Market Synopsis, Off-grid solar solutions have emerged as a mainstream option to increase access to renewable energy in an environmentally sustainable manner. Off-grid solar systems work independently off the power grid with the help of batteries that store solar power generated by the system. Off-grid solar systems mainly comprise four components, namely, batteries, solar panels, inverters, and controllers. These systems provide power for critical loads in areas where power grids are unavailable., The factor driving the demand for off-grid solar is the increasing share of solar energy sources in the global energy mix. The COVID-19 pandemic has deeply impacted the global demand for energy, and most sources in the global energy mix have witnessed a decline in demand. However, during this period, growth was witnessed in renewable electricity’s share of electricity supply to power grids. According to statistical data from the International Energy Agency, the demand for renewable electricity grew by 1.56% from Q1 2019 to Q1 2020. The growth is attributed to the numerous wind and solar PV projects commissioned in 2019. These energy sources are dispatched to consumers in preference to other sources of energy, as they are cleaner and cheaper in comparison to the other sources. In the renewable energy mix, the share of solar PV grew at the fastest rate in 2019 and is expected to maintain a high growth rate during the forecast period., Furthermore, according to the statistical data from the International Energy Agency, distributed solar PV accounted for 20% of the renewable capacity installed in 2019, with the majority of the end-users being individuals and small & medium enterprises. The installation of solar energy resources is expected to grow significantly during the forecast period, primarily due to the surging demand for clean energy. Thus, the increasing share of solar energy sources in the global energy mix is expected to drive the growth of the global off-grid solar market during the forecast period., Moreover, the growing adoption of off-grid solar in developing and rural areas is likely to drive the global market. According to statistical data from the World Bank, in 2018, appro

Market Synopsis

Off-grid solar solutions have emerged as a mainstream option to increase access to renewable energy in an environmentally sustainable manner. Off-grid solar systems work independently off the power grid with the help of batteries that store solar power generated by the system. Off-grid solar systems mainly comprise four components, namely, batteries, solar panels, inverters, and controllers. These systems provide power for critical loads in areas where power grids are unavailable.

The factor driving the demand for off-grid solar is the increasing share of solar energy sources in the global energy mix. The COVID-19 pandemic has deeply impacted the global demand for energy, and most sources in the global energy mix have witnessed a decline in demand. However, during this period, growth was witnessed in renewable electricity’s share of electricity supply to power grids. According to statistical data from the International Energy Agency, the demand for renewable electricity grew by 1.56% from Q1 2019 to Q1 2020. The growth is attributed to the numerous wind and solar PV projects commissioned in 2019. These energy sources are dispatched to consumers in preference to other sources of energy, as they are cleaner and cheaper in comparison to the other sources. In the renewable energy mix, the share of solar PV grew at the fastest rate in 2019 and is expected to maintain a high growth rate during the forecast period.

Furthermore, according to the statistical data from the International Energy Agency, distributed solar PV accounted for 20% of the renewable capacity installed in 2019, with the majority of the end-users being individuals and small & medium enterprises. The installation of solar energy resources is expected to grow significantly during the forecast period, primarily due to the surging demand for clean energy. Thus, the increasing share of solar energy sources in the global energy mix is expected to drive the growth of the global off-grid solar market during the forecast period.

Moreover, the growing adoption of off-grid solar in developing and rural areas is likely to drive the global market. According to statistical data from the World Bank, in 2018, approximately only 47% of the population in Sub-Saharan Africa had access to electricity. In the Sub-Saharan countries of Burundi and Madagascar, only 11% and 25% of the population has access to electricity, respectively. However, the demand for electricity from the countries in Sub-Saharan Africa and other developing regions has been growing in recent years, which is likely to boost the growth of the solar energy market during the forecast period. According to statistical data from IRENA, the installation cost of solar energy declined by 61% between 2012 and 2018. The reduced capital requirement has also propelled the demand for off-grid solar systems in such developing countries. Additionally, many solar firms have introduced financing options for their clients, through which payments for the equipment can be made in installments. This has been helpful for low-income groups in numerous countries and is driving the growth of the off-grid solar market. Due to the collaborative efforts of solar firms and government initiatives, off-grid solar installations have increased considerably in recent years. Installations have particularly increased in developing countries due to the availability of financing options for the end-users. Thus, the growing adoption of off-grid solar in developing and rural areas is expected to drive the growth of the global off-grid solar market during the forecast period.

Furthermore, the growing demand for solar energy from small & medium enterprises (SMEs) is likely to present significant opportunities for the global market. Electricity tariffs for businesses are higher in comparison to the residential sector. Moreover, due to the small scale of business operations in SMEs, purchasing electricity in bulk from utilities is not feasible. Thus, in the long-term, SMEs pay a substantial price to purchase electricity from power grids. However, the prices for off-grid solar equipment have decreased considerably in the last three to four years. Government bodies are also encouraging business owners to switch to renewable energy resources to reduce operational costs. For instance, the Government of India introduced the Jawaharlal Nehru Solar Mission in 2010, which has been encouraging business owners across India to switch to solar PV. Off-grid solar systems offer end users a long-term, independent, and sustainable source of energy.

Additionally, solar panels, in general, have a lifespan of 25 years, and users usually get their return on investment within seven to eight years, which enables the users to receive electricity free of charge for the remaining lifespan of the equipment. The numerous advantages and increasing government initiatives promoting the adoption of off-grid solar equipment by SMEs are projected to bring growth opportunities to the players operating in the global off-grid solar market during the study period.

Segmentation: Global Off-Grid Solar Market



Global Off-Grid Solar Market is segmented based on Type, Application, and Region. Based on type, the global market has been segmented into solar panels, batteries, controllers, and inverters. Based on the application, the global market has been segmented into residential and non-residential.

Geographically, Global Off-Grid Solar Market has been segmented into five major regions, namely North America, Europe, Asia-Pacific, the Middle East & Africa, and South America. Asia-Pacific is estimated to hold the largest market share during the forecast period, owing to the growing demand for solar power energy sources and increasing investments in the development of rural areas in the region. Solar energy has emerged as the best replacement for conventional energy sources and decreases carbon emissions by meeting the electricity needs in the region. In India, in August 2019, Shapoorji Pallonji And Company Private Limited (India) and ReNewPower (India) invested around USD 110 million for the development of a 150MW floating solar power project in Uttar Pradesh, India. Moreover, several government incentives, policies, and schemes favor the installation of off-grid solar equipment in the region. Such factors are expected to drive the growth of the off-grid solar market in Asia-Pacific during the forecast period.

Key Players

The Prominent Players in the Global Off-Grid Solar Market are ABB, Schneider Electric, Canadian Solar, Engie, SMA Solar Technology Ag, Jinko Solar Holding Co., Ltd., SunPower Corporation, Hanwha Group, M-KOPA Kenya, Oolu Solar, Solectria Renewables, LLC, and Delta Electronics, Inc.

The report for the global off-grid solar market by Market Research Future research covers extensive primary research. This is accompanied by a detailed analysis of qualitative and quantitative aspects by various industry experts and key opinion leaders to gain deeper insights into the market and industry performance. The report gives a clear picture of the current market scenario, which includes the historic and forecasted market sizes, in terms of value and volume, technological advancements, and macroeconomic and governing factors of the market. The report provides comprehensive information about the strategies of the top companies in the industry, along with a broad study of the different market segments and regions.

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