Off-grid solar is the most cost-effective way to power 41% of people globally by 2030 who are still living without energy access. The sector already provided 55% of the new connections in sub-Saharan Africa between 2020 to 2022 – where about 85% of the unelectrified population lives.
The latest Off-Grid Solar Market Trends Report (MTR) 2024, published today by the World Bank’s Energy Sector Management Assistance Program (ESMAP) and GOGLA, warns that a 6-fold increase over current investment levels – or US$21 billion – is required to realize off-grid solar’s potential to contribute to universal energy access, or this opportunity will be missed. Under the current trajectory, 660 million people are projected to still be without electricity by 2030.
“We must rewrite this story,” remarked Qimiao Fan, the World Bank’s country director for Kenya, Rwanda, Somalia and Uganda.
“Providing access to affordable, clean electricity is critical for lifting people out of poverty on a livable planet, and we must be bold in our commitment to doing so,” he added.
The World Bank Group has partnered with the African Development Bank to connect provide first-time electricity access to 300 million people to electricity across Africa over the next 6 years, under the Mission 300 initiative.
“With the Off-Grid Solar Market Trends Report, off-grid solar is again proven as the most effective route to reach almost 400 million un-electrified people, delivering life-changing energy solutions to power their homes, farms, businesses, and public services. The industry has shown tremendous resilience in challenging macroeconomic conditions. Companies, investors, governments, and development partners need to work together NOW to unlock the US$21 billion needed to create a financially sustainable off-grid solar sector, that can scale, serve the hardest-to-reach and help achieve energy access and climate goals and ambitious initiatives like M300,” said Sarah Malm, Executive Director at GOGLA.
The Off-Grid Solar Market Trends Report Series produces data and analysis on the off-grid solar sector for investors, industry members, policymakers, and other stakeholders. GOGLA is the global association for the off-grid solar energy industry, representing over 200 members working to transform lives through clean, affordable, and high-quality solar products and services.
ESMAP has a leader off-grid solar electrification efforts for more than 15 years, previously through the now-closed Lighting Africa and Lighting Global Programs, which positively impacted over 320 million people. –World Bank
