Off-grid Solar Product Sales in India drop as the Country Achieves 100% Electrification

The off-grid solar products in India witnessed a decline in sales in the first half of 2019. The off-grid solar products are mostly used for lighting homes and powering mobile phones in our country. According to a report from the Global Off-grid Lighting Association, the 100% rural electrification program in India was the primary reason for the decline. Also, the demand for small solar systems (comprising of a solar panel, battery and a light point) was on the rise, hinting towards the fact that user consumption and demand patterns are changing. India is one of the largest markets for off-grid solar products globally. Solar home systems sales crossed 50,000 units for the first time.

According to the SAUBHAGYA (Sahaj Bijli Har Ghar Yojna), household electrification in the country currently stands at 99.9%, and more than 20 million Indians have benefitted from this scheme. The country has the potential to save Rs.129/ house/ month by swapping kerosene with a solar lantern.

However, solar lantern revenues witnessed the steepest fall (also, affected by strict regulations on the import of solar lanterns into India). Sales of solar fans also halved to 15,000 units in the first half of 2019 from 30,000 units. These products are, however, on arise at a global level. These off-grid solar lighting products are contributing to a large extent towards reducing the overall carbon footprint. Not only have these products contributed ~INR 345 billion in additional income, but they have also reduced 66.6 million metric tons of carbon dioxide emissions globally, since the second half of 2010. In addition, these have also contributed ~INR 740 billion savings in energy expenditure and improved the lives of nearly 280 million people globally. The solar lantern is the most loved product in Sub-Saharan Africa and South Asia.

There are options for paying for these off-grid solar products in installments if a user cannot afford them upfront. The pay-as-you-go business model is also successful recording one million unit sales and accounting for 24% of global sales volumes.