Q: What unique features do SOLEA’s solar energy solutions offer that set them apart from competitors?

JI: We focus on generating energy cost savings for clients and offering solid guarantees. For every kW-hour that our system fails to produce, we reimburse the client double its cost. Our financial expertise also allows us to advise clients on the best payment solutions. The market offers various options, including loans, financial leases, pure leases, or Power Purchase Agreements (PPAs), but clients often do not know how to choose among them. This is where our financial expertise comes into play.

FG: As a natural consequence, we maintain high quality in our installations. Everything is designed to avoid warranty issues and ensure optimal energy generation for clients.

Q: What has been the biggest challenge SOLEA has faced in Mexico since its creation?

JI: An initial challenge for SOLEA was raising our first round of capital in 2021 in an emerging sector in Mexico. This led to the broader challenge of developing a solid business model and finding qualified personnel. While labor is available, working conditions are often suboptimal. We are committed to developing our own workforce, which is essential for installing solar panels. We focus on training and motivating top performers to retain them.

FG: This challenge persists, as many talented people in Mexico are sometimes not valued. We also face ongoing challenges with project interconnections, as each project has unique requirements. While there is a national process for connecting photovoltaic systems, variations exist that require us to adapt. We have been successful in interconnecting our solar projects with CFE one to three months after finishing the solar installation.

Q: What have been SOLEA’s major milestones during 2024?

FG: We aim to foster a strong company culture that encourages professional and aspirational growth. A key differentiator is our donation of 2% of sales to environmental NGOs and programs for climate change mitigation and education, with alliances with Grupo Ecológico Sierra Gorda and Reforestamos NGOs. Other achievements include rapid and stable sales growth, as well as financial solidity. A significant accomplishment is that we have never had to pay out on our generation guarantee. Our portfolio consistently performs near 100%, ensuring that we deliver on the promised savings to all our clients. This is a major achievement, as clients usually prioritize savings alongside sustainability.

JI: We just celebrated five years in business. We recently completed a solar project with 1,800 panels in Veracruz for a food industry client, which involved three CFE connections and presented considerable complexity. We are also part of the 2023 cohort of the UK's Climate Finance Accelerator and are finalists for the HSBC Sustainability Award.

Q: What challenges does SOLEA experience as demand increases due to nearshoring?

JI: Translating an investment announcement into actual operations is difficult. We have engaged with foreign companies interested in exploring renewable energy in Mexico, specifically in distributed generation. A crucial first step is having a connection to CFE, as clients must be tied to the grid for compensation. Energy availability is essential. There is increasing pressure for renewable energy, especially from those in the automotive supply chain, which often ask for additional renewable options beyond solar installations for their sustainability metrics.

FG: Clients often require immediate energy for their equipment, and we encounter more companies needing significant power, like 3MW or 5MW. Today, because of the electrical network saturation, the physical availability of connecting new medium and big consumers is a major challenge. In consequence, there is an increasing interest in other technical solutions that exist to tackle electricity shortage, for example a combination of solar photovoltaic, battery storage and gas engines.

Q: How does SOLEA adapt to different clients’ needs and energy-sourcing strategies?

JI: We also provide battery systems for energy arbitrage, allowing clients to optimize their consumption profile and reduce cost. We also work with large clients interested in migrating to the wholesale electricity market (MEM) and partner with qualified suppliers to offer on-site solar and a reliable energy supply.

FG: We are seeing isolated grids emerging in the country, particularly among large, energy-intensive companies that generate their own energy, often using combined cycle systems. Some industrial parks are also developing their own energy solutions, integrating gas engines, battery storage, and solar PV, which is a cost-effective solution to obtain stable electricity supply for industrial consumers.

Q: How do you expect the solar energy market to evolve in Mexico over the coming years?

JI: The solar distributed generation market in Mexico is still small. It is efficient to generate energy close to where it is consumed, as this reduces costs. However, a symbiotic relationship is necessary because distributed generation cannot thrive alone. Regulatory rumors about increasing limits can further hinder installation, even for clients with ample space.

Power outages are creating new opportunities in the electricity market. For example, using batteries as backup systems can maintain operations during outages. However, many companies may not see the value unless they have documented losses from forced shutdowns. Other manufacturers, especially in just-in-time scenarios, recognize the need for batteries to avoid penalties for delays.

FG: If it is true that the distribution networks and primary generation sources are generally stressed, statistics surprisingly indicate that eight out of 10 network issues are caused by consumer misuse of energy, not by CFE. This is why there is the Network Code which forces all actors within the network (generation, consumption, transmission, distribution) to work with high standards to co-create a more stable network.  In particular, a vast majority of medium-voltage consumers do not meet these quality standards, indicating a significant market opportunity for improvement.

Solea helps them to update their electrical installation to comply with Network Code.

Q: What trends in renewable energy are you most excited about, and how is SOLEA positioning itself to capitalize on them?

FG: Exciting developments may emerge in the energy industry, particularly with AI. We are already witnessing batteries that can connect to supply networks and charge at specific times based on demand fluctuations. We are beginning to conduct tests and iterations in this area. AI in energy management will likely become increasingly significant in the future.

We emphasize a strong culture of integrity and excellence in our operations. By doing things well, we position ourselves as a reference in the market, gradually gaining regional and national presence. Clients who see savings often return for additional projects, which helps us expand our influence.

Q: What other environmentally focused campaigns is SOLEA undertaking?

JI: While solar panels help mitigate emissions, simply installing them is not enough. There is an urgency to take additional steps. Every effort matters, and we must progress with every possible action.

FG: The entire team feels a pressing need to take action. Looking at the issue broadly, it can seem like our efforts are just a drop in the ocean, yet we cannot remain idle. Our vision is to build a for-profit company because we believe it allows for faster growth and greater impact. We aim to install solar panels that benefit the environment while also donating 2% of our sales to support programs for raising awareness, reforestation, and conservation initiatives.

Q: What are SOLEA’s goals for 2024 and 2025?

JI: We have a couple of pending projects that we hope to finalize soon. For 2025, we aim to triple the company’s sales, which will lead to several new hires. We are excited about the prospect of providing good jobs to the community.

FG: Our 2024 success is linked to 2023 preparation and hard work. We are now focusing on what lies ahead for 2025. By the end of 1H25, much of our business momentum will be established. In addition to strengthening our solar division, we will also focus heavily on Battery Energy Storage System (BESS) solutions.

SOLEA specializes in electricity generation through photovoltaic solar systems and battery energy storage systems for C&I. With extensive national experience, SOLEA is committed to delivering the highest quality in its services.