Off-Grid Solar Energy Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 7.32 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
Off-Grid Solar Energy Market Analysis
The Off-Grid Solar Energy Market size is estimated at 11.40 gigawatt in 2024, and is expected to reach 16.23 gigawatt by 2029, growing at a CAGR of 7.32% during the forecast period (2024-2029).
- 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.
- However, countries like the United States, the United Kingdom, Germany, China, and India have set 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.
- Asia-Pacific 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 India and China.
Off-Grid Solar Energy Market Trends
The Commercial and Industrial Segments are Expected to Dominate the Market
- The usage of off-grid solar energy systems in the commercial and industrial segments has been mainly driven by small and medium enterprises in regions with unreliable electricity supply by the central grid system. Battery-integrated off-grid solar systems have become an effective and cheaper method of power backup for commercial and industrial entities compared to diesel generators.
- As of 2023, the global off-grid installed capacity was at 4.96 GW compared to 4.55 GW in 2022, registering a growth rate of almost 9.01%. This growth rate is expected to increase during the forecast period.
- Off-grid solar systems have many advantages for the commercial and industrial segments in terms of no hassle of diesel supply chain delays, less noise and pollution, and favorable government policies and subsidies.
- In addition, once the power is cut off and production is disrupted in several industrial entities, it may take hours to bring the systems and equipment back online, leading to huge downtime and financial losses. Therefore, electricity backup is extensively used in the industrial segment.
- Moreover, with the ongoing Israel-Gaza war, the electricity grid swiftly collapsed after the start of the war, leaving hospitals dependent on diesel generators. With only limited supplies of fuel permitted to pass through the Israeli blockade, it soon became almost impossible to carry out operations and deliver essential healthcare services.
- However, off-grid renewable systems, particularly solar panels combined with battery storage, can be a game changer for the healthcare industry. Off-grid solar offers the promise of bringing power to facilities still out of reach of electricity grids while providing a more efficient and reliable backup supply in urban hospitals.
- As mentioned above, the commercial and industrial segments will dominate the market during the forecast period.
Asia-Pacific to Dominate the Market Growth
- In recent years, there has been a steady increase in solar PV installation in the residential and commercial segments. This is due to reduced capital costs for solar projects and increased competition among competitors as the segments mature.
- China is the world's largest photovoltaics and solar thermal energy market. In 2023, the country had a total installed capacity of 609 GW of solar energy.
- Accordingly, by 2023, the existing residential or commercial buildings were required to install a rooftop solar PV system. Under the government's mandate, a minimum percentage of buildings will be essential to install solar PV systems. The solar PV rooftop systems need to be installed on government buildings (at least 50%), public structures (40%), commercial buildings (30%), and rural buildings (20%) across approximately 676 counties.
- Solar power is a fast-developing industry in India. The country's solar installed capacity was 73.10 GW as of December 31, 2023. Solar power generation in India ranked fourth globally in 2023.
- Due to the rise of industrial activity in India, the demand for clean electricity is increasing to mitigate carbon emissions. As a result, rooftop solar installations would provide a robust option for enterprises to become self-reliant, which is expected to increase the rooftop solar market in India.
- Under the National Solar Mission (NSM), a target of 2 GW was kept for off-grid solar PV applications. During Phase I of the mission (2010-2013), the target was 200 MWp, but 253 MWp was sanctioned. In Phase II (2013-2017), the target was 500 MWp, but 713 MWp was sanctioned. Under Phase III of the Off-grid and Decentralised Solar PV Applications Program, a target of 118 MW has been kept, excluding solar pumps to be installed under the PM KUSUM Scheme and solar home lights taken up under the ‘Saubhagya’ Scheme of the Ministry of Power.
- In January 2023, the country’s Ministry of Trade, Industry, and Energy (MOTIE) approved a long-awaited scheme for solar module recycling. The new regulations set up a uniform system for collecting data in the main regions of each country. It aims to ensure a waste panel recycling/reuse rate of more than 80%, which aligns with current EU levels. Such government schemes are expected to lower the prices of solar panels further in the country, thus making it feasible to use them with different off-grid products.
- Therefore, owing to the above points, declining solar PV prices and increasing energy prices in the region are expected to drive the market during the forecast period. Also, supportive policies and incentives from the government will help the off-grid solar energy market to realize its full potential in the coming 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.
Off-Grid Solar Energy Market Leaders
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ABB Ltd
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Canadian Solar Inc.
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JinkoSolar Holding Co., Ltd
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SunPower Corporation
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Trina Solar Ltd
*Disclaimer: Major Players sorted in no particular order
Off-Grid Solar Energy Market News
- April 2024: After a combined investment of USD 15,841,000 from the federal and provincial governments, a new solar energy project would provide the Ulkatcho First Nation with clean energy. The project is set to decrease the need for diesel generation in the remote community by about 64%, equal to a reduction of 1.1 million liters of diesel annually. It is estimated to be one of Canada's largest off-grid solar projects.
- January 2024: The President of India approved the implementation of a new solar power scheme for vulnerable tribal groups (PVTG) habitations/villages from 2023-2024 to 2025-2026. The scheme would be implemented under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN). Under the scheme, off-grid solar systems would electrify about 100,000 un-electrified households in PVTG areas where electricity supply through the grid is not techno-economically feasible.
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 Installed Capacity and Forecast, till 2029
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Falling Costs and Rising Efficiencies of Solar Photovoltaic Panels
- 4.5.2 Restraints
- 4.5.2.1 High Installation And Maintenance Costs
- 4.6 Supply Chain Analysis
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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
5. MARKET SEGMENTATION
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5.1 End-User
- 5.1.1 Residential
- 5.1.2 Commercial and Industrial
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5.2 Geography [Market Size and Demand Forecast till 2029 (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 United Kingdom
- 5.2.2.5 Spain
- 5.2.2.6 NORDIC
- 5.2.2.7 Turkey
- 5.2.2.8 Russia
- 5.2.2.9 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 Malaysia
- 5.2.3.6 Thailand
- 5.2.3.7 Indonesia
- 5.2.3.8 Vietnam
- 5.2.3.9 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 United Arab Emirates
- 5.2.4.5 Nigeria
- 5.2.4.6 Oman
- 5.2.4.7 Egypt
- 5.2.4.8 Algeria
- 5.2.4.9 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 Colombia
- 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
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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
- 6.4 List of Other Prominent Companies (Company Name, Headquarters, Revenue, Relevant Products and Services, Operating Sector, Recent Trends, Technology or Projects, Contact Details, etc.) (In Brief Tabular Format)
- 6.5 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Technological Advancements in Solar PV Manufacturing
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 market sizes and forecasts for the off-grid solar energy market across major regions. The market sizing and forecasts for each segment are based on revenue (USD).
| End-User | Residential | |
| Commercial and Industrial | ||
| Geography [Market Size and Demand Forecast till 2029 (for regions only)] | North America | United States |
| Canada | ||
| Rest of North America | ||
| Geography [Market Size and Demand Forecast till 2029 (for regions only)] | Europe | Germany |
| France | ||
| Italy | ||
| United Kingdom | ||
| Spain | ||
| NORDIC | ||
| Turkey | ||
| Russia | ||
| Rest of Europe | ||
| Geography [Market Size and Demand Forecast till 2029 (for regions only)] | Asia-Pacific | China |
| India | ||
| South Korea | ||
| Japan | ||
| Malaysia | ||
| Thailand | ||
| Indonesia | ||
| Vietnam | ||
| Rest of Asia-Pacific | ||
| Geography [Market Size and Demand Forecast till 2029 (for regions only)] | Middle East and Africa | Saudi Arabia |
| Qatar | ||
| South Africa | ||
| United Arab Emirates | ||
| Nigeria | ||
| Oman | ||
| Egypt | ||
| Algeria | ||
| Rest of Middle East and Africa | ||
| Geography [Market Size and Demand Forecast till 2029 (for regions only)] | South America | Brazil |
| Argentina | ||
| Colombia | ||
| Rest of South America |
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 11.40 gigawatt in 2024 and grow at a CAGR of 7.32% to reach 16.23 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 11.40 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 10.57 gigawatt. The report covers the Off-Grid Solar Energy Market historical market size for years: 2019, 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
The global off-grid solar energy market is experiencing significant growth, driven by increasing demand across various end-user segments, including residential, commercial, and industrial sectors. The market is segmented by geography, covering North America, Asia-Pacific, Europe, South America, and the Middle East and Africa. This segmentation helps in understanding the market trends and growth patterns across different regions.
Industry reports indicate that the market size and share of off-grid solar energy are expanding, with a positive market forecast outlook. The market analysis reveals that key market leaders are driving this growth through innovative solutions and strategic market research. The industry overview highlights the market growth and the increasing adoption of off-grid solar systems due to their cost-effectiveness and environmental benefits.
According to industry analysis, the market value of off-grid solar energy is expected to rise, supported by favorable market trends and industry statistics. The industry outlook is optimistic, with market predictions pointing towards sustained growth. The market segmentation by end-user and geography provides detailed insights into the market dynamics and potential opportunities for stakeholders.
The market report includes comprehensive industry information, such as market data, market review, and market segmentation. The report pdf available for download offers an in-depth understanding of the market size, industry size, and industry sales. Research companies have contributed valuable insights into the market outlook, helping to shape the industry trends and market predictions.
Overall, the industry research underscores the importance of off-grid solar energy in the global energy landscape. The market forecast suggests continued growth, driven by technological advancements and increasing awareness of sustainable energy solutions. The report example provided in the industry reports serves as a valuable resource for understanding the market dynamics and future prospects of the off-grid solar energy market.
