Global investment in off-grid solar companies fell by 30% in 2024, totaling just under $300 million, according to GOGLA, the global association for the off-grid solar energy industry. The sharp decline primarily affected early-stage firms and productive-use technologies, raising concerns about the sector’s ability to innovate and scale during a critical phase of global electrification efforts.
Despite the downturn, scale-ups captured over 75% of total investments, securing $229 million through securitizations and off-balance sheet structures. GOGLA noted that these mature companies are proving their commercial viability by balancing profitability with inclusive impact.
In stark contrast, startup funding plummeted by 70%, echoing broader venture capital challenges across Africa. The sector has already witnessed a wave of consolidation, resulting in a leaner, more resilient group of impact-driven, capital-efficient firms.
Seed-stage funding remained steady at $21 million, with a record 67 companies receiving support—62% of which were nationally owned. Blended finance models combining grants, equity, and technical support are helping these firms navigate the affordability gap.
Laura Fortes, GOGLA’s Senior Access to Finance Manager, emphasized the sector’s resilience, calling for urgent donor support to bridge affordability challenges. New initiatives like the Green Climate Fund and the M300—aimed at electrifying 300 million Africans by 2030—signal emerging optimism.
“With 2030 fast approaching, the next five years will be the defining push,” GOGLA stated, stressing the pivotal role off-grid solar can play in powering underserved communities worldwide.
