Colombia unveils subsidy scheme for off-grid domestic PV

Facebook
Twitter
LinkedIn
Reddit
Email
The subsidies will reflect household income, estimated production and reference tariffs (Credit: Bikes/ Pixabay)

Colombia’s poorer, grid-isolated municipalities will receive support for the roll-out of domestic PV under draft rules unveiled by the Energy ministry.

Until 3 April, interested parties will be able to comment on proposals for a subsidy scheme meant to offset O&M costs of small-scale PV across so-called non-interconnected zones.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

These areas, mostly scattered across Colombia’s less-developed Pacific coast and Amazon basin, are challenging and expensive for power producers to service. Residents may use little energy but can also afford to pay little, typically turning to liquid fuels for electricity purposes.

The ministry’s solution will be subsidies that will reflect household income levels, estimated production in kWh terms and reference tariffs based on residents location.

The proposal does not offer figures on how large the subsidy pot will be; it specifies, however, that the aid may only cover “subsistence” power use levels that will be determined by Colombia’s energy planning agency UPME.

“Individual PV solutions fulfil the goal of increasing cover and satisfying energy demand in non-interconnected zones, in an efficient, resilient way that helps reduce carbon emissions,” reads the draft legislation, signed by energy minister María Fernanda Suárez.

Colombia’s rural PV push comes amid parallel efforts to prop up utility-scale renewable projects, with a target to boost installed capacity from 50MW to 1.5GW.

Earlier in March, PV developers Enel and Emgesa reaped an aggregate 238MW at the 4.01GW reliability charge auction, designed to guarantee supply when droughts hit Colombia’s hydro-reliant power system.

However, industry bidders hoping to secure contracts at the country’s first large-scale (1.183GWh) renewable auction were thwarted in late February, when the government pulled the plug amid anti-trust concerns. A new tender is slated to take place before the end of Q2 2019.

See here to comment on the draft proposals

Read Next

September 4, 2025
Gavin Newsom has signed an executive order to accelerate the permitting of energy generation projects that could be set to lose IRA support.
September 2, 2025
Scatec has signed a 15-year power purchase agreement (PPA) with BTG Pactual Comercializadora de Energia to develop a 130MW solar project in Colombia.
September 2, 2025
Spanish independent power producer (IPP) Grenergy has sold the fourth phase of its flagship solar-plus-storage project in Chile, Oasis de Atacama.
Premium
September 1, 2025
The UK’s new Labour government took power last summer, promising a renewable energy revolution, with solar playing a lead role.
Premium
August 29, 2025
PV Tech Premium hears from Renewable Properties and Silicon Ranch about the new 'start of construction' rules for US solar projects.
August 28, 2025
Latin America has the potential to unlock billions in clean energy investment if it aligns national policies with global sustainability goals and investor expectations.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines