Access to reliable electricity is still out of reach, for nearly a billion people worldwide. But at the edge of the grid, something remarkable is happening - solar energy solutions are lighting up homes, powering businesses, and setting the stage for a new energy future. Still, we face a critical question: how do we close the vast, multi-billion-dollar gap in off-grid solar funding?

Off-Grid Solar: The Undeniable Impact

Off-grid solar systems don’t rely on conventional infrastructure. Instead, even a single panel can bring life-changing access to power for remote or underserved regions - whether it’s lighting, a small appliance, or the machinery needed to grow a local business.

A recent industry report highlights that by 2030, off-grid solar could be the most cost-effective solution to electrify up to 398 million people - over 40% of those lacking power today. That’s not just a statistic. It’s a massive impact.

Source: PVTech

The Investment Shortfall: Numbers That Matter

Yet, scaling up comes at a price. The same report reveals a sobering figure - $21.3 billion is required by 2030 to realize off-grid solar’s potential. That’s nearly six times the total investment this sector has received until now.

What does this mean?

• 50% Private capital (equity & debt)

• 50% Public capital (grants and subsidies)

• Annual need: Over $3.5 billion each year from 2026 to 2030

Can one sector shoulder this alone? Unlikely. It’s a collective effort.

Source: PVTech

The Funding Puzzle

So, how do we bridge the gap? Here are three key levers:

1. Diversified Capital Flows

Relying exclusively on international investors may not work, especially with currency risk and market perception challenges. Strengthening local currency funding, innovative loan structures, and co-financing with development banks can spread risks and encourage new capital.

2. Smarter Subsidies and Grants

Subsidies matter, but so does sustainability. Rather than blanket grants, targeted subsidies and results-based financing (such as specific incentives for new geographies or the lowest-income customers) have proven more resilient and impactful.

3. Fresh Business Models

Aggregation platforms allow smaller solar companies to combine customer receivables, unlocking better access to investment and enabling scale. Energy-as-a-service models, especially for public facilities such as schools and health clinics - have shown success, tying ongoing performance to revenue while lifting up whole communities.

Beyond Households: The Rising Role of Productive Uses

Think off-grid solar only powers homes? Think again. Increasingly, solar solutions are the backbone for small businesses - barbershops, local farms, even telecom towers. In fact:

• Over 80% of businesses using off-grid solar have reported increased incomes.

• Solar water pumps and other productive appliances are fueling economic growth at the grassroots.

Isn’t this exactly the outcome we want? More than just lights; a catalyst for prosperity and local value creation.

The Road Ahead: Challenges and Opportunities

Of course, this journey isn’t without roadblocks:

• Currency volatility, high inflation, and limited access to affordable finance can spook investors.

• The sector remains exposed to external shocks: global interest rates, regional instability, and regulatory hurdles.

However, what if public and private capital aligned, business models kept evolving, and local solutions shaped every investment? Could universal electrification really be within reach?

The answer depends on new ideas, nimble partnerships, and a willingness to back innovation, especially in the world’s hardest-to-reach markets.

Where Penomo Fits In

At Penomo, we’re focused on making climate and energy finance accessible, trackable, and efficient. Whether you're allocating capital, designing policy tools, or structuring finance mechanisms, we help you identify where your funding can unlock the most impact, especially in underserved markets like off-grid solar.

→ If you're building the future of energy, don’t let financing slow you down. Check if you qualify.

About Penomo

Penomo is a digital asset infrastructure platform specializing in tokenized energy and AI infrastructure financing. By transforming physical infrastructure into compliant digital securities, we connect private capital markets with institutional-grade renewable energy and AI investments. Through tokenization, Penomo is streamlining capital access, enhancing liquidity, and enabling efficient financing for the global energy transition and AI expansion.

The time to lead is now! Learn how Penomo can help you.

Connect with us: Website | X | Telegram | TG Announcements | Discord | LinkedIn