Volkswagen Group Africa Completes Second Phase Of Solar Project: Kariega Factory Now Has 5.2MWp Of Onsite Solar

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Over 9,200 solar panels have been installed at VWGA to date, generating 7,125 MWh annually.

The impressive technological progress in the solar industry over the past decade has resulted in a drastic reduction in prices of solar panels. This has accelerated the adoption of solar around the world. Having lagged compared to other places, solar panel shipments to a lot of African countries have surged over the past couple of years, led by South Africa. A lot of this adoption is being driven by large corporations looking to integrate more clean renewable energy in their energy mix. Of course, the unit economics of solar makes more sense now than ever before, meaning corporations will get to enjoy lower energy costs through offsetting daytime grid consumption with onsite solar or even through wheeling from operators that generate electricity offsite using solar panels. 

The chart above from The Centre for Renewable and Sustainable Energy Studies (CRSES) at Stellenbosch University show the progress made in South Africa’s solar sector. Homes and businesses have played a key role in driving adoption in South Africa as they look to improve their energy security and also reduce their electricity bills.

One of the firms that is increasingly incorporating solar in South Africa is Volkswagen Group Africa (VWGA). VWGA has completed the second phase of its solar PV carport project in the employee car park and service center at the Kariega manufacturing plant, further demonstrating its focus on renewable energy and sustainable manufacturing.

Since July 2024, VWGA’s Kariega plant has been the only Volkswagen plant exporting the Polo to Europe and the Asia-Pacific regions, reaching more than 30 countries. Additionally, the Polo was South Africa’s most exported car last year. Just shy of the 30-year anniversary of Polo production at Plant Kariega in 2026, VWGA celebrated the production of its two-millionth Polo. Out of the two million Polos built so far, 592,840 were made for the local market, while 1,407,160 were produced for export. South Africa-based car plants produce quite a significant number of vehicles for the export market. The auto sector is a key pillar of South Africa’s economy.

VWGA says the multi-phase solar project located at the employee car park began in 2022, as part of VWGA’s long-term plan to transition its operations toward renewable energy sources. The first phase of this project, 3.1 MWp (5,712 panels), was completed in 2024. The second phase has added 2.1 MWp to the existing renewable infrastructure at the plant. The newly installed 3,582 solar panels (each 585W) are projected to generate approximately 2,699 MWh of clean energy. VWGA says the R35 million capital investment in phase two, adding up to a total investment of R90 million, underscores VWGA’s ongoing efforts to align its operations with its goal of carbon neutral production. With both phases now complete, the total solar power capacity of the project stands at 5.2 MWp, capable of producing 7,125 MWh annually.

“The completion of the second phase of our solar project marks another major milestone in our journey towards fully sustainable manufacturing,” said Ulrich Schwabe, Production Director at Volkswagen Group Africa. “This shows our commitment to using cleaner energy and making our operations even more environmentally responsible,” Schwabe added.

Image: Part of the solar PV installation at VWGA Kariega car factory (courtesy of VWGA)