Latin American Governments Incentivize Domestic Production of Solar Panel

Mexico City—To bolster local supply chains and reduce reliance on imports, Mexico and Brazil have unveiled incentive packages supporting the domestic manufacture of solar-panel accessories—ranging from bird-exclusion mesh to cable-management systems. These measures aim to stimulate job creation, foster technology transfer, and drive down installation costs across the region.

Mexico’s “Green Industry” Program
Under Mexico’s Energy Transition Law and General Climate Change Law, manufacturers setting up solar-accessory production facilities in designated industrial zones (e.g., Sonora, Jalisco) qualify for:

• A 50 percent reduction in import duties on raw materials for five years.

• Low-interest loans through Nacional Financiera (NAFIN) at preferential rates.

• Fast-track permitting via the Secretariat of Economy’s clean-energy infrastructure window.

Local firms such as EcoRed Solar have announced plans to expand from component assembly to full mesh fabrication, leveraging these incentives to target both domestic projects and neighboring Central American markets.

Brazil’s “RenovaBrasil” Initiative
Simultaneously, Brazil’s Ministry of Mines and Energy has launched the RenovaBrasil program, offering:

• Grants covering up to 30 percent of capital expenditures on factory automation and precision welding equipment.

• Tax credits equivalent to 5 percent of annual revenue for the first three years of operation.

• Technical-assistance vouchers redeemable with Embrapii (Brazilian Agency for Industrial Research and Innovation).

Major Brazilian manufacturers, such as SolarTecido in São Paulo, are investing in automated PVC-coating lines to meet rising demand under Brazil’s Ten-Year Energy Plan, which foresees solar capacity growing from 23 GW today to over 100 GW by 2035.

Impacts and Outlook
By 2027, analysts predict Latin America will transition from a net importer to a balanced exporter of solar-panel mesh, with regional production capacity exceeding 200 million square meters annually. These policies not only strengthen energy security but also create a virtuous cycle of skills development and industrial diversification, positioning the region as a competitive supplier in the global solar-accessories market.