Market Research on Off Grid Solar Market in India

1. OFF GRID SOLAR MARKET – FOCUS ON INDIA

2. 2X DEMAND of electricity by 2050
Due to the rise of population & electrification of
mobility (EVs)
50% + CONTRIBUTION of Renewables by 2035
Wind & solar energy are projected to contribute
upto 73% of the demand by 2050
SELF GENERATING communities will flourish
Distributed Energy Resources would be adopted to
address the challenge of no/poor access
Solar is the next BIG BET
Huge investments to improve solar infrastructure by
states as well as private players
ERA OF DIGITAL – more power to user
IoT & Analytics driven distribution & modernisation,
empower user to monitor, enabling transparency
The drop in expected investments (2020) across all the segments is due
to the delays & lowered caused by the uncertainties
Global Power Outlook
With the onset of “Electrification + Digital” economy, Solar energy would play a pivotal role in catering to the increasing demand of
electricity

3. Off Grid Solar (OGS) – High Potential & Fast growth market, globally
African & South Asian region have the huge OGS market potential, owing to the higher concentration of no/unreliable grid connection
$ 1.7Bn+ Market in 2019
@ 30%+ CAGR (2017-19)
1.8Bn+ Potential customers
Total Addressable Market with
no/poor access to electricity
823Mn+ customers by 2030
~420Mn customers till 2019
OGS Fast Facts
Market Penetration, Live Products & potential market for profile countries
~84Mn products are live facilitating 420Mn+ customers
Overall penetration rate of 17% represents the huge potential
market for OGS products, globally

4. Growth opportunities with limitations
With barely 20% OGS market penetration & 11Mn+ households under no/unreliable GRID connection, India is a market with great
opportunities
CONSTRAINTS
MARKET SEGMENTATION
• High setup costs
• Most effective in Tropical weather – Climate dependent
• Large installation space requirement
• Infrastructure for power storage
GROWTH DRIVERS
TARGET CUSTOMERS
• Rising cost of conventional power
• Depleting fossil fuel reserves
• Govt. driven subsidy schemes (KUSUM, SAUBHAGYA, MNRE-III.etc.)
• Zero running costs
• Easy to install anywhere
• Rural population with unreliable/no access to Power
• Semi Urban households with unreliable grid connections
• Small or Microenterprises
• Public utilities (Hospitals, schools, police stations, street lights Etc.)

5. 38Mn+ Households in India would have
access to No/Unreliable GRID connection by
2030 – World Bank (2020)
Shift of FOCUS from lighting solutions to End-to-End electrification of households
Indian customers are increasingly shifting towards more utilitarian mode of Off Grid Solar Products by switching to Solar Home Systems
from basic lantern, owing to the increased support
Sales Evolution Of OGS products in India OSG Market in India was valued at $105 Mn in 2018
OSG market in India peaked in 2018 due to the increased
demand of basic lanterns
Projected OSG Market in India to reach upto $327Mn by 2023
In contrast to the falling volumes, market has been rising due to
the increased demand of Solar Home Systems (SHS) and Multi
light systems
SHS : End to End solution for customer
Demand for SHS has been on the rise due to its capacity to run
household solely through Solar, since majority of the customers
have access to No/Unreliable grid connection
Subsidized purchase rates & pocket friendly payment terms
Upto 30% Central Financial Assistance (CFA) on the benchmark
cost of the systems followed by PAYgo (Pay-As-You go), help the
customers in mitigating the high setup costs

6. Portfolio 1kW | 2kW | 3kW | 5kW | 6kW | 8kW | 10 kW
Total Cost INR 92k – 735k INR 91k – 735k INR 130k – 875k
Cost per watt INR 73 - 92 INR 73 - 91 INR 87 -130
Sales Channels eCommerce | Store | Website |
Potential Ventures of OGS Markets
• Cold Storage centres
• Electric Vehicle Charging Station
• Fuel stations
• Railway station (Platform only)
• Bus stations
Highly regulated industry with presence of few competition
Indian Off Grid Solar Home Systems market is highly fragmented with presence of few prominent players who occupy significant market
share providing end to end OGS solutions
Prominent Players in Indian OGS market Synthesis of leading OGS Products Manufacturers – Products & Capabilities*
Sources
• https://www.gogla.org/sites/default/files/resource_docs/global_off_grid_solar_market_report_h22019.pdf (GOGLA)
• https://www.mckinsey.com/~/media/McKinsey/Industries/Oil%20and%20Gas/Our%20Insights/Global%20Energy%20Per
spective%202019/McKinsey-Energy-Insights-Global-Energy-Perspective-2019_Reference-Case-Summary.ashx ( McKinsey)
• https://webstore.iea.org/download/direct/3003 (IEA)
• https://www.lightingglobal.org/wp-
content/uploads/2020/03/VIVID%20OCA_2020_Off_Grid_Solar_Market_Trends_Report_Full_High.pdf (World Bank)