With an annual growth of 30% between 2017 & 2019, the off-grid solar industry has grown to become a $1.75 billion market with more than 180 million in off-grid solar units having been sold globally and 420 million users, according to the 2020 Off-Grid Solar Market Trends Report released by the World Bank & Global Off-Grid Lighting Association (GOGLA).
Released under the bank's Lighting Global Program, the report observes that companies are increasingly focused on financial sustainability as they explore new geographies with established markets achieving saturation. It points towards two new business models in the off-grid solar industry, namely beyond energy companies that use PAYGO data to offer financing for non-energy products and services, and next-generation off-grid utilities.
Off-grid solar products could reach 823 million users in total by 2030. In order to sustain the current market growth trajectory, the sector will need an investment of $1.7 billion to $2.2 billion over the next five years.
Letting business opportunities aside, the global potential for this market is substantial as there are also more than 1 billion people with unreliable grid connectivity and over 70 million farmers as prospective users.
The Off-Grid Solar Market Trends Report is available on the website of the Lighting Global Program.