Rising fuel costs drive telecoms to install solar panels on cell towers

Rising diesel prices linked to the Iran war are accelerating a shift already underway across Africa, as telecom operators move cellphone towers away from fossil fuels and toward solar power.

While the transition predates the latest price shocks—driven by long-term cost pressures and climate goals—the conflict in the Middle East has added fresh urgency, according to an AP article.

Across the continent, mobile operators are increasingly deploying hybrid systems that combine solar panels, battery storage and limited diesel backup. In the longer term, many are aiming for fully solar-powered sites, especially in rural and off-grid regions where extending electricity grids is prohibitively expensive.

The fuel, which still powers most of Africa’s roughly 500,000 telecom towers, has become both costlier and harder to secure in recent weeks as global fuel markets tightened. Countries heavily reliant on fuel imports have reported price spikes and supply disruptions, prompting governments and companies alike to rethink their energy strategies.

“Diesel has always been a major cost, but recent global events have made it even more volatile,” said Lande Abudu of GSMA. “That strengthens the case for solar and hybrid solutions.”

Traditionally, telecom towers in Africa have relied on diesel generators—often large units that must be manually refueled. Solar-powered systems, by contrast, generate electricity from sunlight and store excess energy in batteries to ensure continuous operation.

According to the article, most towers across developed countries are connected to the grid, with diesel used mainly as backup. Parts of Southeast Asia, including Indonesia, have also relied heavily on diesel but are now pursuing similar transitions to renewables.

Energy can account for up to 60% of operating costs for off-grid telecom towers, putting African operators under significant strain even before the latest crisis. Vodacom said its energy costs rose 5% to $300 million in 2025, citing higher electricity tariffs and fuel prices. The company operates across multiple African markets and holds stakes in Safaricom, which last year raised $153.6 million in green bonds to support a shift toward solar-powered infrastructure.

In Nigeria, cost pressures have intensified sharply. The removal of fuel subsidies in 2023 drove diesel prices up by as much as 200% within a year, with operators now spending around $400 million annually to keep towers running. Recent price increases tied to the Iran conflict have added further strain.

Companies are now accelerating clean energy rollouts. Firms such as iSAT Africa are deploying solar-powered towers using new financing models, while major operators including Orange, MTN Group and Airtel Africa are expanding solar and hybrid systems across their networks.

Last month, Atlas Tower Kenya announced a $52.5 million investment to build 300 solar-powered towers serving operators such as Safaricom, Airtel and Telkom Kenya. The company says 82% of its existing 500 towers are already powered by solar energy.

By Nazrin Sadigova