Poverty is a global crisis with consequences that undermine every aspect of human life. There are many symptoms of poverty, spanning from poor health to low literacy rates, ultimately leading to disempowerment—where opportunities for people to reach their full potential are hampered.  

In this way, poverty is a vicious cycle. Breaking that cycle requires more than just hard work by the individual. It requires tools and resources. Energy is one of those crucial resources. Without access to electricity, it’s incredibly difficult to expand one’s knowledge, gain skills, and compete in the economy.   

Nearly one billion people lack basic electricity today, the vast majority living beyond the grid. For these communities, solar power offers a lifeline for breaking the cycle of poverty for good, and making Sustainable Development Goal 1—”no poverty”—a reality. 

Overview of Goal 1 

Sustainable Development Goal 1 strives to “end poverty in all its forms everywhere,” with a primary focus on eradicating extreme poverty, which is defined by the World Bank as “living on less than $1.90 per person per day.”  

Currently, 1 in 10 people around the world experience extreme poverty, 80% of whom reside in Sub-Saharan Africa. Two-thirds of the world’s poorest people are women and children. Without urgent action, it is estimated that 6% of the global population will live in poverty by 2030. 

About Energy Poverty:  

The World Economic Forum defines energy poverty as “the lack of access to sustainable modern energy services and products.” Nearly 1 billion people lack basic access to electricity, unable to receive services such as lighting, refrigeration, and internet.  

Energy poverty and extreme poverty are deeply linked. Without energy, children can’t study at night, doctors can’t operate medical equipment, and farmers can’t irrigate crops at scale. These effects and more mean that the world’s poorest communities are likely to remain poor if they don’t gain access to electricity. 

Energy poverty is a multidimensional problem; its effects are felt physically, economically, and socially. For instance, a lack of energy access means a family must rely on polluting energy sources, such as kerosene for lighting. However, kerosene is expensive, forcing that same family to spend money that could have gone to food or education. Kerosene also carries health risks, as these lamps are prone to explode and burn their users.  

Energy poverty may be a reality for hundreds of millions of people today, but a sustainable solution is being harnessed to change its future for good.  

Understanding the Poverty–Energy Trap

Poverty and energy access reinforce one another. When families lack electricity, they lose valuable time and economic opportunity. Children spend hours collecting firewood instead of learning. Farmers rely on manual labor instead of irrigation systems. Health expenses rise due to dangerous fuel sources like kerosene. As income decreases, so does the ability to invest in cleaner, more efficient technologies. This creates a poverty–energy trap where progress is nearly impossible without sustainable, reliable energy access. Solar breaks this cycle by offering a clean, affordable path forward.

Solar Energy and Poverty 

Africa is home to 60 percent of the world’s solar resources, which can be harnessed as a sustainable, affordable, and accessible energy source by millions of people. The use of solar energy can eliminate extreme poverty and help achieve Goal 1 by:  

• Providing access to electricity. Off-grid systems can be installed in rural communities, where energy access is often most limited. With increased access to electricity, families can benefit from an improved quality of life, with opportunities in education, healthcare, and economic development.  

• Reducing energy costs. Many families spend a large portion of their income purchasing fuels, such as kerosene. The average cost of power generated by solar PV projects in Africa has declined by 61 percent since 2012, and a similar shift can be observed globally. As technology advances, solar power is now considered a cheaper option than fossil fuels.  

• Creating jobs and growing economies. The renewable energy transition creates three times the number of jobs compared to fossil-based sources, across sectors including installation, maintenance, repair, and planning. Beyond the energy industry itself, access to electricity improves education and economies opportunities for students across disciplines.  

• Empowering women and girls. The burden of collecting firewood, water, and other resources falls heavily on the shoulders of women and girls, who are too often trapped in a vicious cycle of time poverty—unable to pursue activities such as education or employment with limited hours in the day. Technologies such as solar cookers and solar-water pumps are a sustainable alternative that give this time back.   

How Solar Energy Supports Health and Well-Being

Healthcare systems cannot function without electricity. Clinics need power for lighting, refrigeration for vaccines, sterilization of tools, and operation of medical devices. In off-grid regions, medical professionals are forced to rely on daylight and diesel generators—both unsafe and unreliable. Solar-powered clinics ensure extended service hours, safer childbirth, preserved vaccines, and better patient outcomes. Healthy communities are more productive, more resilient, and better positioned to escape poverty permanently.

Solar for Agriculture: Boosting Food Security and Income

Agriculture is the backbone of many low-income economies, yet farmers often lack access to modern tools. Solar-powered water pumps, cold-storage units, and processing machines help farmers irrigate fields, reduce food spoilage, and increase productivity. With solar, smallholder farmers can grow more crops year-round, enter new markets, and stabilize their income. Increased agricultural productivity does not just reduce hunger—it lifts entire communities out of poverty.

Solar Mini-Grids for Rural Electrification:  

Some of the most energy-poor populations live in rural communities, which either receive unreliable electricity or lack a connection to the grid altogether. For those communities, solar mini-grids are an effective solution to providing energy access and reducing poverty.  

Mini-grids are localized, off-grid energy systems that can power entire communities without being connected to a country’s main electric grid. For 60 percent of the African population, mini-grids are the best solution for sustainable and affordable energy access by 2030.  

 
The cost of electricity produced by solar mini-grids are estimated to decline to $0.20/kWh by 2030, a major contrast to the cost of electricity from the main grid, which can be as high as $0.50/kWh today.  

Solar mini-grids have the ability to place life-changing energy into the hands of millions of families, powering homes, businesses, schools, and hospitals. For example, in Monpura Island in Bangladesh, two solar mini-grids were installed, powering 1,199 households, 684 shops, and 41 institutions. Without mini-grids, the people of Monpura may never have experienced this level of energy access. With them, they can utilize expanded resources and pursue new opportunities. This is one of many examples of mini-grids in action around the globe. 

Looking forward: Solar Energy and Poverty 

Solar energy holds great potential for poverty eradication. However, greater financial investment from the public and private sectors is needed if Goal 1 is to be met by 2030. It is estimated that there will be a $15 billion gap in annual funding for clean energy projects. 

The good news: promising solutions exist. A collective, global push is needed to bring solar energy to people experiencing poverty. Improving energy access, combined with other interventions, can uplift hundreds of millions of people and create a future where every person has the