NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Key highlights

• 85 companies received an investment of $425 million: $281 million in debt, $128 million in equity, and $15.5 million in grants.

• Productive Use of Renewable Energy (PURE) deals are spearheading the industry’s funding increase, reaching $65 million, double the amount from 2022.

• Compared to 2022, locally-owned companies received 2X financing and female-owned and managed companies saw a 400% increase.

• Start-up and seed companies are on a positive trend, reaching respectively $148 million and $24 million in 2023. Those focusing on PURE are receiving substantial support, constituting 34% of the total investment in startups, and reflecting a growing confidence in this segment, with solar irrigation and cold chain technologies having benefited the most.

• Equity investments in household solar start-up and seed companies have recovered from the unusually low levels of 2022, but they have yet to reach the heights witnessed in 2021 ($46 million), 2020 ($62 million), and 2019 ($51.7 million). The downward trend of equity investment in household solar signals a concerning failure to nurture new companies focused on electricity access that will be crucial for achieving electrification goals.

• Off-balance sheet financing offers significant promise as a viable financing mechanism for the sector. It accounts for 75% of the total committed debt amounts although it remains predominantly accessible to industry leaders. Wider adoption could catalyze further growth and innovation.

If you want to dig into the data with industry leaders, you can join our webinar tomorrow 25 April and you can access the full updated Investments Database here (available 25 April).

About GOGLA

GOGLA is the global association for the off-grid solar energy industry. Our 200+ members provide millions of low-income and climate-vulnerable people with affordable, high-quality products and services; rapidly increasing customers’ productivity, connectivity, and resilience.

To enable sustainable businesses and accelerate energy access, we provide market insights, standards and best practice, and advocate for catalytic policies, programmes and investment. Working with partners, our pioneering industry can improve the lives of 1 billion people by 2030.

To find out more, visit www.gogla.org.

About GET.invest

GET.invest is a European programme that mobilises investments in renewable energy. It works with project and business developers, financiers and regulators to build sustainable energy markets in partner countries. Services include finance access advisory, market information, a funding database, and matchmaking events. Since 2022, GET.invest powers the Team Europe One Stop Shop for green energy investments, an access point for information about and facilitated access to European support and financing instruments for energy projects and companies in Africa. The programme is supported by the European Union, Germany, Norway, the Netherlands, Sweden, and Austria.

To find out more, visit www.get-invest.eu.