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Market for Solar Home Systems (SHS)

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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:

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


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