The solar lantern is a revolutionary piece of technology.

Operating with a small in-built solar panel, connected to a battery and using an LED light bulb, it can transform how rural communities see the world.

Its use in places without access to mains electricity has taken off in the past 15 years, alongside the wider growth in solar power around the world.

An estimated 600 million people in sub-Saharan Africa still live without reliable access to electricity, according to the World Bank. The introduction of solar power – coupled with energy-efficient lighting – is key in tackling this problem.

Many villages not served by national grids are forced to use kerosene lamps and candles, or burn straw in the evening, which is costly and dangerous to human health. London-based think-tank ODI Global estimates that low-income households in Africa spend US$6.5 billion a year on such inefficient lighting options.

Solar power changes the equation, allowing streets to be lit, children to study at night, and a sense of security to exist. Greater electricity access enables farmers to work an extended day and use solar-powered irrigation and cooling systems to grow and process their crops.

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“Reliable and affordable energy creates economic transformation,” said Eva Roig, a spokesperson for GOGLA, an Amsterdam-based trade body for the off-grid solar energy industry. The organisation estimates that US$9 billion in additional income has already been created by businesses as a result of switching to solar in place of fossil fuel alternatives.

“In off-grid locations, lack of energy restrains farmers from higher productivity and, with a growing young population, offers few employment opportunities or possibilities to create new businesses,” she added.

The challenge for off-grid solar power is to reach the hundreds of millions of people in need and create a stable market for its continuance.

Electric power key to tackling poverty

UK charity SolarAid was founded in 2006 with the aim of creating a world “where everyone has access to clean, renewable energy” and eradicating the use of kerosene lamps in Africa.

A couple of years later it set up SunnyMoney, a social enterprise which uses a community distribution model to raise awareness and increase demand for solar power. Local teachers explain how the technology works and independent agents sell the products. SunnyMoney supports them with logistics, training and engagement along the way.

“We believe that access to electricity is fundamental in the fight against poverty. Access to solar lighting and power means that families are saving money, extending productive hours, increasing access to study hours and also increasing safety,” explained John Keane, CEO at SolarAid, based in Zambia. 

The charity has reportedly helped 12 million people through the social enterprise, with projects in Senegal, Uganda, Tanzania, Kenya, Zambia and Malawi.

While models such as SunnyMoney can stoke the solar market, larger businesses need to step in and supply the kit itself. D.light is one of the solar companies that has done more than most to bring affordable solar power to some of the remotest villages in Africa.

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The US company is deeply embedded across the continent, with a vision to make solar products accessible to low-income families. The business had one of its most successful years in 2024, and says it reached 24 million people with solar systems last year alone.

But it hasn’t always been plain sailing. “I don’t think we realised how difficult it would be to commercialise and scale off-grid solar products,” d.light’s founder and CEO, Nedjip Tozun, commented in an interview last year. 

While its products now power around 32 million homes, building that capacity took time, patience and good fortune. Tozun explained that during the early years in the mid 2000s the difficulties lay in building a high-quality product which could be distributed to remote areas and with financing to enable people to pay for it. The company was forced to create those capabilities in-house in order to scale and overcome external barriers.

Funding energy efficiency to expand use

Improving energy efficiency is one such challenge the off-grid industry has sought to solve. Solar devices need to hold the sun’s energy long enough to be used for a wide range of purposes. This is where LED lighting comes in.

“Over the past 10 years, the growing availability of increasingly energy-efficient appliances, such as LED lighting is transforming what’s possible,” said Keane. “It’s the foundation for designing inclusive solutions that deliver long-term impact.”

The main benefits, he explained, is that LED lighting drastically reduces the amount of electricity needed to light homes, enabling households on lower incomes to meet their essential needs with small solar systems.

As off-grid solar kits are small by design, using the power with efficient lighting or low-voltage appliances, such as refrigerators, means the energy goes further and is matched to the user’s needs.

Pairing solar with technologies to support economic activity, so-called “productive use”, is a growing area within the industry. Solar can be applied in a range of commercial settings, and on any number of appliances, from sewing machines to water pumps, or from seed pressers to ceiling fans. But to do so effectively those appliances need to be energy-efficient and upgrading is expensive. 

New financing initiatives such as PUFF – the Productive Use Financing Facility – are playing a role by offering subsidies to suppliers to help bring down the costs for farmers and businesse