Mexico Solar Energy Market Size (2024 - 2029)

The solar energy market in Mexico is poised for significant growth, driven by the country's favorable solar irradiation profiles and the aggressive deployment of solar PV plants. Despite challenges such as limited land and an underdeveloped power grid, the market's expansion is supported by declining solar technology costs, government policies, and ambitious renewable energy targets. Utility-scale projects are expected to dominate, with increased investment and financing efforts aligning with Mexico's renewable energy goals. These factors collectively contribute to the positive outlook for the market size of solar energy in Mexico during the forecast period.

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Market Size of Mexico Solar Energy Industry

Mexico Solar Energy Market - Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 8.00 %
Market Concentration Low

Major Players

Mexico Solar Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order

Mexico Solar Energy Market Analysis

The Mexican solar energy market is expected to register a CAGR of more than 8% during the forecast period of 2020-2025. Mexico has some of the most attractive solar irradiation profiles across the world. The country's total territory lies between the latitudes 14°N and 33°N and the longitudes 86°W and 119°W, signifying that it is one of the few countries that lie within the most favorable sunbelt on the planet. Moreover, Mexico has emerged as one of the top markets for solar PV in recent years, owing to its aggressive deployment of solar PV plants that were awarded in the first three long-term auctions (LTAs) during 2015-2018. The country touched the GW mark in 2018 for the first time, with 2.7 GW newly installed capacity in the same year. In addition, the declining costs of solar technologies are becoming competitive with fossil fuel sources, and additional subsidies on solar systems are further driving the solar power market. On the other hand, in the absence of any new initiatives, limited land, and factors, such as cancellation of the fourth auction round by the new government, an underdeveloped power grid of Mexico is expected to hinder the growth of the solar PV market in the coming years.

  • Utility-scale solar energy projects have been growing in Mexico, which may dominate the market during the forecast period, owing to higher investment and government policies. Many ambitious solar energy projects are lined up during the forecast period, which may drive the solar market at the estimated growth rate.
  • In Mexico, the solar financing wave is being fueled in large part by the country's renewable energy goals, which are 35% by 2024 and 50% by 2050. The higher investment and government policies are expected to provide good opportunity to the Mexican solar energy market during the forecast period.
  • Increasing solar energy installations, owing to the projects announced in the LTAs during 2015-2018, increasing demand for decentralized solar energy systems, and the ambitious renewable energy targets are expected to drive the solar energy market in Mexico during the forecast period.

Mexico Solar Energy Industry Segmentation

The scope of the Mexican solar energy market report includes:

Deployment
Residential
Commercial
Utility-scale
Technology
Photovoltaic
CSP
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Mexico Solar Energy Market Size Summary

The solar energy market in Mexico is experiencing significant growth, driven by the country's favorable solar irradiation profiles and strategic government initiatives. Mexico's location within the sunbelt makes it an ideal candidate for solar energy development, and the country has become a leading market for solar photovoltaic (PV) systems. The aggressive deployment of solar PV plants through long-term auctions has propelled Mexico to the forefront of solar energy adoption, with substantial capacity additions in recent years. The declining costs of solar technologies, coupled with subsidies, are making solar power increasingly competitive with fossil fuels. However, challenges such as limited land availability, an underdeveloped power grid, and the cancellation of key auction rounds by the new government pose potential hurdles to the market's growth trajectory.

Utility-scale solar projects are expected to dominate the Mexican solar energy market, supported by substantial investments and favorable government policies. The country's renewable energy targets, aiming for significant contributions by 2024 and 2050, are fueling a wave of solar financing and project development. Decentralized solar systems are also gaining traction, particularly in urban areas, as the cost of solar PV systems continues to decrease. This growth in distributed solar generation is contributing to the overall expansion of the market. Despite being fragmented, the market is supported by major players such as Sojitz Corporation, Enel Green Power SpA, Trina Solar Ltd, Martifer Solar SA, and Jinko Solar Corporation, all of which are contributing to Mexico's emergence as a primary solar energy market.

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Mexico Solar Energy Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2025

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTEL Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Deployment

      1. 2.1.1 Residential

      2. 2.1.2 Commercial

      3. 2.1.3 Utility-scale

    2. 2.2 Technology

      1. 2.2.1 Photovoltaic

      2. 2.2.2 CSP

Mexico Solar Energy Market Size FAQs

The Mexico Solar Energy Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)

Sojitz Corporation , Enel Green Power SpA , Trina Solar Ltd, Martifer Solar SA and Jinko Solar Corporation are the major companies operating in the Mexico Solar Energy Market.

Solar Energy Market in Mexico Report Snapshots

Solar Energy Market in Mexico Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)