High-productivity solar technology attracts investors as funding for the off-grid solar power sector slumps globally

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Despite a 43% funding slump recorded in the global off-grid solar power sector last year, investment in productive use of renewable energy (PURE) technologies, particularly in the solar irrigation and cold chain sectors, continues to grow. Interest in the house increased.

PURE Technologies raised $65 million in 2023, double the previous year, due to increased investor interest in the sector, according to GOGLA, the global association for the off-grid solar energy industry. Among the startups that raised funding in this space last year is his Figorr, which provides storage and transportation for temperature-sensitive products.

PURE technologies primarily include home appliances and products such as solar-powered water pumps, refrigerators, cold rooms, and agro-processing equipment that enable improvements or new revenue-generating activities in the agricultural sector.

Laura Fortes, senior access to investment manager at GOGLA, told TechCrunch that the technology is gaining interest because of its transformative impact on lives through innovation.

“These solutions will mitigate climate change, increase resilience and increase income opportunities for beneficiaries such as small farmers and clinics. Especially in the face of climate change, outdated diesel water pumps and Replacing coolers that rely on fossil fuels will strengthen resilience and incomes for smallholder farmers,” Fortes said.

Overall, the off-grid solar power sector raised $425 million in 158 deals last year, of which $281 million was in debt. Sun King, d.light, Engie Energy Access, M-KOPA, Zola and Bboxx accounted for 58% of the total investment. This shows that most of the funding went to start-ups and scale-ups based in Africa, with these ventures offering products and solutions to address the lack of energy access. .

Seventy-five percent of the world’s population lacks access to electricity, 46% of whom are in Africa. However, equity investment in home solar power startups remains low, a worrying sign that GOGLA is failing to incubate new companies focused on electricity access, which is essential to achieving electrification goals. states that it shows.

“Investment data for 2023 shows that without further risk mitigation measures and concessional financing, off-grid solar power will not reach the scale needed to meet global development goals. Catalyst There are already many examples of successful blended finance structures, but we need many more if we are to increase the industry’s capital by seven times,” Fortes said.