Online Reporter
Tapiwanashe Mangwiro, Zimpapers Business Hub
ZIMBABWE’S major industrial firms are shifting aggressively towards solar power as they move to cut operating costs.
Manufacturers and mines are reporting significant savings as solar projects displace diesel generators and reduce reliance on unpredictable energy supply.
For years, businesses in Zimbabwe have lived with a trade-off between unreliable grid supply from Zimbabwe Electricity Supply Authority (Zesa) Holdings and the higher, but reliable, power from diesel generators.
Grid tariffs themselves are structured in bands and have been rising in real terms, especially for larger industrial consumption blocks.
Recent tariff tables and price calculators show household and industrial bands where units above basic thresholds cost materially more, making long-run energy budgeting unpredictable for manufacturers.
However, it is the economics of backup power that has driven many firms to invest in solar. Multiple studies and field projects across the region show that electricity produced by diesel generators can cost broadly between about US$0,40 per kWh and US$1,05 per kWh once fuel, logistics, maintenance and amortisation are included.
For some heavy consumers, remote operations or mines with long generator runtimes, the fully loaded generator cost has been estimated at roughly $0,44/kWh or higher, several times the effective cost of large-scale solar averaged over the project life.
That gap is where the savings lie.
Investment in solar capacity across Zimbabwe has shown a clear upward trajectory. Independent project trackers and installers report dozens of projects and over 25 MW of recent installations, while policy documents and regional analyses signal a national push to raise renewable capacity substantially by 2030.
Public-private programmes, an expanding IPP (Independent Power Producer) pipeline, and Government renewable targets have combined to make solar a mainstream capital decision rather than an experimental add-on.
That shift is visible on factory roofs and mine compounds.
Large industrial adopters are installing hybrid systems (solar PV with battery storage and smart controllers) to run daytime production and reduce generator hours.
The result is lower fuel imports, steadier power during working hours, and improved cost predictability for finance teams.
Firms that are producing their own power through solar power systems include Econet Wireless, Sable Chemicals, Schweppes Zimbabwe, Hippo Valley, National Building Society and CBZ.
According to Chamber of Mines chief executive Isaac Kwesu, the mining sector has not been spared the acute power challenges.
“The mining industry is experiencing electricity supply outages attributed to the supply gap arising from depressed internal generation against a growing demand,” he said.
Mr Kwesu added that past outages directly hit output.
“The outages experienced result in production losses,” he said. “While some operations have installed backup systems, diesel generators and solar power, to mitigate the impact of loss of grid supply, this comes at a cost of increased production costs.”
He also noted that tariffs have been reviewed upwards, putting additional pressure on viability, arguing that mining should receive power at a competitive rate.
Industry voices outside mining agree.
Zimbabwe National Chamber of Commerce immediate past president Mike Kamungeremu said generator reliance can inflate power costs by roughly 40 percent.
CZI has been pushing the same position, saying renewables reduce cash burn.
At company level, industrialists say the numbers make the case.
“We used to run large generator banks for over half of our operating hours; diesel alone was one of our top three expense lines,” says Dr Nxaba Ndiweni, an industrialist who has installed rooftop solar systems and a battery buffer.
“Switching to solar for daytime demand slashed diesel hours and brought both cost and scheduling benefits; we can plan production without the constant worry of fuel shipments and rejig labour to productive shifts.”
From the finance side, Raymond Madziva, a banker who evaluates project economics for industrial clients, explains why lenders are now more supportive.
“The cash-flow profile of solar plus storage projects is easier to model than generator replacements. Lenders can see predictable electricity savings and lower working capital drawdowns, which improves debt service coverage and makes green loans attractive,” said Mr Madziva.
Economist Dr Ronald Gatsi, stresses the broader macro benefit, saying at scale, reduced reliance on imported diesel and lower industrial power costs improve trade competitiveness.
He said, “If the policy and regulatory environment supports grid integration and private offtake, renewables will boost investment and protect margins.”
In terms of quantifying the savings, if a mine or factory pays the equivalent of US$0,40 to US$0,50 per kWh running on diesel, and a larger scale solar plus storage project can deliver energy at a levelised cost materially lower over 15–25 years, then the switching calculus becomes compelling.
Combined with incentives, VAT deferments in the budget, and expanding IPP frameworks, many projects now clear spreadsheet hurdles that would once have looked marginal.
National plans and donor-backed initiatives further lower the financing friction for early movers.
Despite the clear upside, obstacles remain: high upfront capital costs for batteries and inverters, import duties on some renewable components, and grid-interconnection rules slow roll-out.
Where firms still rely on diesel for night-time operations or peak loads, hybrid systems with larger battery banks are needed, and those remain costly.
The regulator’s progress on renewable tariff frameworks and competitive procurement will be critical to unlock utility-scale private investment.
Industry players and financiers interviewed for this piece say three things will shape the next two years: faster approvals and clearer IPP procurement from the regulator, more attractive local financing for solar and storage, and tax or import relief on renewable components.
If those align, the country could see renewable capacity rise sharply and squeeze out the expensive diesel fall back that has long inflated industrial costs.
