Off-Grid Solar Market Trends

The lowering cost of solar PV and batteries boost the market growth

The fundamental driver of the off-grid solar business is the decreasing cost of solar PV and batteries. In 2020, the price of a solar PV module will have dropped by almost 70% compared to 2010. This will almost likely benefit the off-grid solar energy business as it grows. 

The fundamental driver of the off-grid solar business is the decreasing cost of solar PV and batteries. The residential category is expected to grow at the fastest rate during the projected period due to an increase in construction activities in the residential sector.

The market for off-grid solar PV panels is expected to increase until 2030 as a result of major suppliers and vendors luring owners with long-term contracts that include routine maintenance and repair of the panels. Thus, driving the off-grid solar market revenue.

For instance, Schneider Electric is always developing cutting-edge technology to support the market expansion of the solar power sector. The lighting Kenya program aided the development of an off-grid market in the nation. characterized by a variety of business models and companies.

Their installation price and area requirement are two important factors that pose difficulties for the anticipated growth. It is an expensive system compared to on-gird solar systems that directly connects to the utility power grid to produce electricity utilizing solar power. 

Compared to off-grid solar systems, these systems are best suited when there is a significant demand for electricity or when a desire to lower electricity costs. Businesses usually rely on on-grid solar systems to meet their daily needs because one day of strong sunshine is sufficient to run all of their equipment, including lights, appliances, water heating systems, and other necessities. The market CAGR is being constrained by several issues.

The Global Off-Grid Solar Market Industry is experiencing a surge in energy demand, particularly in remote and rural areas where traditional energy infrastructure is lacking. As populations grow and urbanization increases, the need for reliable energy sources becomes critical. In 2024, the market is valued at approximately 2.74 USD Billion, reflecting the urgent need for sustainable energy solutions. Off-grid solar systems provide an effective alternative, enabling communities to access electricity without relying on centralized grids. This trend is likely to continue, as energy demand is projected to rise significantly, driving investments in off-grid solar technologies.

The Global Off-Grid Solar Market Industry is poised for substantial growth, with projections indicating a market value of 9.23 USD Billion by 2035. This anticipated growth is driven by various factors, including rising energy demand, government support, and technological advancements. The market is currently valued at 2.74 USD Billion in 2024, showcasing its potential for expansion. The compound annual growth rate (CAGR) of 11.67% from 2025 to 2035 further underscores the optimism surrounding off-grid solar solutions. As more stakeholders recognize the benefits of off-grid solar technologies, the market is likely to attract increased investments and innovation.

Technological advancements are significantly influencing the Global Off-Grid Solar Market Industry. Innovations in solar panel efficiency, battery storage, and smart grid technologies are enhancing the performance and affordability of off-grid solar systems. For example, the development of high-capacity lithium-ion batteries allows for better energy storage, enabling users to harness solar energy even during non-sunny periods. These advancements not only improve the reliability of off-grid solar solutions but also reduce costs, making them more accessible to a broader audience. As technology continues to evolve, it is expected that the market will witness accelerated growth, potentially reaching 9.23 USD Billion by 2035.

Economic growth in emerging markets is a significant driver of the Global Off-Grid Solar Market Industry. As economies develop, there is an increasing demand for energy to support industrialization and improve living standards. Many emerging economies lack robust energy infrastructure, making off-grid solar solutions an attractive option for energy access. The projected compound annual growth rate (CAGR) of 11.67% from 2025 to 2035 indicates a strong market potential in these regions. Investments in off-grid solar technologies are likely to rise, as they provide a viable means to meet the energy needs of growing populations and stimulate economic development.

Government initiatives play a pivotal role in the expansion of the Global Off-Grid Solar Market Industry. Many countries are implementing policies that promote renewable energy adoption, including financial incentives, subsidies, and tax breaks for off-grid solar installations. These measures aim to enhance energy access, particularly in underserved regions. For instance, various governments have set ambitious renewable energy targets, which include substantial contributions from off-grid solar solutions. Such supportive regulatory frameworks are likely to catalyze market growth, as they create a conducive environment for investment and innovation in off-grid solar technologies.

Increasing awareness of environmental issues and the need for sustainable energy solutions are driving the Global Off-Grid Solar Market Industry. As climate change concerns escalate, there is a growing emphasis on reducing carbon footprints and transitioning to renewable energy sources. Off-grid solar systems offer a clean alternative to fossil fuels, contributing to lower greenhouse gas emissions. This shift towards sustainability is prompting both consumers and businesses to invest in off-grid solar technologies. The market is likely to benefit from this trend, as more stakeholders recognize the importance of sustainable energy practices in combating climate change.

Major market companies are investing a lot of money in R&D to expand their product offerings, which will spur further growth in the off-grid solar market. With significant market developments like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking a variety of strategic activities to expand their presence. Off-grid solar market competitors must provide affordable products in order to grow and compete in a market that is becoming more and more competitive.

Manufacturing locally to cut operating costs is one of the main business tactics used by manufacturers in the off-grid solar industry to serve customers and grow the market sector. Some of the most important advantages for medicine recently have come from the off-grid solar industry.

The major players in the off-grid solar market, including Hanwha Group (South Korea), M-KOPA Kenya (Kenya), Delta Electronics Inc. (Taiwan), Jinko Solar Holding Co. Ltd. (China), SunPower Corporation (U.S.), ABB (Switzerland), and others, are working to increase market demand by funding research and development initiatives.

Tata Power Solar Systems Limited, formerly Tata BP Solar, is an Indian company that specialises in solar energy services. The company manufactures solar modules, solar cells, and other solar products, and provides EPC services for solar power projects. In October 2022, Tata Power Solar Systems announced the debut of cost-efficient solar off-grid solutions in West Bengal, Bihar, and Jharkhand.

The off-grid solutions come in 11 variations ranging from 1 to 10 KW and come with a 5-year warranty. They combine highly efficient solar modules, inverters, and batteries. LONGi Green Energy Technology Co. Ltd., formerly Xi'an Longi Silicon Materials Corporation, is a Chinese photovoltaics company that is a significant manufacturer of solar modules and a project developer for solar power.

LONGi, which is listed on the Shanghai Stock Exchange, is the world's largest maker of monocrystalline silicon wafers. In November 2022, LONGi Solar Technology Co., Ltd. announced the completion of the delivery of 406MW of its bifacial PV panels Hi-MO 5 for the Solar plant established by PowerChina SEPCO III for Saudi Arabia's Red Sea Solar PV Project in November 202. The Red Sea Facility, the world's largest off-grid energy storage project, features 400MW of solar PV.