Close up outdoor view of solar panels located in a rural garden in Benin in order to supply energy for a pumping system. African agricultural picture of a traditional technology.

Off-Grid Solar PV Systems for Agricultural Use

Photo by Shutterstock / BOULENGER Xavier

Off-Grid Solar PV Systems for Agricultural Use

Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Alternative Energy
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
10% - 15% (CAGR)
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Clean water and sanitation (SDG 6) Affordable and Clean Energy (SDG 7) Zero Hunger (SDG 2)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13) Zero Hunger (SDG 2)

Business Model Description

Provide villages and SMEs with photovoltaic (PV) solar-powered products such as water pumps and pump controllers to extend water supply and improve food refrigeration. A Pay-As-You-Go framework can be implemented to allow low-income households to purchase solar products in affordable, incremental payments. Sector-specific products can be offered, including ice machines for fishermen, refrigerators for milk producers and farmers, and for markets. Installation and maintenance services can also be provided as an additional offer.

Expected Impact

Expand electricity access and contribute to improved health through better sanitation and food refrigeration.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Côte d'Ivoire: Savanes
  • Côte d'Ivoire: Zanzan
  • Côte d'Ivoire: Vallée du Bandama
  • Côte d'Ivoire: Montagnes
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Renewable Resources and Alternative Energy

Development need
Although renewables constitute a more inclusive energy source amid rising national demand and a prevalent energy poverty, production depends mainly on fossil fuels (69% of total). Increases in energy production enabled to triple the share of the population with access to electricity (95%) but the share of renewable energy in the mix, notably hydroelectric, has decreased between 2010 and 2023 (1, 2, 17).

Policy priority
Under the National Renewable Energy Action Plan 2014–2030 the government targets 42% of renewables in the mix by 2030, revised to 45%. It also aims to expand production capacity to 4,000 MW by 2025 and 5,000 MW by 2030. In its NDCs, Côte d'Ivoire pledged to increase electricity production from renewables. Expanding access to energy and renewables is also a central theme of the National Development Plan (Pillar 3) and is a crucial element of Côte d'Ivoire's goal of becoming an upper-middle income country, as set out in its Vision 2030 (3, 4, 5, 17, 18).

Gender inequalities and marginalization issues
While access to electricity has improved, it remains limited in northern areas. Some households in grid-connected settlements do not have access to electricity, and affordability remains a pressing concern. Energy poverty concerns 91% of the rural population (6).

Investment opportunities introduction
Africa's 3rd largest electricity network, Côte d'Ivoire can attract USD 9 billion investments in renewable energy by 2030. Biomass potential equals 16.7 million tons/year from cacao, palm oil, coffee, etc. while solar potential exceeds 1,900 kWh/m². This favors investments at utility scale but also for mini-grid and hybrid applications (7, 9).

Key bottlenecks introduction
Renewable projects are exposed to climatic events such as storms, high winds, floods and landslides which could damage production plants and electricity poles. They also require prior authorization from the Ministry of Energy to ensure alignment with national energy efficiency and sustainability goals, which may involve a lengthy process (9, 19).

Sub Sector

Alternative Energy

Development need
90% of the forests have vanished in 60 years, reducing agricultural productivity. Despite grid connection, high costs hamper electricity access, forcing reliance on fuels. Moreover, the country struggles with droughts, uneven water access (67% rural), and poor food market hygiene, exacerbating health risks. Biowaste recycling and green energies could mitigate these issues (4, 11, 12).

Policy priority
The programs "Electricité pour Tous" and "Accès à l'eau potable en milieu rural" aim for universal access to electricity and drinking water by 2025 and 2030, notably through solar-powered water pumps. These include financial inclusion and the installation of 1,200 water infrastructures. The nation plans to increase solar energy production, targeting an 7-9% share in its energy mix, supported by IFC's Scaling Solar program (8, 9, 14).

Gender inequalities and marginalization issues
In Côte d'Ivoire's northern regions, 87% of households use wood for energy due to high electricity costs, intensifying deforestation despite government subsidies for methane gas, which still pollutes significantly. Additionally, water access is closely linked to income, with informal city settlements and remote villages facing severe shortages, worsening their economic and health challenges (10, 12).

Investment opportunities introduction
Côte d'Ivoire supports investment in infrastructure to achieve universal water access by 2030 with a USD 5 billion pledge. The government also supports renewable energy projects such as the Aboisso biomass plant. Additionally, with financial backing from IFC and AfDB, developments such as the USD 400 million Azito power station have been launched (9, 14).

Key bottlenecks introduction
Poor road network maintenance may hamper biomass production, as traffic interruptions can halt operations. Additionally, dust accumulation and storms reduce solar plant productivity. Moreover, local residents may struggle to maintain and replace outdated water pumps, compounded by limited access to finance, especially in villages lacking government support (8, 13, 16).

Industry

Solar Technology and Project Developers

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Off-Grid Solar PV Systems for Agricultural Use

Business Model

Provide villages and SMEs with photovoltaic (PV) solar-powered products such as water pumps and pump controllers to extend water supply and improve food refrigeration. A Pay-As-You-Go framework can be implemented to allow low-income households to purchase solar products in affordable, incremental payments. Sector-specific products can be offered, including ice machines for fishermen, refrigerators for milk producers and farmers, and for markets. Installation and maintenance services can also be provided as an additional offer.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

10% - 15%

In Cote d’Ivoire, applications of solar power to agriculture and productive uses such as solar pumping have a high potential due to the fact that about 50% of households without access to electricity own around 70% of the agricultural land. Investments could tap into a continent-scale expansion potential of CAGR of 11.70% between 2024 and 2030 (44, 46).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

10% - 15%

A benchmark study in Côte d’Ivoire showcases a company that provides decentralized solar systems for productive use such as solar pumps through last mile distribution of pay as you go products and is expected to generate an IRR of 13% in 3.8 years for a USD 2 million investment (39).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Short Term (0–5 years)

A benchmark study in Côte d’Ivoire showcases a company that provides decentralized solar systems for productive use such as solar pumps through last mile distribution of pay as you go products and is expected to generate an IRR of 13% in 3.8 years for a USD 2 million investment (39).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Market - High Level of Competition

Several companies are already offering off-grid solar-powered services. However, the market for solar-powered pumps and refrigeration is less competitive (34).

Capital - Limited Investor Interest

Private actors may face challenges in terms of access to finance, as the required amounts are too low to benefit from corporate loans, but equally too important for microfinance institutions. This can make it difficult to buy solar equipment (49).

Business - Supply Chain Constraints

Importing companies are exposed to fluctuations in the solar products market, and therefore exposed to global supply chain disruptions, as well as currency volatility.

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

13% of the population did not have access to clean water in 2023 while the percentage of households who did not have access to drinking water in less than 30 minutes amounted to 22% in 2021. This constitutes a threat to public health, affecting particularly the elderly (17, 46).

In 2020, 10.8% of the rural population experienced food insecurity. Simultaneously, at the national level, food waste accounts for a third of all waste produced, and 30 to 60 of agricultural production is lost, partly due to improper food storage and cooling (17, 47, 48).

Water access faces challenges especially in regions with limited electricity or high diesel costs (17).

Gender & Marginalisation

Women are disproportionately responsible for collecting water and managing household sanitation, a direct consequence of the lack of water pumps in rural areas (20).

In southern regions, saltwater intrusion into coastal aquifers could worsen due to sea level rise, resulting in negative consequences for water supply as well as food supply (fish, agriculture) (21).

Expected Development Outcome

Solar-powered water pumps and distribution systems enhance access to clean water, while solar-powered refrigeration improves food safety and security, both significantly improving public health.

Solar PV solutions for water pumping and cooling in Côte d'Ivoire can help stabilize food production and reduce crop loss by ensuring reliable irrigation and extending food shelf life through solar-powered refrigeration.

Solar-powered water pumps for irrigation provides reliable water access without relying on grid electricity or diesel. This reduces CO2 emissions, lowers operational costs, and increases crop yields, benefiting farmers, especially in remote areas, by enhancing food security and economic resilience.

Gender & Marginalisation

Water pumps can help isolated villages accessing clean water and improving sanitation. They can also alleviate the burden of water carrying for women.

Solar PV solutions for water pumping and cooling can mitigate the impacts of saltwater intrusion by providing coastal communities with alternative, clean water supplies for both drinking and irrigation. Additionally, solar-powered refrigeration can support fish and crop preservation, helping to stabilize food resources.

Primary SDGs addressed

Clean water and sanitation (SDG 6)
6 - Clean water and sanitation

6.1.1 Proportion of population using safely managed drinking water services

6.2.1 Proportion of population using (a) safely managed sanitation services and (b) a hand-washing facility with soap and water

Current Value

The proportion of population using safely managed drinking water services was 81% in 2023 (17).

In 2022, the proportion of population using safely managed sanitation services was 17% overall (24).

Target Value

N/A

The long-term objective for this indicator is 100% (27).

Affordable and Clean Energy (SDG 7)
7 - Affordable and Clean Energy

7.1.2 Proportion of population with primary reliance on clean fuels and technology

Current Value

The proportion of population with primary reliance on clean fuels and technology was 42.6% in 2022, and 7.4% in rural areas (53).

Target Value

The government aims to multiply by five the number of households using biogas or solar energy and liquefied natural gas for cooking purposes by 2030, from 6.3 million in 2016 to 33.1 million in 2030 (3).

Zero Hunger (SDG 2)
2 - Zero Hunger

2.1.1 Prevalence of undernourishment

2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)

Current Value

13.6% of children below 5 were undernourished in Côte d'Ivoire in 2021 (50).

In 2020, 10.8% of the rural population experienced food insecurity (17).

Target Value

The long-term objective for this indicator is 0% (51).

The objective for this indicator is to end food insecurity by 2030 (52).

Secondary SDGs addressed

Climate Action (SDG 13)
13 - Climate Action
Zero Hunger (SDG 2)
2 - Zero Hunger

Directly impacted stakeholders

People

Populations, particularly in rural areas, would benefit from better access to water and better-preserved food. Farmers, fishermen and traders could also benefit from these products.

Gender inequality and/or marginalization

The Bas-Sassandra, Montagnes, Sassandra-Marahoué and Zanzan districts account for more than 50% of the unelectrified population and could benefit from off-grid solutions (37).

Planet

Solar-powered pumps and adduction emit less CO2 compared to gas-powered pumps (34).

Corporates

Firms operating in the solar energy market would benefit from higher sales of solar products, in addition to business opportunities for the installation and maintenance of pumps and other equipment.

Public sector

The government benefits from improved public health, in line the "Water for all" project, leading to a decrease in public health expenditures (29).

Indirectly impacted stakeholders

People

The local population benefits from enhanced food safety and security and access to green technologies for water management and cooling.

Gender inequality and/or marginalization

Women and children are particularly exposed to sanitation risks and would benefit predominantly (36).

Planet

Improved food refrigeration would limit food waste and prolong food life cycle, ultimately benefitting the environment.

Outcome Risks

If Côte d'Ivoire does not have the adequate infrastructure to manage obsolete solar panels, it faces the challenges of soil pollution and unlawful dumping of toxic waste.

Solar-powered systems have lower energy expenses compared to diesel ones, which could lead to water overuse due to lower extraction costs (38).

If the price of photovoltaic solutions is too high, they could be acquired only by the most affluent farmers, exacerbating economic inequalities.

Impact Risks

If solar panels are not frequently maintained, the result is lower productivity and long-term deterioration of the panels, which can become toxic waste if not recycled.

If spare parts for the solar equipment are not readily available, the systems could fail or degrade in performance, reducing the long-term benefits.

If photovoltaic systems for water pumping or cooling are more expensive than diesel alternatives, there is a risk that, without public support, their market will remain limited.

Solar-powered systems are vulnerable to theft. If an insurance mechanism is not implemented, farmers may be reluctant to adopt this technology (38).

If the sale of solar equipment mainly concerns the highly fertile regions of the South, due to high transport costs or logistical difficulties, the impact on territorial inequalities would be limited.

Impact Classification

C—Contribute to Solutions

What

Providing off-grid solar PV systems for agricultural use would benefit populations, farmers and traders, improving public health and nutrition.

Who

Remote villages would benefit from improved water access and food refrigeration, particularly children and women, alleviating the burden of water pumping and transportation.

Risk

Without regular maintenance, spare parts, and insurance, solar systems face reduced performance, potential waste, limited adoption, and heightened inequality, particularly in marginalized regions.

Contribution

Refrigeration, water supply, and pump systems replace less efficient mechanical methods, as well as polluting processes (such as fuel oil). In the case of refrigeration, they can help expand its use in areas where it is not commonly practice

How Much

The Ivorian government targets universal access to electricity by 2025. In addition, it plans to equip 1,000 villages with solar-powered pumps by 2026, aiming to ensure access to sufficient and quality drinking water for over 4,000,000 people (17, 59).

Impact Thesis

Expand electricity access and contribute to improved health through better sanitation and food refrigeration.

Enabling Environment

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Policy Environment

The National Renewable Energy Action Plan 2014–2030 (Plan d’action national des énergies renouvelables 2014-2030 or PANER) outlines key objectives to improve access to clean energy, notably through the distribution of solar photovoltaic kits and the installation of mini solar plants, and the development of pumping and irrigation using renewable energies (3).

The National Energy Efficiency Action Plan (Plan d’Action National d’Efficacité Énergétique or PANEE) targets improvements in energy efficiency across various sectors from 2016 to 2030. This plan aims to reduce energy losses and promote the use of solar-powered solutions by households, such as solar cookers and cooling devices to replace more polluting alternatives (charcoal, wood) (33).

The Rural Electrification Plan (Plan Directeur d'Electrification Rurale or PDER) prioritizes grid extension over off-grid strategies (targeting 2% of the population relying on standalone systems by 2030), but only concerns villages of over 500 inhabitants (30).

Financial Environment

Fiscal incentives: The Investment Code provides fiscal incentives for investments in renewable energies, including exemption from various commercial and profit taxes. It also offers an exemption from patents and licenses contribution and an 80% to 90% reduction of employers' contribution (33).

Fiscal incentives: The new Investment Code sets a discounted VAT rate of 9% on solar equipment (33).

Other incentives: In 2021, the World Bank approved a USD 22.5 million funding for the Regional Off-Grid Electricity Access Project (ROGEAP). It aims to expand the market for off-grid solar systems in West Africa, supporting regional market development and the entrepreneurial ecosystem to improve solar access in underserved areas (45).

Regulatory Environment

Decree No. 2016-787 of October 12, 2016 outlines the regulations applicable to the production, distribution, and commercialization of electricity produced by mini-networks or autonomous individual systems (35).

Order No. 105 of 13 December 2019 exempts self-production of energy from authorization and declaration if the power is below 500 W. For systems between 0.5 kW and 20 kW, self-production is permitted, but a prior declaration is required. Installations exceeding 20 kW require formal prior authorization (40).

Order No. 104 of 13 December 2019 outlines the penalties applicable to concessionnaires engaged in generation, distribution, and retailing of electricity through mini-grids and/or standalone systems violating performance indicators (37).

The Power Africa Off-grid Project (PAOP), funded by USAID, provides technical assistance and grant funding to expand off-grid solar energy solutions across sub-Saharan Africa. Focusing on policy support, market intelligence, business performance, and financing, PAOP aims to increase energy access through private sector involvement, particularly for solar home systems (SHS) and mini-grids​ (55).

Marketplace Participants

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Private Sector

AD Solar, Aphelion Energy, PEG Africa, Phaesun, EDF Energy, Orange Energy, Scheider Electric, Apinome, Yandalux, Alternative Energy, Betrad, SI2E, ENR, Ohel International, Optima, Lifi-LED, Baobab+, Confédération Générale des Entreprises de Côte d’Ivoire (CGECI).

Government

Ministère de l'hydraulique, Office national de l’eau potable, Ministère du Pétrole, de l'Énergie et des Énergies Renouvelables (MPEER), Autorité Nationale de Régulation du Secteur de l'Électricité (ANARE-CI), CI-Energies, Société de Distribution d'Eau de Côte d'Ivoire, Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI).

Multilaterals

European Investment Bank, International Finance Corporation (IFC), African Development Bank (AfDB), World Bank, European Union (EU).

Non-Profit

Water and Sanitation for All, U.S. Agency for International Development (USAID), Fondation Energies pour le Monde (Fondem), Practical Action, WaterAid, Netherlands Development Organisation.

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
rural

Côte d'Ivoire: Savanes

The Tchologo region, located within the Savanes district, is the region at greatest risk of food insecurity, being also the country's fifth poorest (56).
rural

Côte d'Ivoire: Zanzan

Zanzan is the district where concerns about access to water are most pronounced in Côte d'Ivoire, and it is also marked by high levels of food insecurity (56, 57).
rural

Côte d'Ivoire: Vallée du Bandama

Vallée du Bandama exhibits high levels of energy poverty, reaching 69.03% in the Hambol region (6).
rural

Côte d'Ivoire: Montagnes

Energy poverty is particularly high in the Montagnes district, reaching 64.41% in the Cavally region and 63.7% in the Tonpki region. The district is also the one with the highest concentration of rural farming households (6, 58).

References

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