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Solar PV-powered Room Air Conditioning: Market trends and techno-economic potential (Update 2025)

06/2025 , Publication - Technical Publication :

This study explores the economic and technical potential of solar-powered air conditioning systems to reduce greenhouse gas emissions from buildings in 17 countries. 

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Space cooling in buildings is characterized by enormous growth rates, due to increasing ambient temperatures, growing population and urbanisation. Air-conditioned buildings in many countries are largely dominated by mid to low appliance energy efficiency levels, highly climate-damaging refrigerants as well as fossil-fuel based electricity supply. This in sum generates a huge amount of greenhouse gas (GHG) emissions, furthering climate change.

The objective of this paper is to further unfold the technical and economic potential of solar PV-powered green air conditioners. Therefore it focuses on single split-type air conditioning systems with cooling capacities up to 5 kW, analyzing hybrid and off-grid solutions for private and small commercial applications in 17 countries. The analysis includes calculating the Levelized Cost of Electricity (LCOE) and Net Present Value (NPV). Additionally, the study reviews ice storage tanks as an alternative to batteries for solar PV air-conditioning systems, presenting case studies from Haiti and South Africa to illustrate practical applications and impacts on carbon emissions and grid load. The study aims to advance the solar-powered air conditioning market and support GIZ Proklima projects.