Market for Solar Home Systems (SHS)
Overview
In 2000, about 1.3 million households in developing countries used solar home systems (SHSs)[1].
In 2018, the number grew to over 4 million households. This equals a annual growth of 23% since 2012.[2] The sector’s growth since 2010 has been impressive.[3]
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 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)
The most mature off-grid PV markets exist in:
- India (650,000 installed SHSs)
- Bangladesh (550,000 SHSs)
- Indonesia (250,000 SHSs)
- China (150,000 SHSs)
- Kenya (120,000 - 250,000 SHSs)
- Morocco (80,000 SHSs)
- Mexico (80,000 SHSs)
- Nepal (69,411 SHSs)
- South Africa (50,000 SHSs)
- 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. In 2002, PV module manufacturers existed in:
PV cells are manufactured in:
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)
Further Information
References
- ↑ Nieuwenhout, 2002
- ↑ 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
- ↑ 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
