This report highlights the substantial growth of off-grid solar (OGS) lighting in Papua New Guinea (PNG). Since 2012, OGS product sales have surged by an average annual rate of 68%, raising market penetration from 2% to 60% of households. This success is largely due to PNG’s low grid electrification rate, with only 13% of the population connected to the grid, as well as the introduction of the Lighting Papua New Guinea program in 2014, which increased awareness and market share for quality-verified products. Off-grid energy is expected to remain a cornerstone of the country’s energy supply strategy.
The report provides a comprehensive analysis of both demand and supply dynamics in the OGS market. On the demand side, we examined current lighting usage, consumer willingness to pay, purchasing criteria, and perceptions of quality-verified versus generic OGS products. Our supply-side analysis evaluates supply chains, distribution channels, procurement dynamics, and challenges. We conducted a survey of 703 households across PNG’s four regions, which revealed a diverse and growing market, with significant opportunities for companies willing to navigate the challenging environment. Quality-verified products now account for 17.5% of the market, and there is substantial room for growth, particularly through increased consumer awareness and the development of products tailored to PNG’s unique needs.
