The Rise of Off-Grid Solar in Africa: A Lever for Rapid Electrification

With 600 million Africans without electricity, massive investments in off-grid solar are emerging as a key solution. Cheaper and quicker to deploy than national grids, this model is attracting interest from donors and governments.

Share:

Sub-Saharan Africa faces a major electrification challenge. According to the International Energy Agency (IEA), nearly 570 million people do not have access to electricity out of a total population of 1.2 billion in 2022. Faced with the budgetary constraints of states and the logistical challenges of expanding national grids, off-grid solar is emerging as an increasingly credible alternative.

Growing Investments for an Agile Solution

At a summit held in Tanzania, the World Bank and the African Development Bank announced significant financial commitments to support the development of off-grid solar. These institutions plan to mobilize between $30 billion and $40 billion for the World Bank, and $18 billion for the African Development Bank, in order to accelerate access to electricity across the continent.

Off-grid solar, which encompasses solutions ranging from photovoltaic lamps to independent mini-grids, benefits from constant improvements in terms of efficiency and costs. The falling prices of solar panels, combined with technological advances, now make it possible to power increasingly energy-consuming devices, including televisions and refrigerators.

A Competitive Alternative to National Grids

The expansion of traditional electrical grids remains a major challenge. In the Democratic Republic of the Congo (DRC), where only 21% of the population had access to electricity in 2022, according to the World Bank, extending the grid represents a colossal investment. Existing infrastructure covers a small portion of the territory, limiting access to rural and remote areas.

Even in better-equipped countries like Kenya, the national grid only covers 40% of the country, leaving a large portion of the population dependent on off-grid solar, which already accounts for 20-25% of electricity access. The rapid deployment and flexibility of these solutions make them an immediate response to the needs of populations and businesses.

An Expanding Market Amid Frequent Power Cuts

Frequent power outages in several countries increase the attractiveness of off-grid solar. In Nigeria, Africa’s largest oil producer, power cuts are common, and diesel generators remain a widespread but expensive solution. In South Africa, where the 2023-2024 energy crisis disrupted many economic sectors, the use of solar has accelerated to counter the instability of the grid.

This situation fuels demand for autonomous solutions and reduces dependence on centralized infrastructure. Many households and businesses are investing in these technologies to secure their electricity supply while optimizing their operational costs.

A Demographic and Economic Challenge

Despite these advances, the number of Africans without electricity continues to rise. Between 2010 and 2022, this figure increased from 566 million to 570 million, according to the IEA. The continent’s rapid population growth is putting constant pressure on existing energy infrastructure, while successive economic crises have hindered electrification initiatives.

The Covid-19 pandemic also contributed to slowing down grid extension projects, impacting the investment capacity of states and businesses. The combination of these factors highlights the urgency of accelerating the deployment of off-grid solutions to meet the needs of a growing population.

Facing chronic power outages, South African households are increasingly turning to solar self-generation, jeopardizing Eskom's pricing model and widening energy-access inequalities between affluent neighborhoods and disadvantaged areas.
Sol Systems has secured a $675mn credit facility to accelerate the development of 500 MW of solar and storage projects in Illinois, Ohio and Texas, backed by an international banking consortium.
The rapid rise of solar energy is disrupting Pakistan’s electricity sector, forcing the government to revise its tariff policy and introduce new taxes on solar panel imports.
Sabanci Renewables announces the acquisition of the Texan solar project Pepper from OCI Energy, strengthening its US portfolio to 660 MW and paving the way for an increase to 3 GW by 2030.
The results of recent Polish auctions reveal a predominance of photovoltaic solar, with 178 projects selected and a total capacity of 1.67 GW, while other segments found no takers.
The National Solar Energy Federation, launched on 21 June and formalised on 14 July, brings together installers, equipment suppliers and financiers to defend photovoltaics against political criticism as Paris prepares a new energy roadmap.
A $60mn subordinated loan will speed delivery of equipment for a 223 MWp solar-storage plant serving the Kamoa-Kakula copper complex, deepening the financial partnership between CrossBoundary Energy and Standard Bank South Africa.
New York developer DESRI, together with utility El Paso Electric, starts construction of the 150 MWac Santa Teresa solar complex and its 600 MWh storage system, financed by an international banking consortium.
Renewable developer Geronimo Power begins construction of the 250 MW Portage Solar park, expected to generate more than $100 mn in cumulative economic impact in Wisconsin, according to a news release issued on July 15 by PR Newswire.
African Trade & Investment Development Insurance (ATIDI) provides a liquidity guarantee to the Sokodé solar project, facilitating private financing for a 62 MW plant dedicated to Compagnie Énergie Électrique du Togo.
Three major players commit to developing five solar plants and two wind farms, with commissioning scheduled between 2027 and 2028 as part of Saudi Arabia’s national programme.
SAEL Industries will invest $954mn in a solar factory in Greater Noida, boosting Indian manufacturing capacity and supporting the national strategy to localise photovoltaic component production.
Global photovoltaic inverter shipments increased by 10% in 2024, driven by the Asia-Pacific region, which accounts for nearly seven out of ten shipments, while China consolidates its influence on the sector.
Arctech Brazil has received FINAME certification from the National Bank for Economic and Social Development, making financing more accessible for its solar trackers and consolidating its role in the Latin American solar market.
MN8 Energy completes a $575mn secured bond issue led by Natixis Corporate & Investment Banking to refinance project debt and support the development of a diversified solar portfolio in the United States.
Solargik strengthens its presence in Italy with 85 MW of photovoltaic projects, including partnerships with Revalue and Free Ingegneria, to deploy systems on steep and agricultural land previously considered unexploitable.
EDF power solutions commissions two new photovoltaic plants in Moselle, together representing a capacity of 72 MWp, capable of annually supplying electricity equivalent to 36,000 inhabitants, or 30% of the population of Metz.
Solar energy reached a record share of 22.1% in the European electricity mix in June 2025, becoming for the first time the main source of electricity in the European Union, according to a report by think tank Ember.
Abraxas Power Corp. receives unprecedented authorisation from Maldivian authorities to develop a 100 MW solar project within a new special economic zone, targeting energy security and national climate objectives.
GreenYellow and Meaders Feeds Ltd finalise a second 1.8 MWp solar project under the Carbon Neutral Industrial Sector Scheme aimed at decarbonising the Mauritian industrial sector.