A South African solar company, ARTsolar, has filed a court application challenging the compliance of 18 foreign companies with local content requirements for government-backed solar projects.
The Durban-based manufacturer alleges that the companies, awarded contracts under the Independent Power Producer (IPP) Programme, did not meet the stipulated 30% local sourcing requirement for solar panels.
The contracts, issued in 2021 and 2022, cover projects expected to produce approximately 1,200MW of energy. ARTsolar claims the government has not enforced compliance, allowing the companies to import panels instead of sourcing from local manufacturers.
ARTsolar’s legal action, filed in the Pretoria High Court in 2024, seeks a review and possible reversal of the exemptions granted to these companies. Alternatively, the company requests the court to compel the Department of Trade, Industry, and Competition and the Department of Mineral Resources and Energy to determine whether the IPPs complied with localisation requirements.
Esh Seevnarayan, chairman of ARTsolar, described the lack of enforcement as a significant concern. According to him, companies that do not meet local content obligations still benefit from the full contract value, which was intended to cover the costs of meeting local sourcing requirements.
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ARTsolar identifies itself as the only solar panel manufacturer in Sub-Saharan Africa. In March 2025, the company faced allegations that it imported panels from China while claiming they were locally produced. Following these claims, ARTsolar secured an interim gag order against three individuals, who had accused the company of inflating prices and misrepresenting the origin of its panels.
The Industrial Development Corporation (IDC) argued that the gag order would interfere with its investigation into the matter. Acting Judge Paul Wallis amended the order to allow the IDC to continue its review, removing direct reference to the corporation in the gag.
Responding to the allegations, ARTsolar stated that it had suffered reputational damage from what it describes as defamatory claims. The company also criticized media coverage that, in its view, recycled unverified allegations about the gag order and the company’s operations.
ARTsolar clarified that its primary focus is supplying government projects that require locally manufactured panels in accordance with national legislation. The company acknowledged that in limited cases, where project volumes are small, it may supply imported panels, while maintaining warranties and quality standards.
The court hearing to finalise or dismiss the interdict against the four individuals was scheduled for 29 July 2025. ARTsolar withdrew its application prior to the hearing.
The case highlights the challenges of enforcing local content requirements in South Africa’s solar energy sector. ARTsolar’s legal action seeks to ensure that government contracts reflect stated localisation rules, which aim to support domestic manufacturing and maintain compliance with national legislation.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
