Off-Grid Solar Powers 149 Million People; Reaching More Needs $11.4 Billion

Off-grid solar is the least-cost way to provide electricity for at least 398 million people without access, and it can complement grid expansion and mini-grids in areas they do not yet reach.

Off-grid solar is supplying electricity to more people and supporting more livelihoods, businesses and essential services than before. The number of users grew 26% in two years, from 118 million to 149 million, according to the 2026 market trends report released by the World Bank Group's Energy Sector Management Assistance Program and GOGLA in Kigali. The report describes a sector that has grown beyond household lighting and now supports the infrastructure powering communities and local economies.

Off-grid solar is the least-cost way to provide electricity for at least 398 million people without access, and it can complement grid expansion and mini-grids in areas they do not yet reach. Households, farms, schools, health facilities, and small businesses can use it as a secure, resilient power source as energy prices rise. In a customer survey, 95% said their solar home systems were still working four or more years after purchase.

The report links reliable electricity to income and employment, estimating that 7.4 million people use off-grid solar for microenterprises or other income-generating work. Customers have gained an estimated $28 billion in additional income and savings over the past 15 years, and the surveyed market employs 219,000 people, 29% more than two years ago.

Solar power is supporting work and essential services

Products once associated mainly with basic lighting now power irrigation, clinics, shops and services that help sustain rural economies. GOGLA Executive Director Sarah Malm said the technology is already working through economic shocks and in places the grid has not reached, though financing has not kept up with the role it is playing. The report argues that governments, investors and development partners need to recognize off-grid solar as infrastructure when planning energy access.

Affordability remains a barrier

Only about one-third of households without electricity can afford an entry-level solar home system through pay-as-you-go financing, and another third can manage the cost only with difficulty. The report points to VAT exemptions, import-duty waivers and targeted subsidies as ways to lower costs and reach customers who remain priced out. Reaching all 398 million people for whom off-grid solar is the least-cost option will require around $11.4 billion between 2027 and 2030, including annual grants and affordability subsidies alongside equity, debt and receivables financing.

Public funding can help bring in private investment

Mission 300, the World Bank Group and African Development Bank initiative, seeks to connect 300 million people to electricity across sub-Saharan Africa by 2030, with distributed renewable energy expected to contribute significantly. Eighty percent of the initiative's 35 National Energy Compacts include distributed renewable energy in their connection targets. World Bank Group commitments to off-grid solar reached $974 million in FY25–26, matching the level in FY23–24, as governments and development partners use public funding to attract private investment.

ESMAP Manager Fanny Missfeldt-Ringius said the World Bank Group would continue supporting governments' national energy plans and using financing tools to bring in private capital. The report sees off-grid solar as a way to strengthen energy security, resilience and affordability, as well as create jobs. Expanding access will depend on sustained public and private investment and policies that help households and businesses afford the systems.