Off-Grid
Solar Market To Make Major Moves To Mainstream By 2023
The push towards renewable energy sources has been
significant, with individuals being more mindful of the excesses or wastes they
generate. The use of various renewable energy sources is being promoted around
the world, with water harvesting and solar energy emerging as the often
suggested choices. The use of off-grid solar is gaining momentum in recent
times, especially in countries where energy crises are predominant. The
self-sustaining nature of off-grid solar is motivating the development of the market
considerably in recent times. As off-grid systems permit
the storage and saving of solar power in batteries for consumption when the
power grid goes out of action. The improvement in the product design of solar
panels is expected to motivate their use in off-grid solar operations. The Global
Off-Grid Solar Market is expected to grow at 12.50 % CAGR during the
forecast period.
The electrification rate is very slow in many
developing countries around the world due to the lack of resources funding and
a proper infrastructure. Moreover, the increasing cost of power utility is
motivating the use of sources that are less expensive and are more easily obtainable.
More businesses are relying on off-grid solar systems as they can offer a
steady electricity supply and consequently uninterrupted operations. Apart from
businesses, homeowners are also increasingly using off-grid solar to ensure
continuity in electricity supply during natural disasters or outages. Also, the
rising awareness of the impact of environment pollution is encouraging
homeowners to become eco-friendly by adopting alternative sources of energy.
The situation for electricity availability is
precarious in developing nations with limited budgets, resources, and lack of
awareness lowering the spread of the off-grid solar market in these regions.
But contenders in these regions are making extensive plans to capture a stake of
this market as they are significantly untouched. For instance, Rensource, an off-grid
solar energy firm, has recently raised USD 20 million in a Series A round conjointly
controlled by African venture capital fund, the Omidyar Network, a CRE Venture
Capital and impact financier. The round also observed contributions from
Proparco, Inspired Evolution, EDPR, Sin Capital, I&P, and Yuzura Honda. Rensource’s financing round is a result of sustained
investor interest in Africa-focused renewable and off-grid energy start-ups that
are attempting to fill electricity gaps.
The solar market share is expanding due to the development
of properties in secluded areas is expected to raise the reliance on off-grid
solar products further, which can provide reliable energy generation. Moreover,
investors, these days are also increasingly attracted to the renewable energy
sector with the innovation in the sector rising at an incremental pace. The progress
pace of the off-grid solar market is expected to be motivated by government
support, which has been strong in various countries that receive a good share
of sunlight. For example, Kisumu County Administration in Kenya has lately announced
an appeal for tenders for the putting up of solar power off-grid systems to provide
public utility infrastructure. The county government has declared that it will
give precedence to public-private partnerships (PPPs) for this project. The
financial incentives that are delivered to participating entities are expected
to motivate the market for off-grid solar in the coming period. For instance,
The Kerala State Electricity Regulatory Commission (KERC) has stretched out the
financial incentive compensated to creators of off-grid solar systems for an
additional two years. The five-year directive allows payment of one rupee for apiece
kilowatt-hour produced by off-grid arrays terminated at the close of September
but has now been validated to continue never-ending until October 1, 2021.
The need to shrink the environmental impact of CO2
emission is expected to drive the development of the market. The enhancements
in solar home systems are also expected to benefit the off-grid evolution in
the approaching period.
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