Off-Grid Solar Energy Market Size, Share, Trends, Growth 2032

Off-Grid Solar Energy Industry Prospective:

The global off-grid solar energy market size was worth around USD 2741.56 million in 2023 and is predicted to grow to around USD 6,464.46 million by 2032 with a compound annual growth rate (CAGR) of roughly 10.00% between 2024 and 2032.

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Off-Grid Solar Energy Market: Overview

Off-grid solar energy systems allow users to become completely independent in terms of their energy production and consumption. On-grid solar energy systems are more commonly known among the masses. In this form of solar energy generation, consumers are connected to the local utility grid. The excess energy generated is passed to the grid in exchange for earning credit that can be encashed later. On the other hand, off-grid solar energy does not require the use of local utility grid facilities. This means the consumers of the off-grid solar energy systems are self-sustaining their energy needs without having to depend on an external body. This type of energy production arrangement has advantages and disadvantages. The growing influx of consumers shifting to solar energy for power generation has benefitted the off-grid solar energy sector.

For instance, as per reports published by the Solar Energy Industries Association (SEIA), over 3.3 million homes in the US are powered by solar panels. Additionally, reports indicate that people who have switched to solar energy have recorded a decrease of 50% to 90% in their energy costs thus resulting in higher demand for solar energy solutions including the offerings in the off-grid solar energy market.

Key Insights:

• As per the analysis shared by our research analyst, the global off-grid solar energy market is estimated to grow annually at a CAGR of around 10.00% over the forecast period (2024-2032)
• In terms of revenue, the global off-grid solar energy market size was valued at around USD 2741.56 million in 2023 and is projected to reach USD 6,464.46 million, by 2032.
• The market is projected to grow at a significant rate due to the cost-saving advantages offered by off-grid systems
• Based on application segmentation, industrial was predicted to show maximum market share in the year 2023
• Based on technology segmentation, crystalline silicon was the leading segment in 2023
• On the basis of region, Asia-Pacific was the leading revenue generator in 2023

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Off-Grid Solar Energy Market: Growth Drivers

Cost-saving advantages offered by off-grid systems to fuel higher market demand

The global off-grid solar energy market is projected to witness a higher growth rate due to the cost-saving advantages of off-grid solutions. Systems that are not connected to utility grids are completely independent. These units are solely responsible for electricity generation without any external assistance. Electricity generated from the solar panels is stored in solar batteries using a charger controller. The next step involves the use of an inverter which helps in using the stored electricity to power homes and appliances. In on-grid solar energy systems, although the power is generated using solar energy, the users still have to rely on utility grid services for the supply of electricity. This form of dependency is resolved in the case of off-grid solar energy systems as the electricity stored in batteries can be used as per requirements including nighttime or days when sun exposure is limited. Off-grid solar energy offers cost-saving advantages. The exceedingly growing prices of fuel such as petrol and diesel have resulted in increased energy costs.

Additionally, since the traditional raw materials used for energy generation are fast dwindling, the energy costs are expected to rise even further. Adding to the already high expense associated with fuel, the impact of the ongoing war between Russia and Ukraine along with other social-political turmoil across the globe cannot be ignored. Such factors are responsible for encouraging people to opt for solar solutions since it is not only sustainable but also cost-efficient in the long run. The rise in consumer awareness about the benefits of solar energy solutions will create more demand for off-grid energy.

Rising government support to encourage the adoption of solar panels will impact demand for off-grid solutions

Governments on a global scale have initiated several programs that promote the benefits and subsequent adoption rate for solar energy installations. The off-grid solutions providers are also expected to benefit from such programs. In February 2024, the Indian government announced that it would increase the subsidy rate for rooftop installations of solar panels. The subsidy rate is expected to reach 60% under the new Pradhan Mantri Suryoday Yojana.

On the other hand, the US has launched the Federal solar tax credit which allows homeowners to file 30% of the total cost of solar panel investment as a tax credit. Such incentives are likely to affect the global off-grid solar energy market.

Off-Grid Solar Energy Market: Restraints

High cost of initial investment may restrict market expansion

The global off-grid solar energy industry is expected to be limited in terms of expansion rate due to the high expenses associated with initial investment. Off-grid solar energy generators are stand-alone systems. The energy generated using such independent models has to be stored in high-capacity batteries to be used at a later time. In on-grid solutions, if there is a requirement of excess energy, the same is supplied by the grid owner in which case the user of solar panels does not have to worry about energy generation.

This is not the case with off-grid solar panels. Hence, to ensure a continuous supply of energy, large batteries are required for energy storage which leads to an increase in the total cost of investment.

Off-Grid Solar Energy Market: Opportunities

Rising application of solar energy in the automotive sector will generate high revenue

The global off-grid solar energy market will generate high growth opportunities due to the rising applications of solar power in the automotive sector. The surge in electric vehicles has led companies in the automotive sector to seek novel ways of generating sustainable energy. In 2022, the global electric vehicle (EV) market was valued at over USD 380 billion and is expected to grow over a CAGR of 15% by 2030. Such a massive growth rate is expected to encourage more off-grid solar energy generators to develop efficient energy generation and storage solutions.

In February 2024, MG Motor India partnered with BatX Energies. The partnership will work toward developing India’s first off-grid, solar electric vehicle station that will be powered using the repurposed MG EV batteries. Such moves are an indication of a shift toward a circular economy where the used batteries of MG EVs will have extended application.

Growing advancements in battery storage systems to promote a higher number of buyers

A key parameter that defines the cost-efficiency of investment in the global off-grid solar energy industry is the battery storage capacity. Customers are seeking long-lasting solutions that justify the high cost of investment. By developing more long-lasting and less maintenance batteries, the companies can expect a higher influx of new customers.

In June 2023, North America-based Panasonic Corporation announced the launch of EVERVOLT® Home Battery System, ideal for off-grid solar systems that can be installed in outdoor and indoor settings, thus making the product more versatile as compared to its counterparts.

Off-Grid Solar Energy Market: Challenges

Limited battery storage capacity challenges market expansion policies

The global off-grid solar energy market will be challenged by the limitations that arise in the form of battery capacities. On-grid systems are massive structures and hence have large battery storage capacities. However off-grid systems face problems since the batteries installed can only have limited storage capacity. Thus, the users have to use energy responsibly focusing on the stored battery power.

Off-Grid Solar Energy Market: Segmentation

The global off-grid solar energy market is segmented based on application, technology, and region.

Based on application, the global market is segmented into industrial, commercial, and residential. In 2023, the highest demand was witnessed in the industrial segment. This includes small, medium, and large enterprises. More than 40% of the segmental share was dominated by the industrial segment in 2023 due to the higher use of solar energy systems across industrial units. These facilities have massive energy requirements. However, they also have to manage costs and off-grid solar solutions allow them to eventually reduce electricity costs by installing solar panels for energy requirements.

Based on technology, the global market is divided into crystalline silicon, thin film, and others. In 2023, the highest growth was registered in the crystalline silicon segment since these variants have been widely accepted for multiple years in the real world. The process of crystallization is used for the production of solar panels. They also showcase greater efficiency as compared to their counterparts. As per market research, solar batteries used in off-grid settings may last between 5 to 15 years.

Off-Grid Solar Energy Market: Report Scope

Off-Grid Solar Energy Market: Regional Analysis

Asia-Pacific to witness the highest growth rate during the projection period

The global off-grid solar energy market will be led by Asia-Pacific during the forecast period. China is currently the world leader in terms of solar energy generation. As of 2022, the country had installed around 390.01 GW of solar energy generators accounting for nearly two-thirds of the global installations of solar energy. As per reports, solar energy is the country’s third-largest renewable energy source following hydropower and wind energy. In June 2022, China announced subsidies worth USD 2.7 billion for energy generated through renewable sources. Japan and India are witnessing a surge in demand for solar panels as the regional electricity demand is growing. These countries are major importers of fuel required for energy production.

However, the recent volatility in the energy market has led India and Japan to seek measures to reduce the energy import rate. Japan is ranked as the world's third-largest country in terms of solar panel installations. In December 2022, Tokyo’s local assembly announced that all homes built after April 2025 in the region have to be powered using solar panels. North America is projected to grow at a rapid rate. The US is one of the largest consumers of the solar energy industry. The growing number of US citizens showing an inclination toward off-grid solar power systems will aid the regional market growth rate.

Off-Grid Solar Energy Market: Competitive Analysis

The global off-grid solar energy market is led by players like:

• BBOXX
• d.light
• Off Grid Electric
• Greenlight Planet
• SunFire Solutions
• Barefoot Power
• Nova Lumos
• M-KOPA Solar
• Mobisol
• Azuri Technologies
• Jaza Energy
• Fenix International
• Orb Energy
• SolarNow
• SolarHome.

The global off-grid solar energy market is segmented as follows:

By Application

• Industrial
• Commercial
• Residential

By Technology

• Crystalline Silicon
• Thin Film
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa