The latest semi-annual Global Off-Grid Solar Market Report published by GOGLA, the global association for the off-grid solar industry, with support from Efficiency for Access and the World Bank Group’s Lighting Global Program, shows that GOGLA affiliates sold 8.96 million solar energy kits, a drop of a little over half a million units versus sales in 2022, linked to structural declines in South Asia as well as to lower sales or slower growth in core markets in Sub-Saharan Africa.
In the last two years, the number of people benefiting from improved energy access through off-grid solar products has increased by 16 million. However, sales would need to grow sustainably to reach universal energy access by 2030 and maximize the potential of productive use of renewable energy (PURE). As we saw in our recently published Investment Data, the numbers would need to grow 7X to realize the off-grid solar industry’s potential impact.
The new report shares data from July to December of 2023 and allows for estimates of total sales for 2023. Data is gathered from leading off-grid solar and energy-efficient appliance companies that represent around 28% of the overall off-grid solar market (termed ‘GOGLA affiliates’).
“Despite showing great resilience during COVID and the following years, the off-grid solar industry is seeing the impact of several macroeconomic factors that are slowing down sales. Affordability remains a major issue for the people we serve so we call on development partners to double down on their support for the off-grid solar sector. We need to work together and scale to achieve our projected impact and power 1 billion lives by 2030,” commented Sarah Malm, Executive Director of GOGLA.
Key takeaways:
- Today, 116 million people benefit from improved access to energy through off-grid solar energy kits from GOGLA affiliates and close to 15 million are benefiting from improved access to appliances.
- To date, solar energy kits have avoided 109 million metric tons of CO2e, the equivalent of taking 26 coal-fired power plants offline for a year.
- 6 million solar energy kits were sold in the second half of 2023, a 7% increase compared to the first half of the year (which historically tends to be weaker) and 11% lower than the second half of 2022.
- Aggregated sales of key off-grid appropriate appliances (TVs, fans, refrigeration units, and solar water pumps) reached 1.79 million units in 2023, up from 1.53 million units sold in 2022. 70% of units reported are fans, 28% are TVs, 2% are solar water pumps and less than 1% are fridges.
“Despite global challenges, off-grid solar companies saw year-on-year growth in sales of energy-efficient appliances. This reflects sector resilience but also underscores the need for increased support and investment to drive further impact on people’s lives and livelihoods,” Jakub Vrba, Senior Research Lead at Efficiency for Access, said.
* You can access the full Global Off-Grid Solar Market Report Semi-Annual Sales and Impact Data July-December 2023 here.