Investments in off-grid solar companies at record level
Post date: 15/06/2022 - 13:30
The Global Off-Grid Lighting Association (GOGLA) has presented its annual evaluation of investments in companies active in the off-grid solar power systems sector. According to the report, the inflow of capital into this sector, which is particularly important for rural electrification in regions without a functioning power grid, increased by 44 percent in 2021 compared to the previous year, reaching a high of $450 million.
However, not only is this still a fairly low level of investment overall, there also was no significant increase in the previous five years. Since 2016, the figures have hovered around the $300 million mark.
The GOGLA evaluation currently includes around 120 companies in the founding and startup phase with total investments of up to $100 million to date and the »Big 7« in the sector that have already acquired more than $100 million. The majority of investments were in the form of debt commitments ($326 million), followed by equity ($126 million). $10 million flowed as venture building grants.
Despite the high rate of increase this year, the evaluation concludes that lack of access to capital remains an acute problem in the offgrid sector, especially for startups.