Off-Grid Solar Energy Market Size
| Study Period | 2020 - 2029 |
| Market Volume (2024) | 9.13 gigawatt |
| Market Volume (2029) | 13.12 gigawatt |
| CAGR (2024 - 2029) | 7.51 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia-Pacific |
Major Players.webp){kind=logo}
*Disclaimer: Major Players sorted in no particular order |
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Off-Grid Solar Energy Market Analysis
The Off-Grid Solar Energy Market size is estimated at 9.13 gigawatt in 2024, and is expected to reach 13.12 gigawatt by 2029, growing at a CAGR of 7.51% during the forecast period (2024-2029).
COVID-19 negatively impacted the market in 2020. Presently the market is likely to reach pre-pandemic levels.
- Over the long term, factors like decreasing the price of solar panels and batteries are expected to drive the market.
- On the other hand, high installation costs and poor maintenance practices hinder the market's growth.
- Nevertheless, nations like the United States, the United Kingdom, Germany, China, India, and others have set up ambitious targets to increase the renewable share in their energy mix. Governments across these nations have also planned to increase the renewable energy share by deploying residential and off-grid solar PV systems in the coming years. These are expected to create enormous opportunities for the off-grid solar energy market.
- Middle-East and Africa region is expected to dominate the market growth primarily due to the increasing demand for electricity due to the lack of a central grid and reliable electricity supply, mainly in the African region.
Off-Grid Solar Energy Market Trends
This section covers the major market trends shaping the Off-Grid Solar Energy Market according to our research experts:
Residential Segment Expected to Dominate the Market
- The off-grid solar system has been gaining popularity in recent years for the residential sector as it is self-sustaining. Although installing off-grid systems and associated parts is relatively expensive, the consumer becomes more self-reliant and is unaffected by power shortages due to grid failures and shutdowns.
- As of 2021, the global off-grid installed capacity was at 5.51 GW compared to 5.13 GW in 2020, registering a growth rate of almost 7.5%. This growth rate is expected to increase during the forecasted period.
- Moreover, the off-grid system provides power solutions to remote areas where grid connectivity is a major restraint in the region's electrification. Mainly end-users from residential sectors are present in those areas. Off-grid solar systems can facilitate independent and sustainable electricity generation.
- During the forecast period, the demand for off-grid solar systems is expected to increase on account of decreasing solar PV costs, supportive government policies for residential solar PV, FIT programs and incentives, and targets set by various governments for solar energy.
- The cost reductions are driven by continuous technological improvements, including higher solar PV module efficiencies. The industrialization of these highly modular technologies has yielded impressive benefits, from economies of scale and greater competition to improved manufacturing processes and competitive supply chains.
Middle-East and Africa Expected to Dominate the Market Growth
- The demand for off-grid solar systems is expected to witness significant growth in the Middle East and Africa, mainly because these countries primarily generate electricity from fossil fuels. These fossil fuels generate carbon emissions that pollute the environment.
- The increasing pressure of reducing carbon emissions and the high solar energy potential in most of the countries in these regions is expected to make way for the off-grid solar energy system. The unreliable power distribution system in many countries has increased the demand for off-grid solar systems.
- Historically, the region has relied on diesel generators for electricity supply. Still, recently there has been a significant shift towards solar energy mainly due to declining prices of solar panels and solar inverters in recent years. According to the World Bank, an estimated 600 million Africans have no access to electricity. Given the high cost of extending transmission lines into remote areas, off-grid solar has witnessed a significant rise in the region.
- For instance, in September 2022, German sustainability energy service provider Kowry Energy announced the successful commissioning of decentralized solar systems in three countries of West Africa. Kowry Energy has designed and commissioned four off-grid solar energy systems in Senegal, Nigeria, and Mali. The recently installed projects are the first of several forming portfolios in these countries that will be completed within three years.
Off-Grid Solar Energy Industry Overview
The Off-grid solar energy market is fragmented. Some of the key players in the market (in no particular order) include ABB Ltd, Canadian Solar Inc., JinkoSolar Holding Co., Ltd, SunPower Corporation, and Trina Solar Ltd, among others.
Off-Grid Solar Energy Market Leaders
ABB Ltd
Canadian Solar Inc.
JinkoSolar Holding Co., Ltd
SunPower Corporation
Trina Solar Ltd
*Disclaimer: Major Players sorted in no particular order
Off-Grid Solar Energy Market News
- In November 2022, LONGi Solar Technology Co., Ltd. announced the delivery completion of 406MW of its bifacial PV panels Hi-MO 5, for the Solar plant developed by PowerChina SEPCO III for Saudi Arabia's Red Sea Solar PV Project. The Red Sea Project includes 400MW of solar PV and is the world's largest off-grid energy storage project.
- In October 2022, Tata Power Solar Systems announced the launch of cost-efficient solar off-grid solutions in West Bengal, Bihar, and Jharkhand. The off-grid solutions provide a combination of high-efficient solar modules, inverters, and batteries and are available in 11 variants ranging from 1 - 10 KW with a 5-year warranty.
- In September 2022, Clean energy solutions provider Servotech Power Systems announced that it had bagged a 1.8 MW off-grid solar project from the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). The project will see Servotech perform key responsibilities such as undertaking empanelling and rate contracts for designing, manufacturing, supply, erection, testing, and commissioning of off-grid solar plants throughout Uttar Pradesh.
Off-Grid Solar Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
4.8 Assesment of Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 End-User
5.1.1 Residential
5.1.2 Commercial and Industrial
5.2 Geography [Market Size and Demand Forecast till 2028 (for regions only)]
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.1.3 Rest of North America
5.2.2 Europe
5.2.2.1 Germany
5.2.2.2 France
5.2.2.3 Italy
5.2.2.4 Norway
5.2.2.5 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 China
5.2.3.2 India
5.2.3.3 South Korea
5.2.3.4 Japan
5.2.3.5 Rest of Asia-Pacific
5.2.4 Middle East and Africa
5.2.4.1 Saudi Arabia
5.2.4.2 Qatar
5.2.4.3 South Africa
5.2.4.4 Rest of Middle East and Africa
5.2.5 South America
5.2.5.1 Brazil
5.2.5.2 Argentina
5.2.5.3 Chile
5.2.5.4 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 ABB Ltd
6.3.2 Schneider Electric Infrastructure Ltd
6.3.3 Canadian Solar Inc.
6.3.4 JinkoSolar Holding Co., Ltd
6.3.5 SunPower Corporation
6.3.6 Trina Solar Ltd
6.3.7 LONGi Green Energy Technology Co. Ltd
6.3.8 JA Solar Holding
6.3.9 Sharp Corporation
6.3.10 Tesla Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Off-Grid Solar Energy Industry Segmentation
Off-grid systems operate independently of the power grid but include batteries that can store the solar energy generated by the device. Solar panels, a battery, a charge controller, a grid box, an inverter, a mounting framework, and a system balance are typically included in the system. The panels collect enough sunlight during the day and utilize the excess power created at night to generate electricity.
The off-grid solar energy market is segmented by End-User and Geography. By End-User, the market is segmented into Residential, Commercial, and Industrial. The report also covers the market size and forecasts for the off-grid solar energy market across major countries in North America, Asia-Pacific, Europe, South America, and the Middle-East and Africa. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
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Off-Grid Solar Energy Market Research FAQs
How big is the Off-Grid Solar Energy Market?
The Off-Grid Solar Energy Market size is expected to reach 9.13 gigawatt in 2024 and grow at a CAGR of 7.51% to reach 13.12 gigawatt by 2029.
What is the current Off-Grid Solar Energy Market size?
In 2024, the Off-Grid Solar Energy Market size is expected to reach 9.13 gigawatt.
Who are the key players in Off-Grid Solar Energy Market?
ABB Ltd, Canadian Solar Inc., JinkoSolar Holding Co., Ltd, SunPower Corporation and Trina Solar Ltd are the major companies operating in the Off-Grid Solar Energy Market.
Which is the fastest growing region in Off-Grid Solar Energy Market?
Middle East and Africa is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Off-Grid Solar Energy Market?
In 2024, the Asia-Pacific accounts for the largest market share in Off-Grid Solar Energy Market.
What years does this Off-Grid Solar Energy Market cover, and what was the market size in 2023?
In 2023, the Off-Grid Solar Energy Market size was estimated at 8.49 gigawatt. The report covers the Off-Grid Solar Energy Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Off-Grid Solar Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Off-Grid Solar Industry Report
Statistics for the 2024 Off-Grid Solar market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Off-Grid Solar analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
