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Global off-grid solar market expected to rise to $5.8 billion by 2031

The global off-grid solar market is set to reach $5.8 billion by 2031, growing at a compound annual growth rate (CAGR) of 12.3% from 2022 to 2031, according to a report by Allied Market Research.

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Off-grid solar systems generate electricity using solar panels and operate independently of traditional electrical grids. The major components of an off-grid solar system include solar panels, batteries, charge controllers, and inverters.

The COVID-19 pandemic has had a challenging impact on the off-grid solar market due to lockdowns, travel restrictions, and reduced manufacturing capacities. The manufacturing and delivery of off-grid solar products were hampered due to this disruption, resulting in delays and shortages.

The rising demand for clean power is expected to create substantial opportunities for the expansion of the off-grid solar market. Off-grid solar energy solutions offer a clean, reliable, and sustainable alternative to conventional fossil fuel-based options, making them an appealing choice for remote areas with insufficient grid infrastructure.

Despite the benefits, affordability continues to be a significant barrier to the widespread adoption and growth of the off-grid solar market.

The upfront costs associated with purchasing and installing these systems can be a challenge for many individuals and communities. However, the cost of solar panels and associated equipment has notably lowered in recent years, making off-grid solar energy solutions more affordable.

The Asia-Pacific region currently dominates the global off-grid solar market due to the increasing demand for reliable and sustainable energy sources in rural and isolated regions. Governments across the region are aggressively supporting renewable energy options, including off-grid solar, through subsidies and incentives.

In terms of application, the industrial sub-segment dominated the market in 2022 due to the emphasis on offering dependable and environmentally friendly electrical solutions for businesses that have no connection into the main power grid. By utilizing off-grid solar solutions, industries in remote areas or regions with unreliable grid infrastructure can achieve energy independence, minimize downtime, and increase productivity.

The report profiles key players in the off-grid solar market, including 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.

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