The industrial sector is looking for strategies to advance in the decarbonization of its processes without losing productivity or efficiency. In this sense, one of the main trends is on-site solar energy. That is, the generation of electricity with solar panels installed in the establishments themselves. 

In Mexico, the use of distributed generation is defined in the Electricity Industry Law (LIE) as the production of electricity in plants with an installed capacity of less than 0.5 MW. If these parameters are met, it will be eligible for various legal advantages and facilities to start its operation compared to large power plants. 

Figures from the Energy Regulatory Commission (CRE) reflect an exponential growth of distributed generation, going from 4,396 interconnection contract applications issued in 2014 to 76,101 that were processed in 2023, with a cumulative total of more than 411,000 in a decade. As for the capacity installed under this model, it went from just 61.87 MW to 3,361 MW in the last ten years, with the vast majority being photovoltaic projects (99.3%).  

99% of distributed generation in Mexico corresponds to photovoltaic solar energy.  

Several factors have driven this significant growth in on-site solar energy in just 10 years: 

● Mexico is among the countries with the highest solar irradiation in the world, making photovoltaic technology ideal for power generation. 

● Competitive prices for solar panels and batteries. 

Financing options. 

CHALLENGES AND CHALLENGES  

While companies are interested in developing on-site solar energy projects to make their processes more efficient, reduce their energy costs and advance in their decarbonization, there are still several challenges that companies face when they want to join distributed generation. 

One of the main barriers reported by Mexican businesses is the administrative processes and the large amount of documentation required to initiate the interconnection process, which can seem overwhelming. In addition, waiting times for approval can be lengthy and require interaction with multiple regulatory authorities. 

From a technical standpoint, the implementation of on-site generation technologies can be perceived as a challenge. For example, the need to modify business infrastructure may discourage these projects that contribute to the energy transition. 

Jalisco, Nuevo León and Chihuahua lead in photovoltaic self-consumption, with 33% of the total installed capacity in the country.