Latin America Solar Energy Market

Latin America Solar Energy Market Overview:

The Latin America solar energy market size reached USD 6.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 19.1 Billion by 2033, exhibiting a growth rate (CAGR) of 11.2% during 2025-2033. The market is rapidly expanding due to the availability of large solar resources, the dropping costs of solar technology, the application of favorable government incentives, rising energy consumption, and increased energy security concerns.

Latin America Solar Energy Market Trends:

Abundant Solar Resources

Latin America is blessed with abundant solar resources, making it one of the most favorable regions in the world for solar energy generation. Several countries in the region experience high levels of solar irradiation, which allows for efficient and continuous solar power production. This natural advantage significantly boosts the region's potential to become a global leader in solar energy. For instance, In September 2024, Spanish company Zelestra inaugurated a $200 million solar park in Colombia, expected to produce 144 megawatts (MW) of electricity. Moreover, due to abundant sunlight solar installations generate higher power output which improves their economic feasibility compared to locations with reduced solar irradiance levels. Furthermore, the improvement of solar technology efficiency enables Latin American nations to convert natural solar resources into sustainable power solutions for their increasing energy needs. As a result, solar energy can be a reliable solution for rural or off-grid areas, offering consistent power supply in places where traditional energy infrastructure is weak or nonexistent, thus enhancing the Latin America solar energy market outlook.

Declining Costs of Solar Technology

The declining cost of solar technology is driving the Latin America solar energy market growth. Solar energy effectively became more accessible through substantial price declines in solar panel hardware and installation services and maintenance charges. In line with this, the International Renewable Energy Agency (IRENA) reports that solar photovoltaic costs have experienced substantial reduction because of technological progress and market scale growth together with rising competitive forces across the global solar market. For example, in 2024, Latin America's renewable energy costs dropped 8% due to lower capital costs and improved supply chains. Single-axis solar PV systems now offer the lowest LCOE, especially in Brazil, Chile, and Mexico. Besides this, in Latin America, where many countries face budgetary constraints, this reduction in costs has made solar energy a more attractive option for large-scale projects. Additionally, the lower capital expenditure required for solar projects enables a faster return on investment, which is particularly appealing to foreign investors and developers looking to expand in emerging markets.

Government Incentives

Government incentives play a pivotal role in fueling the expansion of Latin America solar energy market share. The growth of the solar market is also driven by the numerous countries that implement policies that encourage renewable energy (RE) investments. Brazil enables solar energy development by providing two support mechanisms including exemptions on solar equipment taxes together with financing from national development banks for renewable power projects. Through its energy reforms, Mexico reached RE targets by issuing power purchase agreements and clean energy certificates. Moreover, Chile established itself through its simplified solar project regulations and financial programs targeted at rural solar power systems. For instance, in October 2024, the U.S. Department of Energy (DOE) announced an $861 million loan guarantee for constructing two solar photovoltaic farms in Puerto Rico, aiming to generate up to 200 MW of solar power. These government-backed initiatives not only make solar projects more financially viable but also create a more stable investment climate by reducing regulatory risks.

Latin America Solar Energy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on deployment and application.

Deployment Insights:

• Rooftop
• Ground-mounted

The report has provided a detailed breakup and analysis of the market based on the deployment. This includes rooftop and ground-mounted.

Application Insights:

• Residential
• Commercial and Industrial
• Utility-scale

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes residential, commercial and industrial, and utility-scale.

Regional Insights:

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

The report has also provided a comprehensive analysis of all the major regional markets, which include Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latin America Solar Energy Market News:

• In September 2024, Huasun participated in Intersolar South America 2024 held in Sao Paulo, Brazil. The company showcased its zero busbars (0BB) products and perovskite-HJT tandem cells.
• In December 2023, MYTILINEOS Energy & Metals inaugurated its first-owned solar project in Latin America called Willka Solar Park. This project is built with an investment of US$110 million and will contribute 109,2 MWp in DC of clean and renewable energy to the country, which is equivalent to powering more than 105, 000 homes each year.

Latin America Solar Energy Market Report Coverage:

Key Questions Answered in This Report:

• How has the Latin America solar energy market performed so far and how will it perform in the coming years?
• What is the breakup of the Latin America solar energy market on the basis of deployment?
• What is the breakup of the Latin America solar energy market on the basis of application?
• What is the breakup of the Latin America solar energy market on the basis of region?
• What are the various stages in the value chain of the Latin America solar energy market? 
• What are the key driving factors and challenges in the Latin America solar energy?
• What is the structure of the Latin America solar energy market and who are the key players?
• What is the degree of competition in the Latin America solar energy market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Latin America solar energy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Latin America solar energy market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Latin America solar energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.