Global Off-Grid Solar Energy Market Size and Share Analysis 2023-2028
- Market Report
- ID: PEE309GM
- Delivery Time: 1 Business Day
- Tag: Off-Grid Solar Energy
Market Overview
The Off-Grid Solar Energy Market is projected to experience substantial growth during the forecast period from 2023 to 2028, with an expected increase in capacity from 8,491 megawatts in 2023 to 12,195 megawatts by 2028, at a compounded annual growth rate (CAGR) of 7.51%.
Off-grid systems function independently of the power grid and incorporate batteries to store the solar energy generated. Typically, these systems include solar panels, batteries, charge controllers, grid boxes, inverters, mounting frameworks, and system balances. The solar panels collect sunlight during the day and utilize any excess power generated to produce electricity during the night.
Product Type | Market Report |
---|---|
No. of Pages | 176 |
Release Date | April 2023 |
Base Year | 2022 |
Forecast Period | 2023-2028 |
Market Size | 7.9 GW in 2021 |
Market Segments | End-User and Geography |
Region | Global |
No. of Companies Mentioned | 10 |
The COVID-19 pandemic had a negative impact on the market in 2020. However, the market is currently expected to recover and reach pre-pandemic levels.
In the long term, the decreasing prices of solar panels and batteries are anticipated to drive the market. Conversely, high installation costs and inadequate maintenance practices impede market growth.
Nevertheless, countries such as the United States, the United Kingdom, Germany, China, India, and others have established ambitious targets to increase the proportion of renewable energy in their energy mix. Governments in these countries have also planned to deploy residential and off-grid solar PV systems to augment the share of renewable energy in the forthcoming years. These initiatives are expected to create significant opportunities for the off-grid solar energy market.
The Middle East and Africa region is poised to dominate the market’s growth, primarily due to the increasing demand for electricity caused by the absence of a centralized grid and reliable power supply, particularly in the African region.
Market Segmentation
The market is segmented based on various factors, including end-user and geography.
Segmentation by End-User
Residential
Commercial and Industrial
Segmentation by Geography
North America – United States, Canada, and Rest of North America
Europe – Germany, France, Italy, Norway, and Rest of Europe
Asia-Pacific – China, Japan, India, South Korea, and Rest of Asia-Pacific
Latin America – Brazil, Argentina, Chile, and Rest of Latin America
Middle East and Africa – Saudi Arabia, South Africa, Qatar, and Rest of Middle East and Africa
The popularity of off-grid solar systems has been steadily increasing in the residential sector due to their self-sustaining nature. While the initial installation costs for these systems and their associated components may be relatively high, consumers benefit from greater self-reliance and immunity to power shortages resulting from grid failures and shutdowns.
As of 2021, the global installed capacity of off-grid solar systems reached 5.51 GW, compared to 5.13 GW in 2020, indicating a growth rate of nearly 7.5%. This growth rate is projected to rise further during the forecasted period.
Furthermore, off-grid systems offer power solutions to remote areas where grid connectivity poses a significant constraint on electrification efforts. These areas are primarily occupied by residential end-users. Off-grid solar systems enable independent and sustainable electricity generation.
During the forecast period, the demand for off-grid solar systems is expected to escalate due to decreasing costs of solar PV, supportive government policies for residential solar PV, feed-in tariff programs, incentives, as well as solar energy targets established by various governments. The continuous technological advancements leading to higher efficiencies in solar PV modules have contributed to cost reductions. The industrialization of modular technologies has yielded benefits such as economies of scale, increased market competition, enhanced manufacturing processes, and competitive supply chains.
There is anticipated substantial growth in the demand for off-grid solar systems in the Middle East and Africa, primarily because these regions heavily rely on fossil fuels for electricity generation. The carbon emissions associated with these fossil fuels contribute to environmental pollution.
The rising pressure to reduce carbon emissions combined with the significant solar energy potential in many countries within these regions is expected to drive the adoption of off-grid solar energy systems. The unreliable power distribution systems prevalent in several countries have further intensified the demand for off-grid solar systems.
Traditionally, the region has heavily depended on diesel generators for electricity supply. However, there has been a notable shift toward solar energy in recent years, primarily due to declining prices of solar panels and inverters. According to the World Bank, approximately 600 million Africans lack access to electricity. Given the high costs associated with extending transmission lines into remote areas, off-grid solar has experienced significant growth in the region.
For example, in September 2022, Kowry Energy, a German sustainability energy service provider, announced the successful commissioning of decentralized solar systems in three West African countries. Kowry Energy has designed and installed four off-grid solar energy systems in Senegal, Nigeria, and Mali. These recently completed projects are the first among several portfolios planned for these countries, which will be finalized within the next three years.
Competitive Landscape
The Off-grid solar energy market exhibits fragmentation, with several prominent players operating within the industry. Among these key players, listed in no specific order, are ABB Ltd, Canadian Solar Inc., JinkoSolar Holding Co., Ltd, SunPower Corporation, and Trina Solar Ltd, among other participants.
Key companies profiled in this report include Abb Ltd, Schneider Electric SE, Canadian Solar Inc., Jinkosolar Holding Co. Ltd, Sunpower Corporation, Trina Solar Co., Ltd., Longi Green Energy Technology Co., Ltd., Ja Solar Technology Co. Ltd, Sharp Corporation, Tesla Inc.
Recent Industry Developments
In November 2022, LONGi Solar Technology Co., Ltd. completed the delivery of 406MW of its bifacial PV panels Hi-MO 5 for the Solar plant developed by PowerChina SEPCO III as part of Saudi Arabia’s Red Sea Solar PV Project. This project, with a capacity of 400MW, is the world’s largest off-grid energy storage project.
In October 2022, Tata Power Solar Systems introduced cost-efficient solar off-grid solutions in West Bengal, Bihar, and Jharkhand. These solutions combine high-efficiency solar modules, inverters, and batteries, and are available in 11 different models ranging from 1 to 10 KW, all backed by a 5-year warranty.
In September 2022, Servotech Power Systems, a provider of clean energy solutions, secured a 1.8 MW off-grid solar project from the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). Under this project, Servotech will undertake various responsibilities including empanelment and rate contracts, designing, manufacturing, supply, erection, testing, and commissioning of off-grid solar plants across Uttar Pradesh.
Key Questions Answered
What is the duration of the study period for this market?
What is the growth rate of the Off-Grid Solar Energy Market?
What is the size of the Off-Grid Solar Energy Market?
Which region exhibits the highest growth rate in the Off-Grid Solar Energy Market?
Which region holds the largest share in the Off-Grid Solar Energy Market?
Who are the key players in the Off-Grid Solar Energy Market?
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