Global Healthcare Power Crisis: Can Solar Energy Bridge the Gap as International Funding Shrinks?

A new SEforALL and UNDP report reveals that over 286,000 healthcare facilities worldwide lack reliable electricity, threatening essential medical services and patient safety. Despite falling solar costs, shrinking international aid, inadequate maintenance and financing gaps remain major barriers, requiring stronger government investment and private-sector partnerships.

The global effort to provide reliable electricity to hospitals and healthcare centres is facing a major financing challenge, with hundreds of thousands of medical facilities still struggling to deliver essential services because of unreliable power supplies. According to the State of the Market Report for Healthcare Facility Electrification: 2026 Update, prepared by Sustainable Energy for All (SEforALL) and the United Nations Development Programme (UNDP), at least 286,170 healthcare facilities worldwide, including 81,407 in Sub-Saharan Africa, still require first-time electrification or reliable backup electricity. The October 2026 report warns that installing solar panels alone will not solve the problem unless governments establish sustainable financing, maintenance arrangements and stronger institutional coordination. It calls for a shift from short-term, donor-funded projects to long-term electricity services supported by governments, development partners, and private companies.

Global Healthcare Electrification Gap Threatens Essential Medical Services

The report examines 426 healthcare electrification initiatives across 73 countries, revealing substantial progress but also enormous unmet demand. Since 2021, 160 major projects have targeted more than 38,000 healthcare facilities, with at least 141 megawatts of solar capacity expected by 2030. Sub-Saharan Africa has the most individual projects, while Asia leads in the number of facilities covered, largely because of India's expanding solar healthcare programmes.

Closing the remaining healthcare electricity gap in Sub-Saharan Africa alone would require approximately $2.67 billion in upfront investment, excluding maintenance and equipment replacement costs. This financing requirement highlights the difficulty facing governments already struggling with limited healthcare budgets.

Reliable electricity is essential for operating medical oxygen equipment, preserving vaccines, supporting childbirth, conducting surgeries and maintaining laboratories. Power interruptions can delay treatment, damage medical supplies and weaken emergency services. The report highlights that approximately 374 million people require oxygen therapy annually, while billions lack access to safe and affordable oxygen services.

Solar power combined with battery storage offers an opportunity to strengthen healthcare delivery, particularly in rural communities where diesel generators are expensive and fuel supplies are uncertain.

Shrinking International Aid Puts Healthcare Energy Projects at Risk

Financing remains one of the biggest obstacles to expanding healthcare electrification. Official development assistance declined by 23% in 2025, reducing resources available for development programmes.

The termination of the USAID-supported Health Electrification and Telecommunications Alliance disrupted an initiative designed to electrify 10,000 healthcare facilities. Only 782 facilities had been solarized before the programme ended, demonstrating the vulnerability of projects dependent on international grants.

The World Bank, European Union, UNICEF, UNDP and other development partners are increasingly supporting national electrification programmes. The World Bank's Mission 300 agenda includes a goal of electrifying approximately 75,000 healthcare facilities.

India provides an important example of large-scale implementation. The Energy for Health programme, supported by SELCO Foundation and the IKEA Foundation, aims to electrify 25,000 public healthcare facilities with approximately 49 megawatts of solar capacity. More than 10,000 facilities had been electrified by the end of 2025.

In Sierra Leone, solar installations across hospitals and primary healthcare units are strengthening electricity access. Nigeria, Uganda, Malawi and Madagascar are also developing programmes combining public investment with private-sector participation.

Falling Solar Costs Create Opportunities, but Maintenance Remains a Challenge

Technological improvements are making renewable electricity increasingly affordable. Solar panel prices declined by approximately 50% between 2022 and 2025, while lithium-ion battery prices fell by 36%.

However, cheaper equipment does not automatically guarantee reliable electricity. Transportation, installation, technical support and maintenance remain expensive, particularly in remote communities.

Studies cited in the report indicate that between 30% and 60% of installed solar systems in some African settings become partially or completely non-functional after several years. Battery deterioration, inadequate maintenance budgets and limited technical expertise are major reasons.

Digital monitoring technologies could help address these problems by allowing operators to track electricity generation, battery performance and equipment failures remotely. Such systems could reduce repair delays and improve healthcare service reliability.

The report also highlights opportunities to integrate solar electricity with medical oxygen production, vaccine refrigeration and digital healthcare systems, helping facilities expand services while reducing dependence on diesel generators.

New Financing Models Could Transform Healthcare Electricity Access

The report identifies energy-as-a-service as a promising alternative to conventional infrastructure projects. Under this approach, private companies install, operate and maintain electricity systems through long-term contracts, while governments or healthcare facilities pay for reliable electricity services.

Completed service-based projects have electrified 597 healthcare facilities since 2021, representing approximately 4.3 megawatts of installed capacity. Planned and ongoing programmes could cover another 2,976 facilities, representing more than 55 megawatts of capacity and nearly $195 million in investment.

However, uncertain government payments, restrictive procurement regulations and limited access to commercial financing continue to discourage investors.

SEforALL and UNDP recommend dedicated government budgets, stronger coordination between health and energy ministries, blended financing and long-term maintenance contracts. Development partners are encouraged to use grants and guarantees to attract private investment while protecting affordability for public healthcare facilities.

For policymakers, the central challenge is ensuring that renewable energy investments deliver dependable services rather than simply increasing installation numbers. For businesses, long-term energy contracts could create opportunities in equipment supply, maintenance and digital monitoring. For patients, reliable electricity could mean safer childbirth, better emergency treatment and uninterrupted access to essential medical care.

Healthcare electrification must be treated as a permanent public service rather than a one-time infrastructure investment, making long-term financial planning and institutional accountability essential to achieving universal access.