A recently released report by GOGLA, the global off-grid solar association, shows a modest 3.6% uptick in investment into the off-grid solar sector. Off-grid energy companies attracted $315 million in new investment last year, according to the 2025 Investment Data Report, a slight increase from 2024. 57 companies received investment, down from 97 in 2024.
The report, supported by the World Bank’s Energy Sector Management Assistance Program (ESMAP), points to a sector gaining genuine commercial credibility, with larger companies accessing structured finance, local currency transactions and receivables finance at growing scale, and 18 new investors entering the market.
Nigeria stands out as one of 2025’s most significant developments, accounting for $114 million of total investment, making it the largest single recipient country on record. GOGLA highlighted that its emergence reflects what becomes possible when supportive policy, domestic finance, and targeted subsidies align. Banks in Nigeria, Kenya and Tanzania contributed to a record 47.2% local currency share of total investment.
“The investment going into established companies in 2025 reflects real and growing conviction in the sector, and that is worth celebrating. New investors are entering and equity is recovering, which tells us the appetite is there. The task now is to extend that confidence to the next generation of companies and to locally-owned businesses, so the whole sector can keep growing,” said Laura Fortes, GOGLA’s Associate Director of Finance & Investment.
GOGLA calling for increased capital inflows
The data also shows investment concentrating around established off-grid operators. The number of companies receiving investment fell from 97 in 2024 to 57 in 2025. Seed-stage funding nearly halved, and investment into locally owned companies fell to almost a tenth of the amount raised in 2023.
The past year saw 18 new investors enter the market, alongside a notable uptick in structured finance, receivables, and local-currency transactions. Meanwhile, average start-up equity ticket sizes climbed from $1.6 million to $6.5 million—a sign of larger, more confident rounds, though they were concentrated among fewer companies.
The sector however also experienced setbacks. Seed-stage funding contracted sharply, with the number of funded companies dropping from 73 to 35—a decline driven largely by shrinking donor grant programmes. Even more striking, investment into locally owned companies plummeted to just $9.9 million, down from $84.6 million in 2023.
Through the report, GOGLA calls on development finance institutions, philanthropies, investors and governments to shift focus from increasing the volume of capital to improving the architecture of how it is deployed. Specific recommendations include concessional equity and repayable grants for underserved operators, smaller-ticket financing facilities for the missing middle, and subsidy and results-based financing programmes designed to be accessible to a broad range of companies, not only large-scale implementers.
