New Investment Data: Global Off-Grid Solar Investments at a record sum in 2021
16 June 2022| GOGLA, the global association for the off-grid solar industry, supported by GET.invest, has recently updated its Investment Database, showing a 44% growth in 2021, with the total investment reaching a record $450M within the year. This is a positive sign after a trend of stable investment flow over the past five years, indicating a new period of growth that should push the industry towards achieving universal energy access by 2030.
Profitable established companies are unlocking large-scale climate finance
Climate-aligned and impact-driven investors have been particularly interested in entering the sector since off-grid solar aligns with their social, economic and environmental strategies. Although not part of the 2021 results, the $260M Sunking equity raise in 2022 is a good example of this.
Start-up companies need more equity and debt
Companies in the early stages of growth were more vulnerable to the negative impacts of the COVID-19 pandemic, which translated into an increased difficulty to attract early-stage capital, specifically equity.
In 2021, the total equity and debt investment into startup companies grew but it hasn’t yet reached pre-pandemic levels. Additionally, just to achieve SDG7 and climate goals in Africa, funding would still need to grow multiple times over, particularly in the form of patient equity.