$425 million invested into the global off-grid solar sector in 2023, a 43% drop versus 2022

By contrast, investment into the productive use of renewable energy doubled when compared to the previous year

The amount needed for the industry to fulfil its contribution to universal energy access by 2030 would need to be seven times higher

Amsterdam, 24 April 2024

GOGLA, the global association for the off-grid solar industry, supported by GET.invest, has released the results from its 2023 Investment Database, showing that the total investment into the off-grid solar sector was $425 million, a 43% drop versus the previous year. 

The most significant decrease took place in the scale-ups segment, raising concerns that macroeconomic conditions are pushing the sector further off-track for contributing to universal energy access by 2030. An annual investment of $3 billion is needed for the sector to fulfil its contribution to SDG7,  a number which would be 7x the investment seen in 2023.

Key highlights

  • 85 companies received an investment of $425 million: $281 million in debt, $128 million in equity, and $15.5 million in grants.
  • Productive Use of Renewable Energy (PURE) deals are spearheading the industry’s funding increase, reaching $65 million, double the amount from 2022.
  • Compared to 2022, locally-owned companies received 2X financing and female-owned and managed companies saw a 400% increase.
  • Start-up and seed companies are on a positive trend, reaching respectively $148 million and $24 million in 2023. Those focusing on PURE are receiving substantial support, constituting 34% of the total investment in startups, and reflecting a growing confidence in this segment, with solar irrigation and cold chain technologies having benefited the most.
  • Equity investments in household solar start-up and seed companies have recovered from the unusually low levels of 2022, but they have yet to reach the heights witnessed in 2021 ($46 million), 2020 ($62 million), and 2019 ($51.7 million). The downward trend of equity investment in household solar signals a concerning failure to nurture new companies focused on electricity access that will be crucial for achieving electrification goals.
  • Off-balance sheet financing offers significant promise as a viable financing mechanism for the sector. It accounts for 75% of the total committed debt amounts although it remains predominantly accessible to industry leaders. Wider adoption could catalyze further growth and innovation.
2023 investment data shows that without more de-risking instruments and concessional financing, off-grid solar will not reach the scale needed to achieve global development goals. While many examples of successful blended finance structures that are catalytic already exist, we need more of them to multiply industry funding by seven. Laura Fortes, Senior Access to Finance Manager

If you want to dig into the data with industry leaders, you can join our webinar tomorrow 25 April and you can access the full updated Investments Database here (available 25 April). 

In the months ahead, we urge development actors, philanthropies and climate-aligned investors to work with us on our Financial Vision for the industry, designed to Power 1 Billion Lives by 2030. To learn how you or your organisation can play a role, you can connect with us directly or join us at the Global Off-Grid Solar Forum and Expo 2024


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 practice, and advocate for catalytic policies, programmes and investment. Working with partners, our pioneering industry can 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 mobilises investments in renewable energy. It works with project and business developers, financiers and regulators to build sustainable energy markets in partner countries. Services include finance access advisory, market information, a funding database, and matchmaking events. Since 2022, GET.invest powers the Team Europe One Stop Shop for green energy investments, an access point for information about and facilitated access to European support and financing instruments for energy projects and companies in Africa. The programme is supported by the European Union, Germany, Norway, the Netherlands, Sweden, and Austria.

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

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