New Delhi (NVI): The off-grid solar industry has grown into a USD 1.75 billion annual market, providing lighting and other energy services to 420 million users and remains on a solid growth curve, a new report said.
According to ‘2020 Off-Grid Solar Market Trends’ report, which was published by World Bank Group’s Lighting Global Program in cooperation with Global Off-Grid Lighting Association (GOGLA), finds that the industry has made tremendous strides in the past decade.
“Since 2017, revenues from the off-grid solar industry continue to rapidly grow, increasing by 30 percent annually. To date, more than 180 million off-grid solar units have been sold worldwide and the sector saw USD 1.5 billion in investments since 2012,” it said.
With 840 million people still lacking access to electricity, the growth of the off-grid solar industry is critical to meeting the Sustainable Development Goal (SDG7) for universal access to affordable, reliable, sustainable and modern energy by 2030.
World Bank Africa, Energy and Extractive Industries and Regional Director, Infrastructure Global Director Riccardo Puliti said the off-grid solar industry is instrumental for achieving universal electricity access.
“We are scaling up our support to client countries by helping them leverage this potential through innovative and financially sustainable solutions,” he added.
According to the report, the sector would need an additional boost of up to USD 11 billion in financing. More specifically, the sector would need to grow at an accelerated rate of 13 percent, with up to USD 7.7 billion in external investment to companies and up to USD 3.4 billion of public funding to bridge the affordability gap.
Global Financial Institutions Group for IFC Senior Director Paulo de Bolle said that only by crowding in commercial finance at scale can we reach the target of achieving universal access by 2030
“We are eager to work with our local bank partners in the more mature off-grid markets where commercial debt can drive the next stage of market growth,” he said.
Trends demonstrate that companies are moving into new geographies and underserved markets as established markets become more saturated. These companies are also shifting towards larger, higher-margin solar home system sales in response to growing consumer demand for appliances and back-up systems.
GOGLA Executive Director Koen Peters said that this report is another confirmation of the significant impact off-grid solar has already achieved, and the massive opportunity that remains going forward.
“The Market Trends Report shares details on where we stand, and where we should be heading next,” he added.
