Mexico has an installed solar power capacity of approximately 6,000 MW.⁷

Mexico aims to increase its solar capacity to about 15,000 MW by 2030 as part of its renewable energy goals.⁸

⁹¹⁰

Solar: The average levelized cost of electricity (LCOE) for utility-scale solar photovoltaic (PV) projects is approximately USD $0.049 per kWh.

Natural Gas: The average cost of electricity generated from natural gas in Mexico ranges from USD $0.05 to $0.07 per kWh.

Coal: The average cost of electricity generated from coal in Mexico is approximately USD $0.06 to $0.08 per kWh.

Hydropower: The average levelized cost of electricity (LCOE) for hydroelectric generation in Mexico is approximately USD $0.06 per kWh.

Nuclear: The average LCOE for nuclear power generation in Mexico is estimated to be around USD $0.08 to $0.12 per kWh.

¹¹

Natural Gas: 55%
Hydro: 12%
Coal: 8%
Wind: 7%
Solar: 6%
Nuclear: 3%
Geothermal: 2%
Other: 7%

Urban Areas: Electricity is available almost 24 hours per day.⁵

Rural Areas: Availability is slightly lower but improving, with electricity typically available for about 20-22 hours per day.⁹

As of December 2023, had a total of 410,810 residential solar installations.⁸

¹²¹³¹⁴

Installed Solar Farms: As of 2023, there are 69 operational solar farms in Mexico.

Projected Solar Farms: An additional 34 solar farms are planned or under construction, bringing the total to around 103 solar farms by the coming years.

Current Demand: As of 2023, the off-grid solar market in Mexico solar energy market is estimated to have an installed capacity of approximately 200 MW. This demand is primarily driven by rural and remote areas lacking access to the national grid.¹⁵

Projected Demand: The off-grid solar market in Mexico is expected to grow significantly, reaching around 500 MW by 2030.¹⁶

Current Demand: As of 2023, the installed capacity for on-grid solar PV in Mexico is approximately 9,338.7 MW.¹⁷

Projected Demand: The on-grid solar PV market in Mexico is projected to continue its growth, with an expected compound annual growth rate (CAGR) of over 10% from 2022 to 2035.¹⁸

¹⁹²⁰²¹

Solar Installers: $430-$540 per month.

Electrical Engineers: $1080-$1620 per month.

Project Managers: $1350-$1890 per month.

General Labors: $380-$430 per month

As of 2024, the population of Mexico is approximately 129,336,718 people.²²

The overhead costs for solar panel production in Mexico typically range from 20% to 25% of the total production cost.¹¹²³²⁴

Labor costs for operating machinery, assembling panels, and quality checks are significant. The labor cost ranges from $15 to $30 per hour, depending on the specific tasks and location of the factory.

Facility Maintenance costs related to maintaining the manufacturing facilities, including rent, equipment maintenance, and repairs, typically range from $3,000 to $10,000 per month.

Utilities Energy consumption for running production lines is a major component, with costs ranging from $0.10 to $0.50 per kilowatt-hour, depending on the location.

Administrative Expenses costs associated with the management of the production process, including salaries of administrative staff, office supplies, and other general expenses, typically add up to a substantial part of the overhead.

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

Mexico’s energy infrastructure is a comprehensive system that includes generation, transmission, and distribution of electricity. Key data points about the infrastructure are as follows:⁵²⁵

Total Installed Capacity:

• As of 2022, the total installed capacity in Mexico reached 92,503 MW, which includes power generation plants from both the Federal Electricity Commission (CFE) and private companies.

Electricity Generation:

• In 2022, the National Power System generated 340,713 GWh of electricity. Of this, 31.2% came from clean energy sources (renewable and non-renewable), while 68.8% was from fossil fuels.

Electricity Consumption:

• The total electricity consumption in 2022 was 333,662 GWh, with an expected annual growth rate of 2.5% from 2023 to 2037.

Grid Infrastructure:

• Mexico’s National Power System (SEN) comprises nine interconnected regions plus a binational electricity system in Baja California. The interconnected regions form the National Interconnected System (SIN).

Clean Energy Transition:

• Mexico aims to increase its clean energy production, with strategic investments and policies aimed at modernizing the grid and integrating renewable energy sources.

Investment in Renewable Energy:

• Mexico is making significant investments in renewable energy infrastructure, including a massive $11 billion investment to enhance its solar energy capacity.

²⁶²⁷²⁸

General Law on Climate Change:

• This law sets out the framework for the reduction of greenhouse gas emissions and promotes the use of renewable energy sources, including solar power.

Energy Transition Law:

• This law mandates that 35% of Mexico’s electricity should come from clean energy sources by 2024. It sets the regulatory framework for the integration of renewable energy into the national grid.

National Electric System Development Program (PRODESEN):

• PRODESEN outlines Mexico’s strategic planning for the expansion and modernization of its electric infrastructure, with significant emphasis on increasing the capacity of renewable energy sources.

Regulations for Distributed Generation:

• The government has set regulations to support distributed generation (DG) systems. These regulations aim to simplify the installation and operation of small-scale solar energy systems, promoting decentralized energy production

^8272930

Solar Bond Program:

• The Mexican Climate Initiative (ICM) has developed a Solar Bond program to redirect part of the expenditure on electricity subsidies towards the acquisition and installation of photovoltaic modules. The program aims to make solar installations affordable for low and middle-income households. In 2022, the program allocated approximately USD 500 million for these efforts.

Renewable Energy Certificates (CELs):

• Renewable Energy Certificates (Certificados de Energías Limpias, CELs) are issued to energy producers that generate electricity from renewable sources. Each certificate represents 1 MWh of clean energy produced. The Mexican government has mandated that a certain percentage of electricity sold by suppliers must come from renewable sources, increasing the demand for CELs. In 2023, the price of CELs was approximately USD 25 per certificate.

Incentives for Distributed Generation:

• Mexico provides various incentives for distributed generation (DG) systems, which include small-scale solar installations. These incentives include simplified permitting processes and favorable net metering policies, which allow consumers to sell excess power back to the grid at competitive rates. In 2023, the government estimated that around 1,000 MW of distributed generation capacity was installed, with an investment of approximately USD 1 billion.

Subsidies for Residential Solar Installations:

• The Mexican government offers subsidies to reduce the cost of residential solar installations. These subsidies can cover up to 30% of the installation cost, making it more affordable for households. In 2023, the total subsidies allocated for residential solar installations amounted to approximately USD 200 million.

Tax Incentives for Solar Projects:

• The Mexican government provides tax incentives for investments in solar energy projects. These include accelerated depreciation rates for solar equipment and exemptions from import duties for solar panels and related components. The accelerated depreciation allows companies to write off the cost of solar equipment faster, reducing their tax burden. In 2023, the estimated tax savings from these incentives were around USD 150 million.

Net Metering and Net Billing:

• Mexico has implemented net metering and net billing schemes to encourage residential and commercial solar installations. These regulations allow consumers to generate their own electricity and feed excess energy back into the grid.

^{1727 31}

Installed Projects

Villanueva Solar Park:

• Location: Coahuila
• Capacity: 828 MW
• Details: One of the largest solar parks in Mexico, operational since 2018.
• Investment: USD 650 million

La Pimienta Solar PV Park:

• Location: Campeche
• Capacity: 444 MW
• Details: Operational since 2020, this park significantly boosts the region’s renewable energy production.

Sonora Solar Hub:

• Location: Sonora
• Capacity: 1.25 GW (various projects combined)
• Details: Various projects by international firms like Acciona, Iberdrola, and local companies such as Sempra Infrastructure.

Salitrillos Solar Park:

• Location: Tamaulipas
• Capacity: 103 MW
• Details: Operated by Enel Green Power, this park has been operational since 2019.

Projected Projects

Puerto Peñasco Solar Park:

• Location: Sonora
• Capacity: 1 GW
• Details: Expected to be the largest photovoltaic project in Latin America. Phase 1 (279,000 solar panels) began in May 2022 and is expected to be completed by 2027.
• Investment: USD 1.7 billion.

¹²³⁰³²

Enel Green Power:

• Active in Mexico since 2008, focusing on building and operating renewable energy plants, including notable projects like Villanueva Solar Park and Don José Solar Park.

Engie Mexico:

• Involved in the generation, transmission, and distribution of electricity and natural gas, contributing to Mexico’s clean energy goals through investments in solar energy projects.

Canadian Solar:

• Develops, manufactures, and sells solar modules, providing solutions for commercial and residential purposes. Significant projects include the El Mayo Solar PV Park in Sonora.

Trina Solar:

• Manufactures high-quality solar panels and provides solar energy solutions. Leading EPC provider in Mexico, contributing to various solar projects across the country.

Jinko Solar:

• Global leader in solar technology, supplying solar panels and providing complete solar solutions, instrumental in the development and execution of several large-scale solar projects.