- Total investment in off-grid solar companies in 2024 reached nearly $300 million, according to GOGLA, the global association for the off-grid solar energy industry which is a 30% decline compared with 2023.
Gogla said the downturn hit early-stage companies and productive-use technologies the hardest, which it added “threatens innovation, scale and impact at a time when the sector is poised for a breakthrough.” The association added that last year marked a turning point, noting that “behind the slowdown are companies that have adapted to tougher conditions, proven their ability to scale, and built models that balance financial strength with inclusive impact.”
Scale-ups secured more than three-quarters of last year’s total, raising $229 million – most of it through securitizations and off-balance sheet structures. Gogla said mature players are proving their commercial viability and demonstrating that the sector can deliver both impact and returns.
In contrast, investment in start-ups dropped 70%, which the association said reflects broader venture capital trends across Africa.
“The shakeout is painful but expected – leaving behind a more resilient cohort of adaptable startups,” the association said. “Following a prolonged equity crunch, the sector has already undergone a wave of consolidation – one that, while difficult, has streamlined the landscape and surfaced a stronger group of capital-efficient, impact-driven companies.”
Seed-stage companies raised $21 million, matching last year’s total. A record 67 seed-stage firms secured funding, with nearly two-thirds (62%) of investment going to nationally owned companies. Gogla said blended capital stacks—combining grants, equity and technical assistance—are opening new pathways for these firms.
Laura Fortes, Gogla’s senior access to finance manager, said the sector has experienced tough exits and consolidation, but emphasized the resilience of the companies that remain.
“Demand is strong, the public value is undeniable, and the opportunity is real,” Fortes said. “But to unlock it at scale, we need donors to urgently address the affordability gap – so that companies can do what they’re built to do: deliver.”
Gogla’s investment database shows a new wave of support is emerging through the launch of patient equity funds, the Green Climate Fund, and the M300 initiative. The M300 aims to connect at least 300 million people in Africa with electricity access by the end of the decade and is preparing results-based financing schemes to address the affordability gap.
“Off-grid solar companies are projected to electrify nearly half of the world’s population currently without access to electricity – communities sidelined from development and economic opportunity,” said Gogla. “With 2030 fast approaching, the next five years will be the defining push.”
Author: Patrick Jowett
This article was originally published in pv magazine and is republished with permission.
