How the Economy is Transforming Thanks to Off-Grid Solar Energy
Lilongwe – Like many other African countries, Malawi faces significant challenges in accessing energy. As of 2024, only 26% of the population has regular electricity access – 11.3% through the grid and 14.6% via off-grid systems. With most people living in rural areas dispersed widely, extending the grid is often prohibitively expensive, slow, and frequently unviable. Compounding this, recent global economic shocks have further constrained investment in large-scale infrastructure.
As a result, the lives of millions of Malawians have long come to a standstill after sunset, cloaking them in almost complete darkness. Children struggle to study, businesses close their doors early, and community life halts. Rural families have little choice but to rely on candles, kerosene, or battery-operated torches—costly and polluting alternatives that undermine health, education, and economic opportunities.
However, prospects are brightening thanks to advancements in distributed renewable energy technologies—including solar-powered lanterns, home solar systems, and microgrids—which can be rapidly deployed, adapted flexibly to meet varying levels of household income, and priced more affordably.
As realistic, sustainable, and inclusive solutions to the energy access challenge, distributed renewable energy systems are driving economic growth by enabling small enterprises to operate after dark, creating jobs in the clean energy sector, and opening up opportunities in education, healthcare, agriculture, and other fields.
To capitalize on the opportunities offered by off-grid solar energy, the Government of Malawi has launched a series of new initiatives and programs. A notable example is the NNNF (Njour Njour Njour) Fund, which was inaugurated in 2023 with $20 million from the World Bank through the Electricity Access Project in Malawi. This fund is designed to expand rural electrification, providing affordable financing and support grants to off-grid solar companies, thus helping to reduce consumer costs and make home solar systems affordable.
By focusing on tier-one small systems, this approach has successfully broadened access to electricity in Malawi, already surpassing the original goal of reaching 250,000 households by June 2025. Furthermore, around 10% of new home solar systems are being used to generate income and operate small businesses.
The success of the fund has led to a rapid increase in private sector investment. For instance, local women-led companies such as Zuwa and Yellow provide on-demand solar systems that align with rural income patterns, supporting unbanked customers, while SolarAid Malawi delivers electricity through its energy-as-a-service model. Thanks to these efforts, Malawi aims to achieve 1.55 million off-grid connections by 2030.
To further this ambition, new energy cooperatives are deploying microgrids in high-demand areas. These cooperatives will help maintain a focus on productive electricity uses (like oil extraction, welding, and baking), providing energy for agricultural needs such as irrigation and processing.
Through its Mission 300 Energy Charter, Malawi aspires to achieve 70% access to electricity nationwide by the end of the decade, setting an example for others across the Global South. The fund has demonstrated that public financing can unleash private sector energy supply, enabling solar companies to swiftly and affordably reach rural households.
However, support grants are only one lever. In 2022, we also eliminated taxes on off-grid solar products, services, and equipment to lower costs and bring solar energy closer to low-income households. While grant support from the fund has been beneficial, clear and consistent tax frameworks and policies that underpin this support are equally crucial.
Now, we look beyond mere access to explore how off-grid solutions can serve broader development goals. The economic rational is clear: access to energy empowers Malawians to work, study, operate small businesses, irrigate farms, store food, and access mobile money after dark. These activities increase income, deepen markets, and ultimately help expand the tax base.
Proactive and responsible fiscal policies not only bolster energy access but can also drive rural development and economic growth. Indeed, off-grid energy is breathing new life into local economies, as the sector itself creates thousands of jobs. Solar companies are training and hiring sales agents, technicians, installers, customer service teams, and community representatives. These jobs often replace informal labor or subsistence farming, providing skills, steady income, and long-term career pathways. Many of these roles are filled by women and youth, fostering greater inclusion and community leadership.
In addition to job creation, reliable energy access enables new livelihoods—supplying everything from hair salons and radio stations to farms and restaurants with power. Malawi is proving that clean energy and economic growth can coexist, paving the way for the next generation.
Crucially, off-grid solar technologies are delivering energy to communities that have long been left behind by traditional infrastructure. These solutions are no longer niche or untested; they have become integral to our comprehensive energy acquisition strategy. By combining public commitments, private innovation, and integrated planning, we are building energy systems that reflect today’s rural and urban realities.
Now, momentum is building globally behind these technologies, with initiatives like Mission 300 signaling stronger international political will. However, we must not succumb to complacency. Clean energy is not a luxury; it is the foundation of modern life, and millions are still waiting to access it.
