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Panama Solar Power Market Outlook to 2028

Panama Solar Power Market Outlook to 2028

Market Research Reports | Q1 2024 | Report ID: BR059

About the Report

The Panamanian solar power market is one of the leaders in the South America solar power market and is expected to grow significantly in the coming years, driven by a number of factors, including favorable government policies, declining solar PV costs, rising electricity demand, and surging electricity prices.


Nevertheless, the Panama solar energy sector confronts specific challenges. Primary among these are grid integration and financial considerations. Solar energy projects entail substantial development costs, and securing financing can be a major obstacle for certain businesses and individuals, particularly given the declining investments in the nation's renewable energy sector. 


Panama Solar Energy Prospectus 

Panama's solar energy prospects are quite promising, with the country benefiting from an average daily solar irradiance of 4.8 kWh/m². This level of solar irradiance indicates the amount of solar energy received per square meter in a day and serves as a key factor for assessing the viability of solar power generation in a region. This irradiance level is relatively high, indicating that Panama receives a substantial amount of solar energy throughout the year.


The southern provinces of Chiriquí and Veraguas stand out as particularly advantageous areas for solar energy development in Panama. These regions enjoy an even higher average solar irradiance of over 5 kWh/m² per day. This elevated solar resource potential in the south of Panama makes it an ideal location for solar energy projects.


The abundant solar irradiance in these regions holds great promise for the growth of solar power generation in Panama.


Current Scenario 

Solar power directly contributes to Panama’s energy security and independence, as well as helping to meet rising electricity demand and carbon dioxide emission reduction goals. Panama has experienced remarkable growth in its solar power capacity, and this trend is set to continue as the nation grapples with increasing energy demands and its dedication to achieving emission reduction goals. 


In just under a decade, Panama has witnessed a substantial surge in solar power installations, with installed capacity expanding from a mere 4 MW in 2013 to an impressive 522 MW by the close of 2022. As of July 2023, solar photovoltaic plants accounted for around 11% of Panama's installed power generation capacity. 



The nation has a significant pipeline of solar power projects in the future, which are expected to further bolster its solar energy capacity and contribute to diversifying Panama’s energy mix and achieving its emission reduction goals.


(You can access a comprehensive list of both existing and upcoming solar power projects, along with their current status, through our Panama Solar Energy Database)



One of the major and most prominent drivers for the global solar power market is effective support frameworks. Similarly, the rapid solar photovoltaic installations in Panama are primarily due to ongoing supportive government policies and initiatives. 


In order to promote clean energy sources, the government has charted Panama's National Energy Plan 2015-2050, which includes a target for 70% of installed generation capacity to come from renewable energy by 2050. The country’s efforts to promote renewables development include tax policies and duty exemptions. 


Panama has introduced several significant incentives and policies to specifically promote solar power generation. Notably, solar photovoltaic equipment enjoys exemptions from import taxes and value-added tax (VAT). Additionally, it qualifies for a tax credit of up to 5% for income tax, along with accelerated depreciation benefits.


In addition to these fiscal incentives, a net metering policy was introduced in 2016, establishing guidelines for setting up self-generation facilities and enabling connection to the distribution grid while allowing the sale of surplus power. Under this policy, credits are accumulated in kilowatt-hours, up to a limit of 25% of a customer's annual or semi-annual historic consumption. These credits are subsequently refunded to the customer's electricity account, further encouraging solar power adoption and grid connectivity. 


Some of the Recent Trends and Developments

  • In October 2023, Panama lawmakers approved a modification to the solar power incentive regime law. The change eliminates the selective consumption tax, which applies to certain imported products.
  • The solar industry in Panama is experiencing significant advancements that are poised to ease supply chain challenges in the upcoming years. For instance, a significant distribution agreement was signed between LONGi Solar Technology Co., Ltd. and CELTEC S.A., a leading wholesale solar distributor in Panama. Covering 50 MW, this agreement targets the expanding small-scale photovoltaic market in Central America, providing state-of-the-art solar modules to fuel new residential, commercial, and industrial projects in the region.
  • The Panamanian government is taking steps to advance the rollout of distributed generation (DG) in the country. This includes approving a national DG strategy in January 2022, modifying the solar power incentives regime law to eliminate the selective consumption tax, and issuing a call for expressions of interest to support the design of a solar DG installation program.
  • Universal Solar America, a company specializing in procurement and development services for large commercial and utility-scale solar contractors in the United States, is set to establish a substantial 600-MW solar panel assembly facility in Panama.
  • Enel Green Power Panama, the renewable energy arm of Enel SpA, has announced the completion of the installation of the solar panels for the Madre Vieja project. This solar park is situated in the Progreso jurisdiction within the Barú district of Panama's Chiriquí province. It spans across a vast area of up to 33 hectares and is projected to have an installed capacity of 31 MW.


According to Blackridge Research, the outlook for solar PV installation remains strong in the medium term, and the market is expected to expand during the forecast period due to compelling economics and decarbonization commitments by various stakeholders.


Blackridge Research’s Panama Solar Power Market Outlook report consolidates the developments and builds a perspective on growth from the point of view of the solar sector in its current and future roles.


The report provides a comprehensive analysis of the historical development, the current state of the solar power installation scenario, and its outlook.


The majority of the data in the report has been derived from multiple bottom-up and top-down analyses, as well as proprietary models, databases, and offerings – the Solar Intelligence Hub and Global Project Tracker service-built from public and exclusive sources over the years.


The insights include, but are not limited to, the market data, solar PV installation data and capacity additions data and forecast, government policies and regulations, project data (upcoming solar power projects, under-construction projects, and operating/commissioned solar power plants), company profiles of major players, and competitive landscape analysis.


The market research report covers market dynamics, the growth potential of the photovoltaic (PV) and concentrated solar power (CSP) markets, economic trends, and investment & financing scenarios in Panama.


Further, the report looks at the current state and assesses the potential of residential, non-residential, and utility-scale solar PV deployment.


Special attention is given to depicting the impact of the changes in government policies and the regulatory landscape.

  Table of Contents

1. Executive Summary

2. Research Scope and Methodology

3. Market Analysis

  • 3.1 Introduction
  • 3.2 Market Dynamics
    • 3.2.1. Drivers
    • 3.2.2 Restraints
  • 3.3 Market Trends & Developments
  • 3.4 Market Opportunities
  • 3.5 Key Projects
  • 3.6 Government Policies and Regulations

4. Market Outlook

  • 4.1 Annual Solar PV Installed Capacity, 2016-2028, in MW
  • 4.2 Cumulative Solar PV Installed Capacity Forecast, 2016-2028, in MW

5. PESTLE Analysis

6. Market Segmentation & Analysis

  • 6.1 By Technology
    • 6.1.1 Photovoltaic (PV)
    • 6.1.2 Concentrated Solar Power (CSP)
  • 6.2 Deployment by Segment
    • 6.2.1 Residential
    • 6.2.2 Non-Residential & Utility

7. Competitive Landscape

  • 7.1 List of Notable Players in the Market
  • 7.2 M&A, JVs, Partnerships and Agreements
  • 7.3 Strategies of Key Players

8. Key Company Profiles

9. Conclusions and Recommendations


Additional Notes


  This report helps to:-

  • Gain a deeper understanding of the Panama solar power market.  
  • Equip yourself with rigorous analysis and forward-looking insight into the Panama solar power market 
  • Gain an understanding of uncertainty and discover how the most influential growth drivers and barriers in the country will impact market development
  • Evaluate the attractiveness of the industry and gain a comprehensive view of the emerging market trends and developments to identify opportunities and develop a strategy
  • Discover information on government policy, regulation, and targets in the country
  • Gain perspectives and insights about the current state of the industry and how the market is likely to evolve in the next five years
  • Keep abreast of the project activity and developments in the country
  • Understand the market and its participants to make the best strategic decisions

  Who need this report?

  • Solar PV Module Manufacturers
  • Solar PV Inverter Companies
  • EPC/Developers
  • Power Plant Owners/Utilities
  • Operation & Maintenance (O&M) Companies
  • Logistics and Warehousing
  • Investor Community
  • Financing Companies
  • Government Bodies & Industry Organizations
  • Other Stakeholders

  What's included

Report - Panama Solar Power Market Outlook to 2028.pdf
Market Data - Panama Solar Power Market Outlook to 2028.xls

  Why buy this report?

  • Gain a deeper understanding of the impact of Covid-19 on the <Panama Solar Power Market>.
  • Equip yourself with rigorous analysis and forward-looking insights into the <Panama Solar Power Market> across multiple regions.
  • Gain an understanding of uncertainty and discover how the most influential growth drivers and restraints in the regions will impact market development.
  • Assess market size data and forecasts to understand how the demand across various segments evolves over the next few years.
  • Gain a comprehensive view of the emerging market trends and developments to assess market opportunities.
  • Be better informed of your competition by gaining access to detailed information and analysis of key industry players.
  • Keep on top of M&A developments, JVs, and other agreements to assess the evolving competitive landscape and enhance your competitive position

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