Off-Grid Solar Could Power 398m More People by 2030 – Report
The report, titled Off-Grid Solar Market Trends Report 2026, said the number of people using off-grid solar products, including solar home systems, water pumps, generators and lanterns, increased by 26 per cent over two years, from 118 million in 2023 to 149 million in 2025.
Released on Tuesday at the Global Off-Grid Solar Forum and Expo in Kigali, Rwanda, the report highlighted the growing role of off-grid solar in providing electricity to households, businesses, farms, schools and healthcare facilities, particularly in communities beyond the reach of conventional electricity grids.
It noted that approximately 655 million people worldwide still lack access to electricity, making off-grid solar an important component of efforts to expand energy access.
According to the report, reaching the 398 million people for whom off-grid solar represents the least-cost electricity solution by 2030 will require sustained public and private investment, alongside policies that improve affordability and access to financing.
The report also described off-grid solar as essential infrastructure rather than merely a temporary solution pending the expansion of national electricity grids.
It said the technology provides a secure, resilient and affordable source of electricity while complementing investments in grid expansion and mini-grids.
On the reliability of the technology, the report found that 95 per cent of surveyed customers said their solar home systems remained functional four or more years after purchase.
Commenting on the findings, GOGLA Executive Director, Sarah Malm, said off-grid solar had demonstrated its ability to deliver electricity at scale, including in communities that conventional grids had not reached.
She said the technology was supporting agricultural production, keeping healthcare facilities operational and powering businesses in rural communities.
However, Malm warned that financing had not kept pace with the sector’s growing responsibilities, calling on governments, investors and development partners to recognise off-grid solar as critical infrastructure.
The report also identified the sector as an important driver of employment, income generation and enterprise development.
It estimated that 7.4 million people use off-grid solar to power microenterprises or support income-generating activities in agriculture, retail and other services.
Over the past 15 years, the products have generated an estimated $28bn in additional income and savings for customers.
Employment in the surveyed off-grid solar market also increased by 29 per cent between 2021 and 2025, reaching 219,000 people, most of whom work as agents and technicians in the communities they serve.
Despite these gains, affordability remains a major obstacle to expanding electricity access.
The report found that only one-third of households without electricity could afford an entry-level solar home system through pay-as-you-go financing, while another third could afford one only with difficulty.
It recommended measures such as value-added tax exemptions, import duty waivers and targeted subsidies to reduce costs and make off-grid solar products more accessible to underserved populations.
The report estimated that unlocking the sector’s potential to connect hundreds of millions of people to reliable electricity by 2030 would require approximately $11.4bn in investment between 2027 and 2030.
This would comprise $1.3bn annually in grants and affordability subsidies, alongside $1.6bn annually in equity, debt and receivables financing.
The investment would support efforts to scale up off-grid solar deployment and improve access to electricity for underserved communities.
The findings come as countries advance Mission 300, an initiative of the World Bank Group and the African Development Bank aimed at connecting 300 million people to electricity across sub-Saharan Africa by 2030.
According to the report, 80 per cent of the 35 National Energy Compacts developed under Mission 300 include distributed renewable energy in their electricity connection targets.
Meanwhile, 70 per cent of the compacts include fiscal incentives for distributed renewable energy.
World Bank Group commitments to off-grid solar reached $974m in the 2025–2026 financial year, matching the level recorded in 2023–2024.
Fanny Missfeldt-Ringius, Manager of the Energy Sector Management Assistance Program at the World Bank Group, said off-grid solar had evolved from a basic lighting solution into a critical electricity source for hundreds of millions of people.
She said the institution remained committed to expanding financing mechanisms that attract private investment and support governments in delivering sustainable energy access through national energy plans.
The report said greater investment, improved financing and supportive government policies would be necessary to expand off-grid solar adoption and help close the electricity access gap by 2030.
