Ethiopia Solar Photovoltaic (PV) Market Size Zooming 3.6X to Reach USD 1.9 Billion by 2031

Published | 11 August 2025

Ethiopia Solar Photovoltaic (PV) Market is booming primarily due to the government’s increasing support to tap abundant solar resource for rural electrification, declining PV costs, ambitious climate goals, rising adoption of mobile banking, and growing international aid and private investments.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated Ethiopia Solar Photovoltaic (PV) Market size by value at USD 519.75 million in 2024. During the forecast period between 2025 and 2031, BlueWeave expects Ethiopia Solar Photovoltaic (PV) Market size to boom at a robust CAGR of 20.09%, reaching a value of USD 1,871.72 million by 2031. The rapid expansion of Ethiopia Solar Photovoltaic (PV) Market is driven by a combination of economic, environmental, and policy factors. Abundant solar resources across the country provide a strong foundation for solar energy development. Government initiatives, such as the National Electrification Program, aim to expand energy access, especially in rural areas. Declining costs of PV technology and systems make solar increasingly affordable. International aid and private investment further accelerate growth. Solar PV also supports productive uses like water pumping and agriculture, enhancing livelihoods. Climate goals and commitments to reduce CO₂ emissions add urgency, while mobile banking and PAYGO models improve affordability and adoption.

Opportunity – Government’s Increasing Support for Healthcare Initiatives

Ethiopia Solar Photovoltaic (PV) Market is gaining momentum through strong government backing for health-focused electrification programs. The Health Facility Solar Electrification (HFSE) initiative, led by the Ministry of Health in collaboration with Gavi, UNICEF, and WHO, aims to have solar-power over 1,000 health care facilities by 2025. This includes 300 remote centers prioritized for solar expansion, directly benefiting reproductive health services such as maternal, infant, and post-natal care. By integrating solar energy into health infrastructure, Ethiopia is improving service reliability, expanding access to care in underserved areas, and building climate-resilient systems that support broader public health goals.

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Off-grid Solar Systems Segment Dominates Ethiopia Solar PV Market ​

Off-grid solar systems represent the largest and most dynamic part of Ethiopia Solar Photovoltaic (PV) Market. With over 60 million Ethiopians lacking access to grid electricity, off-grid solutions—particularly Solar Home Systems (SHS)—have become essential for rural electrification. Supported by international donors and mobile banking platforms like HelloCash, companies such as HelloSolar have successfully deployed thousands of SHS units in underserved regions. These systems provide basic energy services like lighting, phone charging, and radio access, improving quality of life. The off-grid segment’s scalability, affordability, and adaptability to remote areas make it the cornerstone of the expansion of Ethiopia Solar Photovoltaic (PV) Market.

Impact of Escalating Geopolitical Tensions on Ethiopia Solar Photovoltaic (PV) Market 

Escalating geopolitical tensions could pose significant challenges to Ethiopia Solar Photovoltaic (PV) Market. Disruptions in global supply chains could delay the import of essential solar components, increasing costs and project timelines. Political instability in neighboring regions may also affect cross-border energy collaborations and foreign investment confidence. Ethiopia’s reliance on international aid and donor-backed solar initiatives makes it vulnerable to shifting diplomatic priorities. Additionally, currency fluctuations and trade restrictions driven by global conflicts can hinder procurement and financing. Despite these hurdles, Ethiopia’s commitment to energy independence and climate resilience continues to drive solar adoption, though progress may be uneven amid geopolitical uncertainty.

Competitive Landscape

Ethiopia Solar Photovoltaic (PV) Market is highly fragmented, with numerous players serving the market. Major companies dominating the market are Ethiopian Electric Utility (EEU), Ethiopian Energy Authority (EEA), Ethiopia Solar Energy Development Association (ESEDA), Power East Africa Engineering PLC, Solar Development PLC, Rensys Engineering and Trading, dVentus Technologies, and GIZ (German Development Cooperation). The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in Ethiopia Solar Photovoltaic (PV) Market.

Don’t miss the business opportunity in Ethiopia Solar Photovoltaic (PV) Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and Ethiopia Solar Photovoltaic (PV) Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Ethiopia Solar Photovoltaic (PV) Market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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