Forecast Shows Latin America Solar Energy Market Hitting USD 19.1 Billion by 2033

Market Overview

The Latin America solar energy market size was USD 6.6 Billion in 2024 and is projected to reach USD 19.1 Billion by 2033. It is expected to grow at a CAGR of 11.2% during the forecast period of 2025-2033. The market expansion is driven by abundant solar resources, decreasing solar technology costs, government incentives, rising energy consumption, and energy security concerns.

Download a sample copy of the report: https://www.imarcgroup.com/latin-america-solar-energy-market/requestsample

Study Assumption Years

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

Latin America Solar Energy Market Key Takeaways

Current Market Size: USD 6.6 Billion in 2024
CAGR: 11.2% during 2025-2033
Forecast Period: 2025-2033
The region benefits from abundant solar irradiation, enabling efficient and continuous solar power production.
The declining costs of solar photovoltaic technology have improved accessibility and economic feasibility.
Government incentives such as tax exemptions and financing are pivotal in accelerating market growth.
Single-axis solar PV systems offer the lowest levelized cost of energy (LCOE) in Brazil, Chile, and Mexico.
Robust policies in countries like Brazil, Mexico, and Chile support renewable energy targets through power purchase agreements and clean energy certificates.

Market Growth Factors

The key driver for the rise in the Latin America solar power market is the high solar radiation in these countries which allows the production of large-scale solar power plants. In September 2024, Spanish energy firm Zelestra announced the completion of a $200 million solar field project in Colombia with 144MW capacity. The country's solar advantages have economic impacts as well, increasing the attractiveness of solar projects and off-grid electrification for rural areas, where energy infrastructure is lacking as well.

Falling solar technology costs have also driven market growth, with the International Renewable Energy Agency (IRENA) stating that solar photovoltaic costs have fallen with developments in technology, market growth and competition worldwide. The cost of renewable energy technologies decreased by 8% in Latin America in 2024, attributable to lower capital costs and improvements in supply chain efficiency. Lower costs especially benefit countries with impaired budgetary capacity, making solar photovoltaic projects more attractive for investment by developers and foreign investors.

Government initiatives, including exemptions from solar equipment tariffs and funding from Brazil's development banks, have also been important for the growth of the solar market. Power purchase agreements and clean energy certificates (CELs) to meet renewable energy requirements are also present in the Mexican market. Chile published a simplified process for solar project certification and financial programs for rural solar. In addition, in October 2024 the U.S. DOE announced an $861 million loan guarantee for two solar PV plants in Puerto Rico with a capacity of up to 200 MW, to help reduce risks for financing and stabilize the market.

Request Customization: https://www.imarcgroup.com/request?type=report&id=32530&flag=E

Market Segmentation

Deployment

Rooftop: Solar energy systems installed on rooftops, suitable for residential, commercial, and industrial buildings, providing decentralized power generation.
Ground-mounted: Large-scale solar installations mounted on the ground, typically used for utility-scale power generation.

Application

Residential: Solar power systems designed for individual households to meet domestic electricity demands.
Commercial and Industrial: Solar installations serving businesses and industries for their operational energy needs.
Utility-scale: Large-scale solar power plants feeding electricity directly into the grid to support regional energy requirements.

Region

Brazil
Mexico
Argentina
Colombia
Chile
Peru
Others

Regional Insights

Brazil is identified as a dominant regional market within Latin America due to favorable policies, abundant solar resources, and active investments. Specific statistics such as exact market share and CAGR by region are not provided in the source. The region continues to attract significant projects, contributing to overall regional market growth and expansion.

Recent Developments & News

In September 2024, Huasun showcased its zero busbars (0BB) products and perovskite-HJT tandem cells at Intersolar South America 2024 held in Sao Paulo, Brazil. In December 2023, MYTILINEOS Energy & Metals inaugurated its first-owned solar project in Latin America, the Willka Solar Park, developed with an investment of USD 110 million. This project contributes 109.2 MWp in DC of renewable energy, sufficient to power over 105,000 homes annually.

Speak to an Analyst: https://www.imarcgroup.com/request?type=report&id=32530&flag=C

Key Players

Zelestra
Huasun
MYTILINEOS Energy & Metals

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

Contact Us

IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA,
Email: sales@imarcgroup.com,
Tel No: (D) +91 120 433 0800,
United States: +1-201971-6302

About Us

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

This release was published on openPR.