Investment in the global off-grid solar sector hit a new record of $746M in 2022

Amsterdam, 5 April 2023

GOGLA, the global association for the off-grid solar industry, supported by Get.invest, has released the latest results from the Investment Database, showing a record investment of $746M in 2022, a 63% growth versus the previous year. The record investment in the off-grid solar industry is encouraging. However, it remains far from the $23.3B needed to achieve the SDG7 goal of clean, modern electricity for all.  Today, more than 730 million people still live without access. 

Key highlights

• Total accumulated investment in the sector is now $3.1B to date.

• This year’s numbers are led by Sun King’s series D investment of $330M. Large investments in industry pioneers, as well as exits and the recycling of capital to patient investors, demonstrates the viability of the off-grid solar business model – with  impact and scale working together. 

• Several off-grid solar companies are now offering greater diversity in their product range, which is helping to boost sustainability, create more opportunities for investors and develop new pathways to profitability. Investment in the emerging productive use segment of the market grew by 29% to reach $32M. 

• However, whilst funds raised by start-ups have grown by 9% compared to 2021, equity investments have decreased by 40%. This is limiting some companies' ability to scale and reach new geographies and putting climate, development and electrification goals at risk.  

• Financial instruments that blend equity, grant and debt capital, along with a patient approach to returns, are key to de-risking and incentivising companies to reach hundreds of millions more people with clean-tech solar solutions.

We invite investors, development finance organizations and solar entrepreneurs to join us at Unlocking Solar Capital Africa in Kampala on 31 May and 1 June as we explore together the challenges and opportunities for solar investment, disruptive technologies and catalytic public-private partnerships.

Please find the full updated Investments Database here.   

About GOGLA

GOGLA is the global association for the off-grid solar energy industry. 

Our 200+ members provide millions of low-income and climate-vulnerable people with affordable, high-quality products and services; rapidly increasing customers’ productivity, connectivity and resilience.

To enable sustainable businesses and accelerate energy access, we provide market insights, standards and best practices, and advocate for catalytic policies, programmes and investment. With the right support, our pioneering industry will be able to scale up rapidly to improve the lives of 1 billion people by 2030. 

To find out more, visit www.gogla.org.

About Get.invest

GET.invest is a European programme that supports investments in decentralised renewable energy. The programme targets private sector business and project developers, financiers, and regulators to build sustainable energy markets in developing countries. Services include market information, a funding database, matchmaking events, and access-to-finance advisory. The programme is supported by the European Union, Germany, Sweden, the Netherlands, and Austria, and works closely with initiatives and business associations in the energy sector. 

To find out more, visit www.get-invest.eu.