View source for Market for Solar Home Systems (SHS)


= Overview<br/> =

In 2000, about 1.3 million households in developing countries used [[Solar Home Systems (SHS)|solar home systems (SHSs]])<ref name="Nieuwenhout, 2002">Nieuwenhout, 2002</ref>.

In 2018, the number grew to over 4 million households. This equals a annual growth of 23% since 2012.<ref name="https://www.mckinsey.com/business-functions/sustainability-and-resource-productivity/our-insights/bringing-solar-power-to-the-people?cid=other-soc-twi-mip-mck-oth-1806&kui=PiQI4cNVIZ9q_0gdXVJsnQ">https://www.mckinsey.com/business-functions/sustainability-and-resource-productivity/our-insights/bringing-solar-power-to-the-people?cid=other-soc-twi-mip-mck-oth-1806&kui=PiQI4cNVIZ9q_0gdXVJsnQ</ref> The sector’s growth since 2010 has been impressive.<ref name="2018 Off-Grid Solar Market Trends Report. https://www.gogla.org/sites/default/files/resource_docs/2018_mtr_full_report_low-res_2018.01.15_final.pdf">2018 Off-Grid Solar Market Trends Report. https://www.gogla.org/sites/default/files/resource_docs/2018_mtr_full_report_low-res_2018.01.15_final.pdf</ref><br/>

McKinsey expects up to 150 million households will benefit from SHS by 2020 (market potential). In order to realise this market potential five factors are critical (off-grid regulation, business environment, logistics and channels, affordability and WTP, ease of payment). Countries have [https://www.mckinsey.com/business-functions/sustainability-and-resource-productivity/our-insights/bringing-solar-power-to-the-people?cid=other-soc-twi-mip-mck-oth-1806&kui=PiQI4cNVIZ9q_0gdXVJsnQ#0 different state of readiness]: Kendallranks the 39 countries that compose more than 90 percent of the global unelectrified population. (2018)

= Solar Home System (SHS) Markets by Country (2015) =

<u>The most mature off-grid PV markets exist in:</u>

*[[India Energy Situation|India]] (650,000 installed SHSs)
*[[Bangladesh Energy Situation|Bangladesh]] (550,000 SHSs)
*[[Indonesia Energy Situation|Indonesia]] (250,000 SHSs)
*[[China Energy Situation|China]] (150,000 SHSs)
*[[Kenya Energy Situation|Kenya]] (120,000 - 250,000 SHSs)
*[[Morocco Energy Situation|Morocco]] (80,000 SHSs)
*[[Mexico Energy Situation|Mexico]] (80,000 SHSs)
*[[Nepal Energy Situation|Nepal]] (69,411 SHSs)
*[[South Africa Energy Situation|South Africa]] (50,000 SHSs)
*[[Sri Lanka Energy Situation|Sri Lanka]] (21,000 SHSs).

Kenya and China are by far the fastest growing markets, with annual growth rates of 10% – 20% in recent years.

= Manufacturing =

Many of these countries also manufacture components for SHS, such as batteries, controllers, and lights. <u>In 2002, PV module manufacturers existed in</u>:

*[[India Energy Situation|India]] (23 firms)
*[[China Energy Situation|China]] (7 firms)
*[[Thailand Energy Situation|Thailand]] (3 firms)
*[[Namibia Energy Situation|Namibia]] (1 firm)

<u>PV cells are manufactured in:</u>

*[[India Energy Situation|India]] (9 firms)
*[[China Energy Situation|China]] (7 firms)

In recent years, the manufacturing base in China has grown exponentially. Gabler (2008) and Photon (2008) estimate for 2007 that newly installed off-grid PV capacity in developing countries lies at around 50 MWp per year (compared to 150 MWp global annual market volume for off-grid PV – including off-grid PV for recreational uses and industry, such as telecom repeaters, worldwide).

= System Prices =

At system prices of about 10 €/Watt, total turnover in developing countries can be estimated to account for 0.5 € billion. (2015)<br/><br/>

= Further Information =

*[[Market for Solar Home Systems (SHS) in East Africa|Market for Solar Home Systems in East Africa]]
*[[Solar Home Systems (SHS)|Solar Home Systems (SHS)]]
*[[Portal:Solar|Solar Portal on energypedia]]

<br/>

<br/>

= References =

<references />

[[Category:Solar]]
[[Category:Solar_Home_Systems_(SHS)]]