Nigeria has emerged as the central force behind West Africa’s renewed growth in the off-grid solar industry, according to the November Semi-Annual Global Off-Grid Solar Market Report released by GOGLA, the global body representing the off-grid solar sector. The findings show that the region’s solar market—after experiencing a slowdown in 2024—is regaining momentum, with Nigeria’s rapidly expanding consumer base and policy reforms driving much of the recovery.
Across West Africa, sales of solar energy kits (SEKs) increased by 22 per cent in the first half of 2025 compared with the same period in 2024. While regional sales have not yet returned to their record levels of 2023, the upswing signals renewed confidence among manufacturers, distributors, and investors. GOGLA’s summary notes that Nigeria’s resurgence is pivotal, stating, “Sales are picking back up in Nigeria and are potentially back on a path to growth.”
Within Nigeria, SEK sales grew 33 per cent year-on-year in the first half of 2025. The report—authored by GOGLA’s Senior Manager for Market Insights and Data, Oliver Reynolds, and Market Intelligence Analyst, Serra Paixão—attributes this surge in part to the early rollout of the Distributed Access through Renewable Energy Scale-up (DARES) Nigeria programme, a federal initiative offering targeted subsidies to lower the cost of off-grid systems and strengthen distribution channels.
“The effects of the new subsidy programme under DARES Nigeria are starting to show,” the authors noted, highlighting its role in lifting consumer demand and improving affordability for rural and peri-urban households. Analysts also point to increased investor confidence and renewed interest from regional distributors seeking to expand their PAYGo portfolios.
One of the most significant developments recorded in the report is a market shift toward Pay-As-You-Go (PAYGo) financing, which for the first time has overtaken traditional cash sales of solar kits in the region. GOGLA describes this as “early evidence of a major shift in the market,” as flexible payment plans continue to broaden access for lower-income consumers who previously could not afford the upfront cost of solar systems. Industry observers note that this shift may encourage more private sector funding and spark product innovation tailored to low-income households.
Beyond solar kits, the region also saw a 27 per cent rise in appliance sales, largely driven by Nigeria’s sharp increase in fan purchases. The report states that climbing temperatures, growing energy needs, and improved SEK penetration are contributing to this surge. However, television sales across West Africa remained stagnant, yet to recover the levels seen between 2022 and 2023. Sales of agricultural and commercial appliances—such as irrigation pumps and cooling units—also rose year-on-year, with GOGLA indicating that upcoming DARES subsidies for productive-use equipment may further boost these categories in future reporting cycles.
Despite overall regional growth, the report warns that progress is uneven. Burkina Faso recorded an 83 per cent decline in SEK sales, which GOGLA links to recently introduced import regulations requiring local sourcing quotas for solar panels. The organisation cautioned that such policies, while aimed at stimulating local manufacturing, have temporarily disrupted supply chains and restricted product availability.
GOGLA also emphasised the broader role of public support schemes across Sub-Saharan Africa, noting that well-designed subsidies can accelerate electrification, while poorly coordinated ones risk destabilising markets. Declines in countries like Rwanda and Mozambique underscore the need for long-term strategies to ensure continuity once subsidy cycles end.
Overall, the 2025 outlook suggests a potential turning point for the off-grid solar sector in West Africa. With Nigeria at the centre of the rebound—and PAYGo models gaining traction—the region may be entering a new phase of expansion shaped by stronger policy frameworks, maturing distribution networks, and rising consumer demand for affordable renewable energy solutions.
Source:Africa Publicity
