Solar energy investments in Tanzania are still at a small scale and have a big potential for new players.
To date, about 6 MW of Photovoltaic (PV) solar energy have been installed in Tanzania.
In 2019, the World Bank (WB) 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.
The industry continues to develop with several projects and companies reaching milestones. Construction of 11 solar mini-grids is underway on a cluster of islands in Lake Victoria as part of the first phase of an ambitious 200 MW rural electrification project.
The Government looking to attract bigger players and show its support for solar development within the country by removing VAT and import taxes on the main solar components such as panels, batteries, inverters and regulators.