Sub-Saharan Africa's Off-Grid Solar Market Set to Surge Sixfold by 2035
Off-grid solar market growth in Sub-Saharan Africa is expected to surge sixfold by 2035, driven by high diesel costs, lower solar module prices, and growing private finance. According to Wood Mackenzie's forecast, Nigeria will account for almost 35% of regional off-grid solar installations, while Kenya's market shifts towards cost optimization.
The Democratic Republic of Congo is emerging as a major opportunity for solar and storage systems, thanks to mining demand creating a need for reliable power generation. Wood Mackenzie notes that mining operations in the copper belt rely heavily on diesel generation, which can be replaced by solar PV and battery storage systems, providing lower cost electricity while reducing fuel consumption and carbon emissions.
Developers are increasingly using value stacking, combining energy sales with financing and related services to improve project bankability and broaden access to solar systems for customers. However, financing remains the principal challenge for the sector, with currency depreciation, double-digit interest rates, and inconsistent rural electrification policies limiting project development.