The analysis focuses on stand-alone off-grid solar technologies such as solar lanterns, multi-light systems and solar home systems, which together account for about 85% of the global off-grid electricity market. It is based on a comprehensive literature review and interviews with experts.
The authors discuss the development benefits of off-grid solar, the climate mitigation benefits, the benefits for adaptation and resilience, investment needs and challenges, and multilateral climate finance, and finally lended finance, carbon markets and bonds.
The brief sets out key strategies for climate finance to scale up investments in off-grid solar, as follows.
- offer more concessional financing for early-stage business and market
- expand the use of blended finance to de-risk investments and crowd-in
- help off-grid solar companies to access local-currency loans.
- establish a uniform methodology to assess the climate benefits of off-grid solar, and
- mobilize debt finance from the labelled bond market for off-grid solar companies.