As of 2022, Guatemala’s installed solar photovoltaic (PV) capacity reached a total of 105 megawatts (MW), marking a significant milestone in the country’s transition to renewable energy. ⁶

Guatemala aims to add 65 MWp of solar capacity by 2025 with a new plant. ⁷

Solar: Globally, the average levelized cost of electricity (LCOE) for solar photovoltaic systems falls between $30 and $180 per megawatt-hour. However, country-specific data for Guatemala’s average solar electricity cost is not readily available at this time.

Hydropower: The average cost of hydroelectric power in Guatemala is approximately $0.296 per kWh, making it a relatively affordable source of electricity. ³

Coal: Guatemala’s coal-fired power plants have an average operating expenditure (OPEX) of around $0.03 per kilowatt-hour (kWh) ⁸

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As of 2021, Guatemala has achieved widespread electricity access, with approximately 99.4% of the population connected to the grid. However, despite the absence of load shedding, power outages can still occur, particularly in rural areas where distribution constraints are common, and hydroelectric systems may be affected by low water levels. ^{10 4 5}

„While exact figures on residential solar panel installations in Guatemala are unavailable, the country has been vigorously promoting solar energy growth through initiatives like Enerland’s 66 MWp Photovoltaic Plant, San Patricio Renovables‘ 65 MWp solar project, and BMR Energy’s Guatemala Green Solar Project, which has been providing clean energy to 4,500 households since 2014. ^{6 11 12}

From publicly available records, it seems like there are around 10 installed and projected solar farms in Guatemala. ¹³

IDB Invest is promoting off-grid solar energy access in rural areas of Guatemala and Colombia by investing in Kingo Energy, a company that provides clean energy solutions to approximately 45,000 households across both countries. ¹⁴

Guatemala’s off-grid market may lack comprehensive data, but it’s clear that solar adoption is on the rise. The demand for dependable electricity in off-grid areas is driving the expansion of solar home systems, which provide a viable and eco-friendly alternative to traditional grid infrastructure, particularly in remote or underserved regions.

Current Demand: By 2022, Guatemala had successfully installed 105 MW of photovoltaic (PV) capacity. ⁵

Projected Demand: Guatemala’s on-grid solar PV market is expected to sustain its upward trajectory, targeting an additional 65 MWp of solar capacity by 2025, followed by a further 235 MW of capacity to be brought online between 2026 and 2028. ⁶

Solar Panel Technician:

In Guatemala, solar panel technicians earn an average gross salary of $10,808.6/year ($5.16/hour) plus a $282.16 bonus. Salaries range from $8,275.38 (entry-level, 1-3 years) to $13,240.74 (senior-level, 8+ years), based on employer and employee surveys. ¹⁵

Solar Engineer:

In Guatemala, solar engineers average $28,956.10/year ($14.01/hour) with a $828.18 bonus. Salaries range from $20,971.39 (entry-level, 1-3 years) to $36,430.36 (senior-level, 8+ years), based on employer and employee surveys. ¹⁶

The current population of Guatemala is approximately 18,376,837 people. ¹⁷

The overhead costs for solar panel production in Ivory Coast typically range from 20% to 25% of the total production cost. ^{15 18 19 20}

The labor costs for solar PV system installation, assembly, and maintenance on roofs or structures, following site assessments and schematics, range from $8,275.38 for entry-level technicians to $13,240.74 for senior-level professional.

Utilities Basic (Water, Electricity, Garbage, Heating, Cooling) $67.15 at the same time, the Internet costs is $66.14 per month.

Factory rent cost in Guatemala can vary based on location, size, and specific requirements ranging from $220 per month to $12,386 per month.

Insurance Property Insurance expenditure is projected to reach $9.75 per capita in 2024, emphasizing the increasing importance of protecting assets against the risks posed by natural disasters.

Administrative expenses Overhead costs, comprising administrative expenses such as salaries for support staff, office materials, and general operational expenditures, often constitute a significant portion of the overall production expenses.

Quality control expenses incurred to ensure the solar panels meet performance and safety standards, including testing and inspections.

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Installed capacity

Guatemala’s installed electrical capacity totaled 4110 MW as of 2020, with the majority derived from hydro power (38.38%), followed by fossil fuels (30.36%), and biomass (25.20%). In contrast, other renewable energy sources accounted for a smaller share, including wind power (2.61%), solar energy (2.25%), and geothermal energy (1.20%).

Production

Guatemala’s electricity production rose from 11,121 GWh in 2020, driven by hydro power (52.30%), fossil fuels (24.88%), biomass (15.55%), wind (2.81%), geothermal (2.46%), and solar energy (1.99%), to 13,899 GWh in 2021, marking a significant increase in power generation.

Demand

By 2020, Guatemala had made significant strides in electrification, with 94.7% of the population having access to electricity, and boasting an installed capacity that was approximately double the national energy demand.

Consumption

In 2021, the average electricity consumption per person in Guatemala was approximately 0.714 megawatt-hours (MWh) per capita. ⁹

Largest electricity-consuming sector in Guatemala, 2021

Industry 38% of total final consumption of electricity

Residential 36% of total final consumption of electricity

Grid Infrastructure:

With a total of 54 power plants generating 2,420 MW of electricity, Guatemala’s power grid is connected by an extensive 2,139 km network of transmission lines. ²²

The General Law of Electricity (Ley General de Electricidad)

Guatemala’s General Law of Electricity governs the country’s electricity sector, covering generation, transmission, distribution, and marketing. The law mandates utilities to secure electricity supply contracts through competitive auctions, offering 15-year Power Purchase Agreements (PPAs) for capacity or energy. Notably, the law encourages the growth of distributed renewable energy, defined as renewable resource-based power generation, through specialized provisions. ²³

Incentives Law for the Development of Renewable Energy Projects (Ley De Incentivos Para El Desarrollo De Proyectos De Energia Renovable)

Under Accord 211 of 2005, Guatemala’s incentive law provides tax benefits for renewable energy technologies, including 10-year exemptions from import duties, VAT, income tax, and commercial tax. These incentives apply to the pre-investment and construction phases, which have a maximum duration of 10 years, aiming to stimulate investment in renewable energy projects. ²⁴

Technical Standard for the Connection, Operation, Control and Commercialization of the Renewable Distributed Generation – and Self-Producing Users with Excess of Energy – Net Metering

Guatemala’s Resolution CNEE 171-2008 establishes a net metering framework for auto-producers of renewable energy, regulating the integration of Distributed Renewable Generation into the grid. The resolution allows self-producers to generate and inject surplus energy into the distribution system, earning credits every three months. These credits can be used to offset energy consumption from the grid, but excess consumption is billed at standard rates. ²⁵

Regulatory agencies

The regulatory framework for Guatemala’s electricity industry consists of the General Electricity Act and the National Electric Energy Commission (CNEE), which ensure the sector’s proper functioning. Meanwhile, the Ministry of Energy and Mines (MEM) plays a crucial role in shaping the energy sector’s future, developing policies, and planning initiatives to drive growth and development. ²¹

Permitting agencies

Any project with potential environmental risks must undergo an environmental impact assessment by the Ministry of Environment and Natural Resources (MARN) to ensure ecological safety. Additionally, the project must obtain necessary permits from the local municipality where it will be located, further ensuring compliance with environmental and local regulations.

To foster investment in renewable energy sources, such as solar power, the Guatemalan government offers a range of financial incentives, including tax credits, aimed at encouraging businesses to transition to cleaner energy solutions:²⁶

Tax credit

Guatemala offers a trio of financial incentives for renewable energy investments: a 30% income tax credit, exemption from import taxes on renewable energy equipment, and a 10-year exemption from property taxes on the value of installed solar systems, making it an attractive destination for sustainable energy projects.

Net metering

Guatemala’s government has introduced net metering regulations, allowing businesses to feed excess energy from their solar systems into the grid and receive market-rate compensation. This, coupled with existing incentives, creates a favorable environment for businesses to invest in solar energy and capitalize on the benefits of renewable power.

San Patricio Renovables Project: ²⁷

• Status: ongoing
• Commissioning year: mid-2025
• Capacity: 65 MWp

Green Solar Project solar farm: ²⁸

• Status: Operating
• Commissioning year: 2014
• Capacity: 13.5 MW

Horus Energy PV Solar Plant: ²⁹

• Status: Operating
• Commissioning year: 2015
• Capacity: 58 MWp/dc and 35 MWp/dc

Zacapa solar farm: ³⁰

• Status: Operating
• Commissioning year: 2022
• Capacity: 9 MWp/dc

Joey Solar Coban:

Provides top-tier solar panel installation services in Coban, delivering exceptional solar products and expert solutions for those looking to invest in renewable energy and harness the power of the sun. ³¹

Global Pro Group, S.A:

Offers cutting-edge solar solutions in Guatemala City, prioritizing sustainability and environmental stewardship. By providing energy-efficient solutions that reduce ecological impact, they aim to improve quality of life, increase productivity, and generate savings for their clients, fueled by a passion for transformative technology. ³²

Calentadores Solares Guatemala:

With over 8 years of experience in Guatemala’s renewable energy sector, AISA (Alternativas Inteligentes SA) has established itself as a trusted provider of solar solutions, specializing in solar heaters, solar panels, and solar pumps. ³³

With a portfolio of over 3,450 projects nationwide, AISA boasts a team of expert solar energy technicians dedicated to delivering innovative solutions that yield long-term savings. Our mission is to empower customers to become self-sufficient energy producers through cutting-edge systems like insulated panel and grid-tied honeycomb technologies. Additionally, we offer comprehensive maintenance services for solar heaters and panels, ensuring optimal performance. In 2021, we pioneered the introduction of groundbreaking equipment in Guatemala, including solar refrigerators, freezers, and wind turbines, further solidifying our specialization in solar water heaters and commitment to renewable energy excellence.

MPC Energy Solutions (MPCES):

With a global presence, the company is a premier provider of sustainable energy solutions, concentrating on low-carbon energy infrastructure, including solar, wind, and hybrid energy assets, as well as energy efficiency solutions. They take a holistic approach, participating in the full lifecycle of renewable energy projects, from development and construction to ownership and operation, ensuring the successful delivery of sustainable energy initiatives. ³⁴

Guatemala Solar:

Offers a comprehensive range of solar energy solutions, from grid-tied photovoltaic systems to bespoke solar pumping systems for drinking water and irrigation, complemented by expert energy efficiency consulting. Their tailored approach ensures innovative solutions meet each customer’s unique needs, backed by full technical support and a commitment to excellence throughout every project stage, reinforcing their dedication to clean and efficient energy. ³⁵

Green Energy Solutions:

Specializes in harnessing the power of solar energy, delivering tailored solutions for optimal energy generation and consumption through innovative solar systems. We design, market, and install customized products that cater to the unique needs and requirements of our customers across various sectors, including industrial, commercial, and agricultural applications, ensuring a seamless transition to renewable energy. ³⁶