Sun shines on off-grid solar power

As India is racing against time to achieve 100 gw of grid-connected solar power by 2022, standalone solar applications, known as off-grid solar, is fast catching up in the country, particularly in rural areas, to provide the much-needed electricity in homes in remote villages.

Though the electrification of over six lakh villages in the country has been achieved, including last 19,000 villages by the government, still 40 million rural households in India do not have affordable electricity and off-grid solar provided the much-needed answer, according to World Bank's private lending arm, International Finance Corporation (IFC).

According to Global off-grid Lighting Association (GOGLA), India has now become the single largest market for distributed standalone solar products and represented over 33% of global volume share in the first half of 2018.

GOGLA's India head, Viraj Gada, told DNA Money that with the rapid growth of off-grid solar equipment, India is likely to have as many as 1.75 million solar pumps and just one off-grid solar item. The pumps are utilised for agriculture purposes. Solar lanterns, which is fast replacing kerosene lamps, is a cheap solution to electrify poor rural homes across the country. It is among the top selling and most popular off-grid solar equipment.

GOGLA, set up in 2012, has over 100 members world over and its mission is to help to build sustainable markets and affordable solar product services to households, business and communities in the developing world.

This is part of the World Bank's Lighting Global, which is a platform to support sustainable growth of the international off-grid solar market as a means of rapidly increasing energy access to 1.2 billion people without grid electricity in developing countries. Through Lighting Global, IFC and the World Bank work with GOGLA, manufacturers, distributors, governments, and other partners to develop the modern off-grid energy market.

As much as 3.7 million off-grid solar products were sold globally during the first half of 2018, a modest increase of 4%, compared to the same time a year ago. But with over one billion people worldwide still unreached by reliable electricity provision, the market continues to see vast untapped potential.

According to the 2018 Off-Grid Solar Market Trends report, off-grid solar devices sold to date are estimated to have penetrated around 17% of the global potential market. However, while the market as a whole might not be growing fast, with unit sales seemingly stagnating, "we are observing a noticeable shift into higher bracket product categories, with an increase in newly installed capacity, thanks largely to the steady growth of multi-light and solar home systems," Gada said.

During the first half of 2018, 26 mw of solar capacity was installed globally, a 40% increase compared again to the same period of 2017. This latest Global Off-Grid Solar Market Report presents sales and impact data for January to June 2018, reflecting the performance of almost 70 companies, which are GOGLA members and companies that sell Lighting Global quality-verified products.

A new insight revealed in this report highlights that, as a result of off-grid system ownership, an estimated $3.5 billion in additional income will be generated for households over the lifetime of the products sold to date.

Buoyed by the encouraging sale of off-grid solar equipment, the India Distributed Energy Forum and Expo (IDEF) has organised a two-day event in Noida near Delhi this month end, to showcase hundreds of solar appliances for domestic and industrial use across rural India. The expo is organised by GOGLA along with International Finance Corporation.

During the expo, there will be a conference aimed at exploring the future role of distributing standalone solar solutions that can play in complementing the government's efforts in providing universal energy access to all the citizens.

India, with its huge local market along with strong manufacturing capabilities, has the potential to become a global leader for distributed standalone solar energy solutions by becoming a global hub for innovations in technology and business models.

Keeping the private sector at the centre of these discussions, the event aims to fuel dialogues for efficient appliances in India to help consumers climb up the energy ladder and contribute in improving the livelihoods, agriculture, water and health.

Global organisations like Ashden, UK, which too would be participating. are supporting and promoting sustainable energy enterprises from around the world by rewarding innovators in the field of sustainable energy. "The Ashden Award has helped us be recognised among an exquisite group of entrepreneurs, providing us a platform to connect with donors, partners, policymakers, and the larger global community," Ajaita Shah, founder and CEO, Frontier Market told DNA Money.

Frontier Market through its solar sahelis, not only provides women with skills, employment and wages but provides solar home lighting and systems. Over 630,000 people are using this solar domestic lighting system in India, thus cutting down the use of kerosene and greenhouse gas emissions.

Programmes like lighting Asia/India programmes of IFC in collaboration with the private sector helps to remove market entry barriers, provide market intelligence, foster B2B linkages and raise consumer awareness on modern solar lighting options", said Anjali Garg, an energy expert in IFC. The programme is present in states of Bihar, Uttar Pradesh, Rajasthan, Odisha and Assam, where grid-connected power is still.

SHINING BRIGHT

• $3.5 bn – off-grid system can generate additional income for households
   
• 1.75 million – solar pumps India is likely to have going ahead
   
• 17% – off-grid solar devices sold in potential market globally
   
• 26 mw – solar capacity installed globally during first half of 2018