Market Information
Latin America Solar and Energy Storage Market Outlook (as of 2025)
Introduction
In recent years, Latin America has become one of the fastest-growing renewable energy regions in the world. Driven by supportive policies, high electricity costs, and the need for greater grid stability, the solar photovoltaic (PV) and battery energy storage system (BESS) markets in countries such as Brazil, Chile, Mexico, Argentina, and Colombia have expanded rapidly.
This blog provides an overview of the solar and storage markets across key Latin American countries, highlighting major projects, policies, and trends shaping the region in 2025.
1. Brazil: The Largest Solar Market in Latin America, with Rising Storage Demand
Solar Development
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Cumulative Installations: By 2025, Brazil’s cumulative solar capacity reached 53 GW, with 67% distributed and 33% utility-scale.
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Annual Growth: In 2024, solar additions totaled 14.97 GW (over 70% from distributed systems). For 2025, an estimated 13.2 GW of new solar will be installed (+25% YoY).
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Policy Support:
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Net Metering (NEM): Distributed PV users can sell excess electricity back to the grid.
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Tax Incentives: Systems under 5 MW are exempt from import and sales tax until 2045.
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Corporate PPAs: Driving large-scale adoption among commercial and industrial users.
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Storage Development
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Cumulative Storage: By 2024, Brazil had around 685 MWh of installed storage, 70% in off-grid systems.
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Annual Additions: In 2024, 269 MWh was deployed (+29% YoY); by 2025, this is expected to exceed 500 MWh.
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Key Projects:
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CampusGrid Microgrid (Unicamp University): 1 MW/1.27 MWh BESS + 565 kW PV.
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Santo Antônio Hydropower BESS: For peak shaving and drought resilience.
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Challenges: Market mechanisms for grid-scale storage remain underdeveloped, heavily reliant on policy support.
2. Chile: High Solar Penetration and Strong Storage Growth
Solar Development
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Cumulative Installations: By 2025, Chile reached 8 GWac of PV, supplying around 20% of national electricity.
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Annual Growth: 2024 added 1.7 GW, with 2–3 GW expected in 2025.
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Policy Support:
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PMGD Policy (<9 MW projects): Ensures fixed tariffs, protecting smaller projects from market volatility.
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Renewable Auctions: Large-scale PV + storage projects supported through competitive bidding.
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Storage Development
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Cumulative Storage: As of March 2025, Chile had 3.7 GWh of BESS deployed (48% of its 2030 target).
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Pipeline: Another 500 MW/2 GWh of projects expected online in late 2025.
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Key Projects:
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Atacama Oasis (Greenergy): 3 GWh BESS supplied by Sungrow.
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Capricornio Project: 87.9 MW PV + 67 MW/152 MWh BESS.
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Challenges: Grid congestion and curtailment remain serious issues in high solar regions.
3. Mexico: Policy-Driven Solar + Storage Integration
Solar Development
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Cumulative Installations: By 2025, Mexico’s solar reached 4 GWdc, with 2 GW added in 2024.
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Policy Support:
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National Electricity Plan (2025–2030): Targets 4,673 MW of new solar (2027–2028).
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Residential Subsidies: Government covers 25% of system costs, with low-interest loans for the remainder.
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Storage Development
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Cumulative Capacity: Expected to reach 10 GW by 2025, mostly paired with solar.
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Key Project: Puerto Peñasco Solar + Storage: 1 GW PV + 190 MW BESS, one of the world’s top five integrated projects.
4. Argentina & Colombia: Emerging Markets with High Potential
Argentina
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Solar Installations: Expected to reach 1.4 GW by 2025, with 1.08 GW added in 2024.
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Storage Pipeline: Cauchari Solar: 300 MW PV + 100 MW/200 MWh BESS (Argentina’s first large-scale solar + storage project).
Colombia
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Solar Installations: By 2025, PV capacity is expected to reach 1.8 GW (+716 MW in 2024).
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Policy Push: In 2024, Colombia launched its first BESS auction, targeting 300 MW/1.2 GWh.
5. Regional Summary and Future Trends
| Country | Solar Capacity (2025) | Storage Capacity (2025) | Key Drivers |
|---|---|---|---|
| Brazil | 53 GW | 685 MWh | High electricity costs, distributed policies, PPAs |
| Chile | 8 GW | 3.7 GWh | Auctions, grid stability needs |
| Mexico | 4 GW | 10 GW (planned) | National electricity plan, PV + storage integration |
| Argentina | 1.4 GW | 200 MWh (planned) | Strong solar resources, policy support |
| Colombia | 1.8 GW | 1.2 GWh (planned) | Storage auction mechanism |
Outlook
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Solar Growth: Brazil, Chile, and Mexico will continue to dominate, with Argentina and Colombia accelerating adoption.
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Storage Expansion: Chile and Brazil lead, while Mexico’s large integrated projects set new benchmarks.
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Challenges: Grid upgrades, policy consistency, and financing costs remain key barriers.
Conclusion: Opportunities for Energy Storage Providers
Latin America’s solar and storage markets are expanding at record speed. Brazil and Chile are leading deployment, Mexico is pushing integrated solar + storage, and Argentina and Colombia are emerging with supportive frameworks.
For battery energy storage system (BESS) providers, this growth translates into rising demand for grid stability, distributed backup solutions, and utility-scale integration. Chinese companies such as Sungrow, BYD, and CATL are already taking leadership roles, but opportunities remain for global players to contribute technology and expertise.
As Latin America moves toward a clean energy future, BESS will be the key enabler of reliability, flexibility, and long-term sustainability.
