Latin America Solar Energy Market Size, Share, Growth, and Analysis Report to 2026

Market Overview The <a href="https://www.imarcgroup.com/latin-america-solar-energy-market">Latin America solar energy market</a> was valued at USD 7.40 Billion in 2025 and is projected to grow to USD 19.36 Billion by 2034. With a compound annual growth rate (CAGR) of 11.28% from 2026 to 2034, this growth is propelled by the region's excellent solar irradiation and supportive government policies that foster the expansion of residential, commercial, and utility-scale solar power projects. The Latin America solar energy market reflects increasing adoption driven by declining technology costs and rising electricity demand. Study Assumption Years <ul> <li style="font-weight: 400;" aria-level="1">Base Year: 2025</li> <li style="font-weight: 400;" aria-level="1">Historical Year/Period: 2020-2025</li> <li style="font-weight: 400;" aria-level="1">Forecast Year/Period: 2026-2034</li> </ul> Latin America Solar Energy Market Key Takeaways <ul> <li style="font-weight: 400;" aria-level="1">The market size was USD 7.40 Billion in 2025.</li> <li style="font-weight: 400;" aria-level="1">The market is expected to grow at a CAGR of 11.28% from 2026 to 2034.</li> <li style="font-weight: 400;" aria-level="1">Ground-mounted deployment dominates with a 58% market share in 2025.</li> <li style="font-weight: 400;" aria-level="1">Commercial and industrial applications lead with a 36% market share in 2025.</li> <li style="font-weight: 400;" aria-level="1">Brazil is the leading region with a 29% market share in 2025.</li> <li style="font-weight: 400;" aria-level="1">The market is moderately competitive, driven by international and regional players focusing on vertical integration and strategic partnerships.</li> </ul> Sample Request Link: <a href="https://www.imarcgroup.com/latin-america-solar-energy-market/requestsample">https://www.imarcgroup.com/latin-america-solar-energy-market/requestsample</a> Market Growth Factors The main driver of solar market development in Latin America is the unusually rich solar irradiation resources, including the world's highest solar radiation in the Atacama Desert, which provides a higher capacity factor for PV electricity. Many Latin American countries can also rely on strong solar resources throughout the year, with only minor seasonal variations. This results in a higher energy yield per installed megawatt, improving the economics of projects considerably, and makes the region an ideal one for utility-scale solar power plants, at a low levelized cost of electricity (LCOE). Declining solar technology costs are also a contributor. Manufacturers have driven down the price of solar panels for the past decade through efficiency improvements, module design changes and better global supply chains. Local installation expertise has spread across the region, resulting in lower costs for the balance of system. For 2024, the renewable LCOE in the Latin America region declines by 8%. In Brazil, Chile and Mexico, solar PV on single-axis trackers remains the cheapest, making solar affordable to the most diverse population segments. Supporting government policies include tax holidays for solar equipment, financing from national development banks and net metering regulations allowing consumers and project developers to reduce upfront costs or improve project economics. An example is the Government of Colombia's COP 8.35 Trillion (~USD 2.1 Billion) program passed in 2025 to roll out rooftop PV for the 1.3 Million low-income households in Colombia by 2030. These long-term policies cover the risk of investments and ensure a constant level of solar capital is deployed. Market Segmentation Deployment: <ul> <li style="font-weight: 400;" aria-level="1">Ground-mounted: Dominates with 58% market share in 2025, favored for utility-scale applications due to abundant land, simplified installation, and efficiency in high-irradiation zones.</li> <li style="font-weight: 400;" aria-level="1">Rooftop: Present but less dominant; details not quantified in source.</li> </ul> Application: <ul> <li style="font-weight: 400;" aria-level="1">Commercial and Industrial: Leads with 36% market share in 2025, driven by businesses adopting solar to manage energy costs and fulfill sustainability commitments through power purchase agreements and net metering policies.</li> <li style="font-weight: 400;" aria-level="1">Residential and Utility-scale: Mentioned but no specific data provided on shares.</li> </ul> Region: <ul> <li style="font-weight: 400;" aria-level="1">Brazil: Market leader with 29% share in 2025, supported by strong net metering policies, favorable solar resources, financing mechanisms, and distributed generation growth.</li> <li style="font-weight: 400;" aria-level="1">Mexico, Argentina, Colombia, Chile, Peru, Others: Mentioned regions without detailed shares.</li> </ul> Regional Insights Brazil dominates the Latin America solar energy market with a 29% share in 2025. This leadership is due to favorable net metering regulations stimulating distributed generation growth, strong financing through development banks, and tax exemptions reducing capital costs. The country benefits from high solar irradiation, especially in northeastern states, along with competitive auction mechanisms for long-term power purchase agreements that nurture a robust pipeline of utility-scale projects. Recent Developments & News In November 2025, Iberdrola launched the Noronha Verde project in Fernando de Noronha, Brazil. The project features a 22 MWp solar plant paired with a 49 MWh battery storage system, aiming to establish the island as Latin America's first inhabited oceanic island with a fully sustainable energy model. The initial development phase is expected to be operational by April 2026. Key Players <ul> <li style="font-weight: 400;" aria-level="1">Atlas Renewable Energy</li> <li style="font-weight: 400;" aria-level="1">ArcelorMittal</li> <li style="font-weight: 400;" aria-level="1">Enel Green Power Chile</li> <li style="font-weight: 400;" aria-level="1">T Power</li> <li style="font-weight: 400;" aria-level="1">CODELCO</li> <li style="font-weight: 400;" aria-level="1">Scatec</li> <li style="font-weight: 400;" aria-level="1">BTG Pactual</li> <li style="font-weight: 400;" aria-level="1">Iberdrola</li> </ul> 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. 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 provides a comprehensive suite of market entry and expansion services. 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