A solar panel mounted on a green wooden house in a rural landscape. Representative photograph by Nika Khutsishvili via Pexels.

Off-grid solar reaches more customers, but affordability limits its growth

Published: 03:00, October 31, 2026

Off-grid solar products supplied by a group of tracked manufacturers reached an estimated 149 million people in 2025, up from 118 million in 2023, according to a World Bank and industry report. The increase has brought electricity to more homes and businesses, but many potential customers still cannot afford a system.

The Off-Grid Solar Market Trends Report 2026, published on October 27 by the World Bank’s Energy Sector Management Assistance Program and industry association GOGLA, examines solar products used away from centralized electricity networks.

The reported reach covers an affiliate market of GOGLA members and other companies meeting specified quality or program criteria. It is not a count of every off-grid solar product in use worldwide.

The report estimates that 7.4 million people use off-grid solar to power very small businesses or other income-generating activities. For an entrepreneur, the difference between a light and a system capable of running a refrigerator or water pump can determine whether the equipment supports a new service as well as household needs.

Small systems can serve different needs

Off-grid solar generally combines a photovoltaic panel with a battery and controls to supply electricity independently of the main grid. Products range from portable lanterns to home systems and equipment for farms, shops and clinics. Some can also provide backup where the grid exists but service is unreliable.

Capacity matters. A small lighting kit is not interchangeable with equipment sized to run machinery throughout the day. Buyers need to consider the power required by each appliance, hours of use, battery storage, seasonal sunlight and the cost of repair or replacement.

In our coverage of battery storage, we explained why the amount of energy a battery holds and the speed at which it can deliver power are separate measurements. The same distinction matters for a shop deciding whether stored solar power can keep refrigeration running overnight.

The report’s reach figure includes different product types and does not establish that every person has the same level of electricity service. A lantern may provide valuable light without supplying enough power for a business’s larger equipment.

The lowest-cost option may still be out of reach

The authors estimate that off-grid solar is the least-cost way to serve at least 398 million people who lack electricity. That is a modeled comparison of routes to access, not a claim that those people have already been connected or will all receive power by 2030.

Even a cheaper option can be unaffordable to the household expected to buy it. The World Bank’s release says only one in three households without electricity can afford an entry-level solar home system through pay-as-you-go financing; another third can afford one only with difficulty.

Pay-as-you-go arrangements spread the purchase cost over installments. They can reduce the initial payment, but customers still need enough income to meet the full cost, and providers must finance inventory, collect payments and service equipment over time.

For a business customer, expected savings should be compared with the complete contract: deposits, installment amounts, maintenance, battery replacement and what happens if payments are missed. Revenue from an additional appliance is uncertain, while repayment obligations may continue.

Investment must reach smaller markets

Commercial financing reached $315 million in 2025, according to the report, but was concentrated among leading companies and markets. Smaller local providers may struggle to fund stock, distribution and after-sales service, even where demand exists.

The report estimates that reaching the 398 million people for whom off-grid solar is the least-cost option by 2030 would require around $11.4 billion between 2027 and 2030. That is a financing estimate for a scenario, not money already committed.

The surveyed affiliate market employed an estimated 219,000 people. Many are sales agents and technicians, making the availability of installation and repair skills part of the business model rather than an afterthought.

Among customers surveyed, 95% said their solar home systems still worked four or more years after purchase. The result describes the respondents surveyed, not every system on the market. For customers, a credible warranty and access to repairs can matter as much as the panel’s initial price.

Christian Nordqvist Avatar

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