Off-grid solar is emerging as a least-cost solution for expanding electricity access, supporting rural livelihoods, creating employment, and strengthening economic growth, according to the Off-Grid Solar Market Trends Report 2026 released by the World Bank Group’s Energy Sector Management Assistance Program (ESMAP) and GOGLA, the global off-grid solar association.
The report was released at the Global Off-Grid Solar Forum and Expo in Kigali. It highlights the growing role of off-grid solar technologies, including solar home systems, water pumps, generators and lanterns, in providing electricity to households, businesses and essential services. The number of people using these products increased by 26% over the past two years, rising from 118 million in 2023 to 149 million in 2025.
According to the report, off-grid solar represents the least-cost electricity solution for at least 398 million people who currently lack access to electricity. These systems can provide reliable power to remote communities beyond the reach of conventional electricity networks while complementing investments in grid expansion and mini-grids.
The report also highlights the growing reliability of solar home systems. Around 95% of surveyed customers reported that their systems remained functional four or more years after purchase, demonstrating the technology’s ability to deliver long-term electricity access.
The sector is also contributing to employment and economic development. An estimated 7.4 million people use off-grid solar to operate microenterprises or support income-generating activities across agriculture, retail and services. Over the past 15 years, these products have generated approximately USD 28 billion in additional income and savings for customers.
Employment in the surveyed off-grid solar market has reached 219,000 people, representing a 29% increase between 2021 and 2025. Most employment opportunities are generated through local agents and technicians who distribute, install, and maintain solar products in the communities they serve.
Despite these developments, affordability remains a major challenge. The report estimates that only one-third of households without electricity can afford an entry-level Tier 1 solar home system through pay-as-you-go financing. Another one-third can afford such systems with financial difficulty, leaving a significant population dependent on additional support.
To address this gap, the report recommends policy measures such as value-added tax exemptions, import duty waivers, and targeted subsidies to reduce product costs and improve affordability. It also calls for stronger public and private investment to accelerate market development.
The report estimates that approximately USD 11.4 billion will be required between 2027 and 2030 to achieve the sector’s potential. This includes USD 1.3 billion annually in grants and affordability subsidies, alongside USD 1.6 billion annually in equity, debt and receivables financing.
The findings also highlight the importance of off-grid solar in achieving Mission 300, an initiative led by the World Bank Group and African Development Bank to connect 300 million people to electricity across sub-Saharan Africa by 2030. Around 80% of the 35 National Energy Compacts developed under the initiative include distributed renewable energy in their electricity connection targets.
World Bank Group commitments to off-grid solar reached USD 974 million in FY2025–26, matching the funding level recorded in FY2023–24.
GOGLA Executive Director Sarah Malm emphasised that off-grid solar has become essential economic infrastructure, supporting agriculture, healthcare and rural businesses. ESMAP Manager Fanny Missfeldt-Ringius also highlighted its contribution to energy security, resilience, affordability and employment.
The report concludes that sustained investment, supportive government policies and improved financing mechanisms will be essential to expand off-grid solar and accelerate electricity access by 2030.
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