Global Off-grid Solar Power Systems Market Size, Share, And Enhanced Productivity By Type (AC, DC), By Application (Non-residential, Residential), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Off-grid Solar Power Systems Market is expected to be worth around USD 9.8 billion by 2034, up from USD 3.9 billion in 2024, and is projected to grow at a CAGR of 9.7% from 2025 to 2034. Off-grid solar power systems in Asia-Pacific reached 48.10% share, totaling USD 1.8 Bn.

Off-grid solar power systems are standalone electricity solutions that work independently from the main power grid. They use solar panels, batteries, charge controllers, and inverters to generate and store electricity for homes, schools, clinics, and small businesses in areas without reliable grid access. These systems are designed to provide basic and continuous power where grid extension is difficult or too costly.

The off-grid solar power systems market covers the supply, installation, and use of standalone solar solutions across rural, remote, and underserved regions. Demand is especially strong in countries with uneven electrification. For example, Honduras has a grid electrification rate of 85.6%, yet many remote areas remain unserved. With 39% of the population living in rural areas and 64.1% of rural households classified as very poor, off-grid solar fills a critical electricity gap.

Key growth factors include low income levels, weak grid infrastructure, and dispersed rural populations. Honduras’ 2024 GDP per capita of US $3,426 highlights affordability challenges, making decentralized solar a practical option. Off-grid systems reduce dependence on national utilities and deliver faster electrification in isolated regions.

Rising demand comes from households seeking basic lighting, phone charging, and appliance use. In regions where grid access is unreliable or absent, off-grid solar ensures energy security and improves living standards without waiting for grid expansion.

• The Government of India allocated ₹1,500 crore to solar power grids in the Budget 2025, supporting solar infrastructure growth and long-term deployment potential.

Key Takeaways

• The Global Off-grid Solar Power Systems Market is expected to be worth around USD 9.8 billion by 2034, up from USD 3.9 billion in 2024, and is projected to grow at a CAGR of 9.7% from 2025 to 2034.
• DC systems dominate the Off-grid Solar Power Systems Market with 59.2% share due to direct battery compatibility and lower conversion losses.
• Residential use leads the Off-grid Solar Power Systems Market with 67.9% share, driven by rural electrification and home backup demand.
• Asia-Pacific region leads off-grid solar power systems, holding 48.10% worth USD 1.8 Bn.

By Type Analysis

In Off-grid Solar Power Systems Market, DC systems lead with 59.2% share.

In 2024, DC held a dominant market position in the By Type segment of the Off-grid Solar Power Systems Market, with a 59.2% share. This dominance reflects the practical suitability of direct current systems for off-grid environments, where energy generation, storage, and consumption often operate natively on DC power. Solar panels naturally generate DC electricity, which reduces conversion losses and system complexity when DC-based architectures are adopted. As a result, DC systems deliver higher efficiency and improved reliability in remote and energy-constrained locations.

The strong share of the DC segment is also supported by its compatibility with batteries, charge controllers, and DC appliances commonly used in off-grid installations. Fewer conversion stages lower maintenance needs and extend component life, which is critical for users in isolated regions. These operational advantages continue to reinforce DC’s leading position within off-grid solar system deployments.

By Application Analysis

Within the Off-grid Solar Power Systems Market, residential applications dominate, holding 67.9% share.

In 2024, Residential held a dominant market position in the By Application segment of the Off-grid Solar Power Systems Market, with a 67.9% share. This leadership is closely tied to the widespread use of off-grid solar solutions for household electrification in areas with limited or unreliable grid access. Residential users prioritize stable power for lighting, basic appliances, and essential services, making off-grid solar systems a dependable and practical choice.

The high share of the residential segment also reflects growing awareness of energy self-sufficiency and long-term cost control at the household level. Off-grid solar systems allow residents to reduce dependence on external power sources while ensuring consistent electricity availability. These functional and lifestyle-driven factors continue to support the residential segment’s strong position in the overall market structure.

Key Market Segments

By Type

• AC
• DC

By Application

• Non-residential
• Residential

Driving Factors

Rising Investment Support Accelerates Off-grid Solar Adoption

One major driving factor for the off-grid solar power systems market is the steady rise in targeted investment for energy access solutions. Investors are increasingly supporting off-grid projects because these systems deliver quick, measurable impact in regions with weak or unreliable electricity infrastructure. Capital inflows help solar providers scale operations, improve system quality, and reach rural households and small businesses faster.

In Nigeria, investor confidence remains strong as off-grid solar addresses daily power shortages and reduces dependence on diesel generators. For example, a UK-based investor committed $7.5 million to off-grid power projects in Nigeria, directly supporting expansion in underserved areas.

In parallel, an African off-grid solar company raised €19 million to strengthen solar deployment and service networks across key markets. Additionally, Arnergy raised $3 million to supply solar power systems to Nigerian homes and businesses, improving energy reliability.

Restraining Factors

High Financing Complexity Slows Off-grid Solar Expansion

One key restraining factor for the off-grid solar power systems market is the complexity of financing and long payback periods. While demand is strong, many off-grid users have limited purchasing power, making providers dependent on external funding and credit structures. Managing repayment risks, currency fluctuations, and customer affordability adds pressure on project sustainability.Even though funding exists, it often comes with strict conditions and performance targets that slow execution.

For example, Standard Bank Group, Citi, Norfund, and CDC Group partnered to fund a $75 million sustainability-linked facility in East Africa, showing strong support but also highlighting the reliance on large financial institutions. Smaller initiatives, such as $250,000 allocated for African clean energy projects, indicate limited scale. Additionally, $16 million raised for prepaid solar models reflects ongoing capital needs to sustain operations.

Growth Opportunity

Large-Scale Capital Enables Wider Off-grid Solar Access

One major growth opportunity in the off-grid solar power systems market is the availability of large, targeted capital for expanding installations in energy-poor regions. Funding allows system providers to reach remote households, schools, and small businesses that remain outside grid coverage.

With sufficient financial backing, companies can install complete solar systems faster, improve service reliability, and support long-term maintenance. In Nigeria, Lumos Global received $75 million to install off-grid solar systems, highlighting strong confidence in decentralized energy solutions. This funding supports wider deployment and improves electricity access across underserved communities.

Similarly, BBOXX secured US$4 million in debt finance from a Togo-based bank to support off-grid solar expansion, enabling structured growth in West Africa. These investments show how access to capital creates opportunities for scaling off-grid solar infrastructure while addressing electricity gaps sustainably.

Latest Trends

Government And Structured Finance Drive Off-grid Growth

One clear latest trend in the off-grid solar power systems market is the combination of government-backed rollout plans and structured private financing. Authorities are increasingly setting clear deployment targets to speed up electricity access in remote areas.

For example, Western Australia has set a goal to deploy more than 1,000 standalone power systems, supported by a $37 million funding boost. This approach reduces dependence on grid extensions and improves service reliability in distant communities.

At the same time, financial institutions are using securitised financing to unlock capital for off-grid solar portfolios. In Nigeria, Chapel Hill Denham closed $7.4 million in securitised financing for off-grid solar projects, helping operators recycle capital and scale installations. Together, policy-driven targets and innovative financing structures are shaping a more sustainable and scalable off-grid solar ecosystem.

Regional Analysis

Asia-Pacific off-grid solar power systems market dominated with 48.10% share, USD 1.8 Bn.

Asia-Pacific emerged as the dominating region in the Off-grid Solar Power Systems Market, holding 48.10% share and valued at USD 1.8 Bn, driven by strong deployment across remote and rural areas where grid connectivity remains limited. The region benefits from high solar irradiation, large off-grid populations, and growing adoption of decentralized energy solutions, positioning Asia-Pacific as the central growth engine of the global market.

In North America, off-grid solar power systems are primarily adopted for remote residential properties, recreational facilities, and backup power needs, with demand shaped by energy independence and resilience considerations. Europe shows steady adoption in isolated communities, agricultural operations, and eco-conscious residential projects, where off-grid systems support sustainability goals and reduce reliance on centralized grids.

The Middle East & Africa region relies on off-grid solar systems to address electrification gaps, especially in rural and desert regions where extending grid infrastructure is challenging. Latin America demonstrates growing utilization of off-grid solar power for rural households, telecom sites, and small-scale applications, supporting energy access in geographically dispersed areas.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

ABB Ltd. continues to play a strategic role in the global off-grid solar power systems landscape through its strong engineering base and deep experience in power electronics and energy management solutions. The company’s focus on reliable inverters, grid-forming technologies, and automation platforms makes its offerings suitable for remote and hybrid off-grid installations. ABB’s ability to integrate solar generation with storage and control systems supports stable power delivery in isolated locations, which strengthens its relevance in off-grid applications where performance consistency and system longevity matter most.

AKUO ENERGY SAS is viewed as a project-driven player with a clear focus on renewable energy deployment, including off-grid and hybrid solar systems. The company emphasizes localized energy solutions designed for areas with limited grid access. Its approach centers on developing solar projects that combine technical feasibility with long-term operational stability. This positioning allows AKUO ENERGY SAS to address off-grid needs through tailored system design rather than standardized equipment-only offerings.

Azuri Technologies Ltd. stands out for its strong orientation toward off-grid residential and small-scale users. The company’s expertise lies in modular solar home systems and pay-as-you-go models that improve electricity access in underserved regions. Azuri’s technology focus on user-friendly systems, remote monitoring, and efficient energy use, aligns well with off-grid household requirements, reinforcing its role as a practical solution provider in decentralized solar power markets.

Top Key Players in the Market

• ABB Ltd.
• AKUO ENERGY SAS
• Azuri Technologies Ltd.
• Canadian Solar Inc.
• ENGIE SA
• Gem Energy Australia Pty Ltd.
• JinkoSolar Holding Co. Ltd.
• Kirloskar Group
• M KOPA
• OMC Power Pvt. Ltd.

Recent Developments

• In January 2025, ABB completed the acquisition of Lumin, a U.S. residential energy management platform. This expands ABB’s offering in managing household energy, which complements solar systems by enabling better energy use, storage control, and integration of renewables at homes.
• In August 2024, Akuo Energy completed the acquisition of a solar development project in the Dominican Republic, taking over a 50 MW solar photovoltaic plant concession known as Este Cabreto I. This move expands Akuo’s global solar development footprint and strengthens its project base in the Americas. The transfer of ownership was approved by local regulators, enabling Akuo to continue project development and operation.

Report Scope