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The Mexican solar photovoltaic (PV) market is expected to record a CAGR of approximately 8.90% during the forecast period, 2022–2027. With the COVID-19 pandemic in 2020, the market experienced no severe impact as it witnessed growth in the same year with the addition of nearly 1.2 GW of solar photovoltaic (PV) installed capacity. Further, no delay of solar PV work was recorded in 2020. Factors such as the extension of a simple permit procedure for solar PV projects between 500 kW to 2 MW in size under net metering and the government initiatives to increase and promote the solar PV market in the country have been attributed to driving the demand for solar PV in Mexico. In addition, the declining costs of solar technologies are becoming competitive with fossil fuel sources, and additional subsidies on solar systems are driving the solar PV market further. On the other hand, in the absence of any new initiatives, limited land, factors such as cancellation of the fourth auction round by the new government, and an underdeveloped power grid of Mexico are expected to hinder the growth of the solar PV market in the coming years.
- Utility-scale is expected to account for the largest share in the Mexican solar PV market by deployment due to higher investments and larger installed capacity.
- In Mexico, the solar financing wave is being fueled largely by Mexico’s renewable energy goals, which are for 35% by 2024 and 50% by 2050. Such ambitious goals are likely to open up a new stream of investments in the Mexican solar market during the forecast period.
- Demand for decentralized solar energy systems is expected to support the market's growth.
Scope of the Report
The Mexican solar photovoltaic (PV) market report includes:
|Distributed Solar Generation (Residential, Commercial, and Industrial)|
Key Market Trends
Increasing Deployment of Utility-scale Projects
- Solar energy has established itself as one of the renewable energies with the largest presence in Mexico. This can be demonstrated by the presence of 69 utility-scale solar parks with an aggregate installed capacity of 4.8 GW as of July 2020.
- The utility-scale project, along with commercial and residential projects, helped the country to have an installed capacity of around 5.6 GW in 2020.
- Further, the country is expected to have significant growth in the utility sector on account of government initiatives, such as the 2021–2035 Development Program of the National Electrical System. The country is likely to increase power generation from clean renewable sources to reduce air pollution as per the program.
- Hence, in alignment, the government aims to target 35% of the country's electricity produced from renewable energies by 2024. Hence, such a scenario would boost the utility segment during the study period.
- Several projects like Sonora solar project in Puerto Penasco, amounting to nearly USD 100 million, are expected to get commission by late 2023 or early 2024. Further, Energia Aljaval's 300 MW project in Chihuahua state was commissioned in late 2021. Hence, with upcoming projects and government support, the segment is expected to grow significantly during the forecast period.
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Increasing Demand for Decentralized Solar Energy Systems is Expected to Drive the Market
- Decentralized solar systems, also called distributed solar energy systems, are small-scale, self-supply solar energy systems that are less than 0.5 MW in capacity and connected to a distribution circuit with a high concentration of load centers. These solar generators do not need a CRE permit for installation.
- These small-scale solar systems were initially established in rural areas that are not connected to the national grid. However, residential and commercial buildings in the urban areas gradually also began installing solar PV panels.
- Though distributed solar generation is still in a nascent stage in Mexico, it witnessed rapid growth in the last few years. One of the major factors driving the growth of distributed solar generation is the reduction in the cost of solar PV systems. As of February 2022, average solar energy systems in Mexico cost USD 3.07 per watt, which is expected to reduce further with technological development and the inflow of solar panels from various countries.
- As of 2020, more than 100,000 roofs on commercial buildings, industrial buildings, and homes had distributed solar PV installations. This number is projected to increase to around 650,000 by 2023.
- Hence, owing to the aforementioned factors, the decentralized solar energy systems in the country are likely to grow, which, in turn, is likely to act as a key driver to the market studied during the forecast period.
The Mexican solar photovoltaic (PV) market is moderately fragmented. The key players in this market include Enel SpA, Engie SA, Canadian Solar Inc., Risen Energy Co. Ltd, and Hanwha Q Cells Co. Ltd.
- February 7, 2022, MPC Energy Solutions (MPCES) completed the acquisition of the Los Santos Solar I project, located in the state of Chihuahua, Mexico. The plant has been operational since 2017 and has an installed capacity of 15.8 MW.
- On February 4, 2022, Mexico City’s solar initiative Ciudad Solar installed two photovoltaic (PV) arrays at the Secretariat of Economic Development (Sedeco) building. The Ciudad Solar is expected to install rooftop PV and other clean energy that will add up to 350 MW of green capacity during 2019-2024.
Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Renewable Energy Mix in Mexico, 2020
4.3 Mexico Solar PV Installed Capacity Forecast in MW, till 2027
4.4 Mexico Solar Irradiation and Resource Potential
4.5 Status of Solar Auctions in Mexico
4.6 Recent Trends and Developments
4.7 Government Policies and Regulations
4.8 Market Dynamics
4.9 Supply Chain Analysis
4.10 PESTLE Analysis
5. MARKET SEGMENTATION
5.1.2 Distributed Solar Generation (Residential, Commercial, and Industrial)
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Domestic Players
22.214.171.124 Enlight Mexico
126.96.36.199 CPM Solar
6.3.2 International Players
188.8.131.52 Enel SpA
184.108.40.206 Engie SA
220.127.116.11 Risen Energy Co. Ltd
18.104.22.168 Canadian Solar Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Mexico Solar Photovoltaic (PV) Market market is studied from 2019 - 2027.
What is the growth rate of Mexico Solar Photovoltaic (PV) Market?
The Mexico Solar Photovoltaic (PV) Market is growing at a CAGR of >8.9% over the next 5 years.
Who are the key players in Mexico Solar Photovoltaic (PV) Market?
Enel SpA, Engie SA, Canadian Solar Inc., Risen Energy Co. Ltd, Enlight Mexico are the major companies operating in Mexico Solar Photovoltaic (PV) Market.