is necessary to initiate a deeper investigation into the impacts of potential tariffs on the local industry as well as the deployment of wind energy,” he said.

SAPVIA CEO Rethabile Melamu expressed concern about the short four-week window for public comment, saying it limits meaningful industry engagement. “The rationale provided for the tariff review does not clearly align with existing government strategies such as the South African Renewable Energy Masterplan, the Integrated Resource Plan or our Nationally Determined Contributions,” Melamu said.

While ITAC believes the tariffs could promote job creation in manufacturing, this overlooks the fact that most employment in the solar PV sector arises during installation and deployment, not component production, she noted.

SAPVIA has confirmed it will be submitting a formal response despite the tight deadline.