Mexico Remains an Attractive Market for Distributed Generation

Q: Where does Mexico stand in renewable energy adoption and how does it compare to the rest of the world?

A: While the Mexican market seems a little slow due to the suspension of large-scale energy tenders, distributed generation continues to be fairly important. Compared to other countries in Central and Latin America, Mexico has an advantage in its slightly more mature market. All participants are active and Mexico has already experienced a boom. Mexico’s large-scale segment and distributed generation segment at residential, commercial, and industrial levels are quite mature in regulatory terms. This is a big difference, since some markets only develop one of the segments and do not cover the others. The only pending regulatory issue in Mexico is battery storage, which was left in the pipeline. Despite this, Mexico has an attractive market with a large installed capacity.

Mexico is approaching a capacity installed of 11GW, with almost 8GW in utility scale and 3GW in distributed generation. The country is a good reference point and has high demand. Brazil and Mexico are expected to be large energy consumers. Solar and renewable energies will have a market in Mexico for many years.

Q: What types of projects are more beneficial for the country, distributed generation or utility-scale projects?

A: Both are important, but distributed generation has a much greater impact because it involves many more companies and a greater number of actors. This adds dynamism and contributes significantly to the economy and job creation. However, large-scale generation is necessary in some situations, especially in states with a deficit in power generation and poor transmission lines. Both types of projects are important but distributed generation is the basis for comprehensive development within the country as it involves training professionals and creating companies and jobs. Distributed generation can be an excellent opportunity to develop comprehensive expertise. It could even lead to the export of knowledge to other countries in Central America, similar to what happened to Spain during its initial renewable energy boom.

At a residential level, it is vital to offer secure and comprehensive solutions, especially because people are not energy experts. Offering systems that operate with alternating current and low voltages, guaranteeing safety, can be of great benefit. This focus on security is crucial to attracting end customers, even if it means paying a little more for the peace of mind of having a completely secure system at home.

Q: How receptive has the Mexican market been to Enphase Installer Network (EIN)? How has it helped both installers and end-users in the solar energy ecosystem?

A: Enphase Energy, as a premium brand, leads by example by training professionals and clients through its Enphase University. We hold courses daily, many of them online, but we also have a Regional Training Center in Queretaro, where we teach courses in person. We run more detailed workshops and simulations at this center. Our goal is for people to not only learn the theory, but to be able to practically apply the knowledge. We want them to experience how to install Enphase equipment professionally, avoiding bad practices that could arise in the industry.

We do our part in making installers increasingly more professional, helping them comply with all the safety measures and criteria to carry out installations efficiently. We seek to make customers fall in love with solar technology, thus promoting the advance of solar energy in the world and ensuring that those who use it are satisfied with this technology.

Q: Where does Mexico stand in the early adoption of storage technology and what potential does it hold for its market?

A: Renewable technologies have penetrated markets across the world. However, once there is a certain penetration in the markets, challenges arise related to intermittency and the need to support the network to continue incorporating renewables. This support becomes crucial in countries that already have large installed capacity. In these cases, it is necessary for a high percentage of renewable energy installations to be carried out with battery backup. Battery backup not only interacts with renewable sources, but can also act as an independent support to electrical grids. As such, storage technology, such as battery energy storage systems, become a desired option.

While Mexico is still at an early stage in the adoption of storage technologies, it is inevitable that the market will grow over time. Electricity subsidies may make the foray into storage less attractive but with rising electricity rates, the trend is expected to change, making storage increasingly necessary to address intermittency and associated challenges. 

The next administration should revisit and address regulatory issues to be prepared when the penetration of renewables and storage becomes more significant. Expansion measures should also be implemented in transmission and distribution networks to facilitate the integration of these new technologies.

Q: What are Enphase's near-term plans and where does Mexico stand in this strategy?

A: Enphase recently launched products to penetrate Mexico’s residential market, ranging from microinverters made specifically for lower power panels to microinverters for the actual more powerful panels. We are also expecting to launch commercial and industrial products, such as three-phase microinverters, the new IQ Battery 5P and the electric car charger, all of them connected and interacting on the cloud. Several of these products are currently manufactured in Mexico. Our strategy focuses on offering comprehensive energy solutions that stand out for their quality and after-sales service, addressing the specific needs of the Mexican market.

Enphase Energy expects to launch a complete line of products for Mexico’s commercial market soon, aiming to become a comprehensive supplier for the energy needs of residences, businesses, and industries. We are working to create a comprehensive ecosystem that includes residential and commercial systems, batteries, and electric car chargers, allowing these technologies to complement each other. This will allow us to guarantee that the energy used to charge an electric car comes from renewable sources, effectively integrating solar panel and battery technologies.