• Off-grid solar emerges as the fastest and most affordable electrification option

• Productive uses of solar power reshape local economies across the continent

• High costs, low incomes, currency risks, and weak supply chains still hinder scale

Africa remains the center of global energy poverty. The International Energy Agency (IEA) estimates that most of the 730 million people still without electricity live in sub-Saharan Africa. The African Development Bank (AfDB) points to more than 600 million people, about half of the continent’s population. For these communities, daily life is marked by the dim glow of kerosene lamps or the intermittent hum of diesel generators. These stopgap solutions are expensive and polluting, reinforcing a cycle of poverty and environmental damage. At the current pace of electrification, and with Africa’s rapid population growth, the number of people without power will barely change without bold action. Given the implications for productivity, education, and health, the IEA notes that decentralized solar power has become more strategic than ever.

Although the World Bank Group and the African Development Bank have joined forces under the “Mission 300” initiative to bring electricity to 300 million Africans by 2030, the World Bank acknowledges that off-grid solar is the fastest and most cost-effective way to supply power to 41 % of people worldwide who still lack electricity by 2030. Off-grid solar already served 561 million people in 2023 and accounted for 55 % of new connections in sub-Saharan Africa between 2020 and 2022. Compared with grid or mini-grid expansion, off-grid systems are cheaper and can be deployed more quickly to meet current demand levels.

Solar power is changing lives

As national power systems struggle with low coverage, limited capacity, aging infrastructure, and high tariffs, off-grid solar solutions are generating measurable economic value. In its Off-Grid Solar Market Trends Report 2024, the World Bank estimates that generators supply nearly 9 % of electricity in sub-Saharan Africa, costing households $28 billion to $50 billion a year in fuel, plus an additional 10 % to 20 % in maintenance. Solar kits and appliances reduce household energy costs, extend business hours, strengthen cold-chain logistics, and increase the income of small businesses. Electricity transforms daily life by providing light for study, ventilation and refrigeration for health and food, access to information through radio and educational TV, and greater security at night. Solar pumps help households cope with droughts and boost agricultural productivity, while refrigeration cuts post-harvest losses and improves vaccine and medicine storage in health centers. According to the Energy Sector Management Assistance Program (ESMAP), “productive uses” of solar energy are spreading rapidly in local value chains such as agrifood, crafts, and services.

“Off-grid solar systems (OGS) enables households, businesses, and farmers to use electricity productively and generate income. In a survey of over 79,000 off-grid customers across 31 countries, 86% of solar water pump (SWP) users experienced increased productivity, and 60% expanded their cultivated areas, leading to an income increase for 88% of these users. Similarly, 88% of refrigerators were used for productive uses, with 81% of users reporting improvements in quality of life.27 In 2023, over 3 million people were using their SHS to run an enterprise,” ESMAP reports. The pay-as-you-go (PAYGo) model has been key to the growth of the off-grid solar (OGS) sector, especially in sub-Saharan Africa. Customers make a down payment, take possession of the solar equipment, then continue making regular payments until the full balance is settled. Payments are usually made via mobile money, widely available in the region, although scratch cards, airtime credit, and cash payments are also used.

A wide range of field operators have recognized the transformative potential of solar power in Africa and are driving this new wave of affordable electrification.

A dynamic private sector

Between 2018 and 2024, off-grid solar start-ups expanded their footprint in Africa, supporting progress toward universal access to electricity. Although financing for these companies fell from $194 million in 2018 to $192 million in 2024, after peaking at $425 million in 2023, the sector’s momentum has not slowed. Sun King is among the start-ups gaining ground. The company, which says it provides solar energy to 30 % of Kenyan households, signed a $156 million securitization deal in July 2024 with ABSA, Citi, The Co-operative Bank of Kenya, KCB Bank, and Stanbic Bank Kenya. This follows a $130 million transaction in 2023 to deliver 3.7 million solar products in Kenya. Bboxx has also grown over the past five years. By acquiring PEG in 2022, the company expanded its reach in Côte d’Ivoire, Ghana, and Mali. Its presence in about ten countries now allows it to supply solar products to more than 2.5 million people.

Telecom group Orange has also made off-grid solar a strategic priority. By easing access to electricity, the company simultaneously boosts adoption of its mobile Internet and mobile money services. Through Orange Energies, the operator had more than 600,000 connected households in 2024, equal to nearly 4 million people across 13 countries. Orange Energies has built an IoT platform, Orange Smart Energies, which enables PAYGo and smart metering. This digital layer allows Orange to work with sellers of solar kits, national utilities, and mini-grid developers. Customers can prepay for energy at their own pace, depending on their income. Working with partners such as Koolboks, Biolite, Sun King, and Solar Run, Orange Energies offers solar panels, smart batteries, LED lamps, USB ports, and household appliances for rural users, with products ranging from fans to freezers, TVs, and radios.

Orange Energies’ expertise has been recognized by international and local organizations. In June 2024, the firm won a €150,000 AFD contract to accelerate rural electrification in more than 400 localities in Côte d’Ivoire under the MAX project, funded by the European Union and implemented by Expertise France. In September 2024, the World Bank and GIZ awarded Orange a $360,000 contract to equip 8,000 off-grid households with autonomous solar solutions in priority areas in Liberia by June 2025. Orange Energies also signed a public-private partnership with the Guinean government’s rural electrification agency (AGER) and mini-grid developer IPT PowerTech to build an ABC mini-grid to electrify six localities: Kalenko, Siguiri, Yèndè Milimou, Nongoa, Ouendé Kènèma, and Fangamandou, using a connected prepayment model for customers.

Off-grid solar in Africa is no longer an experiment. It has become an industrial, financial, and social sector that brings electricity, generates income, and reshapes everyday life. But sustaining this momentum requires confronting several challenges.

Risks remain

Market forces alone will not electrify rural Africa. Reaching the poorest households and the most remote areas requires public funding—direct subsidies, guarantees, and concessional finance. Sector estimates indicate that about $3.6 billion per year will be needed through 2030 to electrify, via off-grid solar, the hundreds of millions of people for whom it is the least costly option. About 40 % of that amount would need to come as targeted subsidies to lower end-user costs in remote, fragile, and conflict-affected areas. Mobilizing these funds remains a major hurdle.

PAYGo helps customers spread payments over time, but extreme poverty limits its reach. Only a small share of rural households can afford even modest monthly payments. Costs rise even more in remote or conflict-affected areas, where logistics can push prices up by as much as 57 %. As a result, only 22 % of households without electricity worldwide can afford PAYGo monthly payments for a solar kit—a rate that drops to 16 % in sub-Saharan Africa. Many families still fall back on short-term solutions such as candles, kerosene lamps, or shared diesel generators, which are more expensive in the long run.

This household vulnerability affects the financial health of solar companies. PAYGo repayment rates hover around 62 %, and one in four customers struggles to make payments. Most start-ups borrow in foreign currencies but are repaid in local money, exposing them to significant exchange-rate risk.

The challenges are compounded by inflation and the collapse of some local currencies. In Nigeria, for example, the cost of basic solar lanterns rose between 91 % and 300 % in local currency terms in 2023, offsetting price declines in components on global markets.

Finally, dependence on imports and the lack of local supply chains remain structural obstacles. Without local assembly, reliable maintenance networks, and affordable spare parts, systems frequently break down, leaving households without electricity again. The spread of low-quality solar products—which account for nearly 70 % of sales—undermines consumer trust. Limited technical skills for installation, maintenance, and repairs, especially in remote areas, further slows the large-scale rollout of off-grid solar solutions.

Muriel Edjo