Latin America Solar Panel Market Growth Fueled by 7.32% CAGR Through 2033

Market Overview

The Latin America solar panel market was valued at USD 10.2 Billion in 2024 and is projected to grow to USD 20.3 Billion by 2033. The market is expected to expand at a CAGR of 7.32% during the forecast period of 2025-2033. Key factors driving growth include rising energy demand, government incentives, advancements in solar technology, increasing electricity costs, and heightened awareness of climate change.

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Study Assumption Years

Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033

Latin America Solar Panel Market Key Takeaways

Current Market Size: USD 10.2 Billion (2024)
CAGR: 7.32%
Forecast Period: 2025-2033
Governments across Latin America are increasingly implementing policies and incentives such as tax breaks, subsidies, and feed-in tariffs to promote solar energy adoption.
Technological advancements including energy storage solutions and improved photovoltaic efficiencies enhance market accessibility and cost-effectiveness.
Integration of smart grid technologies is improving energy management and consumption.
Notable projects include Colombia's hybrid power generation facility combining PV panels with battery and diesel backup systems.
AES Andes SA launched the Andes Solar IV power complex in Chile, featuring 211 MW photovoltaic panels and a 130 MW battery energy storage system.
Brazilian government changes to import levies aim to encourage local manufacturing of renewable energy equipment.

Market Growth Factors

Governments across Latin America have developed a number of incentives and programs, such as tax exemptions, subsidies, and feed-in tariffs, to develop a market for residential and commercial solar panels in Latin America. These incentives have been one of the leading factors in the growth of the solar market. For example, in May 2024, Colombia inaugurated a hybrid photovoltaic, battery and diesel back-up electricity generation plant in Casuarito, providing electricity to 239 households. In December 2023, the government of Brazil approved investments to increase import tariffs for components of wind turbines and solar modules, and eliminate tax incentives on imports of built solar panels.

Technological progress is also driving growth in Latin America's solar panel market, as energy storage technologies and increases in photovoltaic efficiency create the conditions for the proliferation of more efficient and cheaper panels. Smart grids improve energy management and usage to lower energy costs and carbon footprints for consumers and businesses. One of the world's largest is the Andes Solar IV power complex, built by AES Andes SA in Chile, started in October 2024 with a 211 megawatt photovoltaic array and a 130 megawatt lithium battery storage system, the largest system currently in operation in Chile.

Other factors that come into play include rising electricity costs, increasing knowledge of climate change effects, the view that solar power is a naturally sustainable and relatively cheap alternative to non-renewable energy and continuous (government-led) innovations, technology developments, utility-scale solar projects, among others. Several factors favor a transition to renewable energy sources and the development of solar panels in Latin America throughout the forecast period.

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Market Segmentation

Type Insights:

Crystal Silicon: Includes high-purity silicon-based solar panels commonly used for efficient solar energy conversion.
Monocrystalline Silicon: Solar panels made from single crystalline silicon which offer higher efficiency and durability.
Polycrystalline Silicon: Panels composed of multiple silicon crystals typically offering a cost-effective solar solution.
Thin Film: A solar panel type with a thin layer of photovoltaic material, offering flexibility and diverse applications.
Others: Includes other types of solar panels beyond the main categories listed.

End Use Insights:

Commercial: Solar panels used for business and institutional applications, driving energy cost savings.
Residential: Solar panel installations intended for household energy needs, promoting sustainable living.
Industrial: Solar solutions tailored for industrial operations to reduce energy expenses and emissions.

Country Insights:

Brazil: A major market with extensive solar energy adoption.
Mexico: Significant growth driven by solar energy policies.
Argentina: Emerging solar market with increasing installations.
Colombia: Notable projects and government incentives boosting the solar panel market.
Chile: Home to large solar projects like Andes Solar IV.
Peru: Growing market with renewable energy potential.
Others: Includes other Latin American countries involved in solar panel market activities.

Regional Insights

Brazil is a dominant regional market in Latin America for solar panels, driven by extensive government support and local manufacturing encouragement via import levy adjustments. The region benefits from a CAGR of 7.32% during 2025-2033 and a growing market size projected to reach USD 20.3 Billion by 2033, indicating a robust expansion aligned with regional energy needs and policy incentives.
Recent Developments & News
In August 2024, Solar Americas Capital and Ambev launched a large-scale behind-the-meter solar power plant in Cachoeiras do Macacu, Rio de Janeiro, Brazil, with a peak generation capacity of 5 MW from 9,000 solar panels. In September 2024, Enel Colombia completed the installation of 820,600 solar panels at its Guayepo I & II solar farm project in Atlantico, Colombia, with a capacity of 486.7 MWdc, marking a significant milestone in Latin America's solar energy infrastructure.

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Key Players

Solar Americas Capital
Ambev
Enel Colombia
AES Andes SA

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