Market Overview

The Latin America solar energy market size reached USD 6.6 Billion in 2024 and is projected to grow to USD 19.1 Billion by 2033. It is expected to expand at a CAGR of 11.2% during the forecast period 2025-2033. Growth is driven by abundant solar resources, declining costs of solar technology, supportive government incentives, rising energy demand, and increased energy security concerns.

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

Latin America Solar Energy Market Key Takeaways

• Current Market Size: USD 6.6 Billion in 2024
• CAGR: 11.2%
• Forecast Period: 2025-2033
• Latin America is endowed with high solar irradiation, making it a prime region for solar power generation.
• Solar technology costs dropped significantly, with a reported 8% renewable energy cost reduction in 2024.
• Government incentives such as tax exemptions and financing have boosted solar energy projects across Brazil, Mexico, Chile, and Puerto Rico.
• Deployment predominantly includes rooftop and ground-mounted solar energy systems.
• Applications cover residential, commercial and industrial, and utility-scale sectors.

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Market Growth Factors

Abundant Solar Resources:

Latin America has a large potential for solar energy since irradiation levels are high in some countries in this region. In September 2024, the Spanish company Zelestra finished building a US$200 million solar park in Colombia with a planned capacity of 144 MW. This solar finance further strengthens the business case for solar. It also has the potential to enable the technology to address energy access challenges in remote or off-grid settings, as well as to strengthen the potential for regional scalability of sustainable energy solutions, to meet growing energy needs.

Declining Costs of Solar Technology:

This rapid growth is also spurred by reductions in solar technology costs. IRENA reported that Latin America's renewable energy costs fell by 8% in 2024, driven by capital cost reductions and optimal supply chain operation. Single-axis solar PV arrays increasingly deliver the lowest LCOE in the world (for example in Brazil, Chile and Mexico), shortening payback periods for investors and drawing in foreign solar investors to cash-strapped countries throughout Latin America.

Government Incentives:

Government support also increases the solar power market: Brazil is supporting solar with tax exemptions and loans from national development banks. In addition, PPAs and clean energy certificates have expanded renewable energy targets in Mexico. Chile's support for rural solar is through streamlined laws and financial incentives. In October 2024, the US Department of Energy announced an $861 million loan guarantee for two solar photovoltaic farms in Puerto Rico. They would generate up to 200 MW. This support may help finance with ease and reduce regulatory risk in order to invest stably in solar.

Market Segmentation

Deployment Insights:

• Rooftop: Solar installations mounted on residential or commercial building roofs, offering localized and accessible clean energy.
• Ground-mounted: Solar panels installed on open land for larger scale energy generation, suitable for utility-scale projects.

Application Insights:

• Residential: Solar energy systems designed for household electricity needs.
• Commercial and Industrial: Solar applications serving businesses and manufacturing facilities to offset energy costs.
• Utility-scale: Large-scale solar farms supplying solar power to the grid for mass consumption.

Regional Insights:

• Brazil
• Mexico
• Argentina
• Colombia
• Chile
• Peru
• Others

Regional Insights

Brazil, Mexico, Argentina, Colombia, Chile, and Peru represent the major markets within Latin America. The report does not provide explicit market share or CAGR values by region but indicates these key countries contribute significantly to the market's growth through policies and project developments.

Recent Developments & News

In September 2024, Huasun showcased its zero busbars (0BB) products and perovskite-HJT tandem cells at Intersolar South America 2024 in Sao Paulo, Brazil. In December 2023, MYTILINEOS Energy & Metals inaugurated the Willka Solar Park in Latin America, a US$110 million project contributing 109.2 MWp in DC of renewable energy, powering over 105,000 homes annually.

Key Players

• Zelestra
• Huasun
• MYTILINEOS Energy & Metals

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