OFF-Grid Solar Market Expected to Reach $5.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “OFF-Grid Solar Market," The off-grid solar market size was valued at $1.9 billion in 2021, and is estimated to reach $5.8 billion by 2031, growing at a CAGR of 12.3% from 2022 to 2031.

Off-grid solar refers to a system that generates electricity from solar energy and operates independently of the traditional power grid. It is designed to provide electricity in areas that are not connected to the main utility grid or in situations where individuals or villages choose to be self-reliant and not rely on the grid.

The off-grid solar system prices have decreased significantly over time because of technology advancements and economies of scale. These systems provide a more affordable option than building out network infrastructure in remote locations, which may be quite expensive. Off-grid solar power makes decentralised electricity generation more economical since it does not require significant transmission and distribution networks. Off-grid solar system prices have decreased significantly due to developments in power electronics, batteries, and solar panel technology. Greater energy output per unit area is now possible owing to improved solar panel efficiency and cost. Better energy storage and power management for off-grid systems are now possible due to advancements in battery technology in terms of cost, durability, and storage capacity. In addition, cost-effective power electronics like inverters have improved, allowing for a greater conversion of solar energy into useful electricity. Off-grid solar systems are becoming more affordable owing to technology advancements and economies of scale, which make them a viable option for decentralised energy production. All these factors projected to drive the growth for off-grid solar market forecast period.

However, the limited energy storage ability is a potential restraint of the off-grid solar market growth. Off-grid solar systems usually use batteries to save energy for use when sunlight is no longer available, such as at night or during cloudy weather. Modern battery technologies have certain limitations that can affect the availability of electricity in off-grid solar systems. These barriers in energy storage capability and lifespan can result in conditions where off-grid solar structures cannot provide sufficient electrical energy during extended periods of inclement weather, such as during prolonged durations of rain or heavy cloud cover. In addition, high strength demand for the duration of certain times may exceed the capacity of the batteries, leading to limitations in accessing electricity.

The off-grid solar allows for decentralized energy generation, reducing dependence on centralized power plants and transmission lines. This decentralized approach enhances energy resilience and reduces the risk of power outages, especially in areas prone to natural disasters or with unreliable grid infrastructure. Moreover, off-grid solar systems can power small-scale productive activities, such as agricultural processing, small businesses, and cottage industries. Access to reliable electricity can enhance productivity, income generation, and overall economic development in off-grid areas. The off-grid solar market promotes innovation in solar PV, energy storage, and energy management systems. There is ongoing R&D to improve the efficiency, durability, and affordability of off-grid solar products. This creates opportunities for technological advancements and the emergence of new business models. Off-grid solar allows for decentralized energy generation, reducing dependence on centralized power plants and transmission lines. This decentralized approach enhances energy resilience and reduces the risk of power outages, especially in areas prone to natural disasters or with unreliable grid infrastructure. These factors are anticipated to boost off-grid solar market opportunities in the upcoming years.

The off-grid solar market share is segmented on the basis of application and region. By application, it is classified into residential, commercial, and industrial. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the off-grid solar market analysis report include ABB Ltd., Schneider Electric SE, Canadian Solar, Engie, SMA Solar Technology ag, Jinko Solar Holding Co. Ltd, SunPower Corporation, Delta Electronics, Greenlight Plant, and Hanwha Group.

The report offers a comprehensive analysis of the global off-grid solar market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global Off-Grid Solar Industry

• The off-grid solar industry heavily relies on global supply chains for components such as solar panels, batteries, and inverters. The pandemic disrupted these supply chains, causing delays and shortages, which affected the availability and affordability of off-grid solar systems. The economic impact of the pandemic led to financial constraints for individuals and businesses, affecting their ability to invest in off-grid solar systems.
• COVID-19 impacted almost all industries as lockdown measures and social distancing guidelines made it difficult for off-grid solar companies to conduct installations, repairs, and maintenance. This posed challenges in deploying new systems or providing timely support and services to existing customers.
• The economic slowdown caused by the pandemic resulted in reduced demand for off-grid solar products. Many households and businesses faced financial constraints, making it difficult for them to invest in renewable energy solutions. In addition, lockdown measures and restricted mobility limited the ability of companies to carry out installations and promote their products.

Key Findings of the Study

• Based on application, the industrial sub-segment emerged as the global leader in 2021 and the residential sub-segment is anticipated to be the fastest growing during the forecast period.
• Based on region, the Asia-Pacific market registered the highest market share in 2021 and is projected to maintain its position during the forecast period.