Venezuela’s total installed solar panel capacity reached approximately 5.32 megawatts (MW) as of 2019.⁶

In early 2023, Venezuela’s Ministry of Electric Energy announced a plan to install 2,000 MW of panel solar energy by 2026, aiming to meet 8% of the country’s electricity needs. The initiative, rolled out in phases, begins with 500 MW in Zulia, Falcón, and Lara, with further expansion across central and western states. This solar energy plan aligns with a projected market growth rate of over 1.5% CAGR from 2024 to 2029, as Venezuela seeks to enhance its energy infrastructure.⁶

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In Venezuela, the average cost of electricity generation is exceptionally low, around $0.005 per kWh, due to significant government subsidies and strict price controls. This low pricing makes it challenging to recover investments in renewable energy, reflecting the strong governmental influence over energy pricing and the broader economic difficulties in the sector.

The volume of electricity generated in Venezuela was roughly 83 terawatt-hours in 2022, but costs per various sources were not documented.

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• Hydro power: 64%
• Natural gas: 25%
• Oil:11%
• Wind power: less than 0.1%
• Solar power: less than 0.1%

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Many regions in Venezuela face frequent power outages and limited electricity access from the national grid on a daily basis.

In 2021, approximately 75% of households experienced uninterrupted electricity supply.

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It appears that solar panel usage in Venezuelan households remains relatively low, with only a small percentage of the population able to afford and install such systems. The high cost of installations, often exceeding $4,000, poses a significant barrier for many households.

Currently, there are some isolated solar installations in several cities, mainly in businesses, and small hybrid systems on livestock farms or large plantations.

A pilot test is being prepared in Maracaibo by the Zulia Solar group, with 400 houses that would have panels on their roofs and 100 apartments with panels on their balconies. However, this is a limited initiative.

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The largest operational solar project is a 1.1 MW hybrid solar-diesel power plant located in Los Roques, which began operations in 2015.

There are ongoing plans to increase solar capacity significantly, with a target of installing 2,000 MW over the next three years, but these projects have not yet been realized.

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The government installed up to 50 MW of off-grid wind and solar hybrid systems in remote indigenous and rural communities through the „Sembrando luz“ program, but this has been abandoned for the past decade.

At UCAB, „El Techo Verde“ is positioned as one of the few initiatives in the Venezuelan capital that promotes the use of renewable resources such as solar energy.

The College of Engineers of Venezuela is another institution that sets an example at its headquarters, where it houses a square illuminated with streetlights whose light comes from solar energy.

The lack of a clear legal framework, economic incentives, and high equipment costs due to taxes and supply chain issues remain major barriers to scaling up off-grid solar in Venezuela.

Despite Venezuela’s vast potential for solar energy, on-grid solar demand remains largely untapped due to economic challenges, limited investment, and an overreliance on traditional energy sources.⁶¹⁴

The solar energy market in Venezuela is projected to grow at a CAGR of more than 1.5% from 2024 to 2029. This growth is driven by increasing energy demand, government initiatives to incorporate renewable energy into the national grid.

There is also a competition from wind energy development projects, with plans to incorporate 10,000 MW of wind energy by 2035, covering 10% of projected national electricity demand.

Venezuela’s overall average monthly salary across all sectors is around $30 USD, one of the lowest in Latin America.¹⁵¹⁶

The solar industry in Venezuela is still in a very early stage. Workers in Venezuela’s oil sector, which is more established than solar, are taking home minimum monthly salaries of just $20-40 as of 2023.

Venezuela’s oil sector, which was once a source of relatively high-paying jobs, now offers some of the lowest salaries in the world. This suggests solar may not pay significantly better.

The current population of Venezuela is 28,419,793.¹⁷

Estimate for Factory Rent¹⁸

The estimated cost for commercial business rent in Venezuela varies significantly based on location and size, ranging approximately $8 – $26 per m2.

Industrial Electricity Rate³

In 2023, the industrial electricity rate in Venezuela was approximately $0.053 per kilowatt-hour as of December.

Water Costs¹⁹²⁰

As of 2023, the average urban water tariff in Venezuela is approximately $0.41 per cubic meter, reflecting a significant increase from previous years due to inflation and economic challenges. Many residents and businesses face higher costs when relying on alternative sources, such as tanker deliveries, which can be much more expensive, often exceeding $1.90 per cubic meter.

Salaries and Wages¹⁵¹⁶

Workers of solar industry in Venezuela averagely earn around $20-40 monthly.

Rent for Office Space²¹

The average monthly rent for office spaces in Caracas is approximately $10 to $15 per m2, reflecting a significant increase in rental prices over recent years.

Insurance²²

The Venezuelan insurance market has faced significant economic and political instability in recent years, which can make financial statistics particularly volatile.

However, the broader Latin American insurance market reported a density of approximately $276.4 per capita in 2022.

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Electricity Generation

Venezuela’s electricity generation is predominantly reliant on hydroelectric power, accounting for approximately 61% of the total production, with the Guri hydroelectric plant being the largest contributor. In 2023, the country generated about 85.8 terawatt-hours of electricity, a decline from previous years due to ongoing economic and infrastructural challenges.

Transmission and Distribution

The transmission and distribution infrastructure in Venezuela faces significant challenges, including aging facilities and high levels of inefficiency. The system suffers from substantial losses, estimated at around 27.882 billion kWh in 2022, leading to frequent power outages and unreliable service for both residential and commercial users. This situation is exacerbated by a lack of investment and maintenance in the infrastructure. The government controls electricity prices, which complicates the financial viability of the sector.

Imports and Exports

In recent years, Venezuela has exported minimal electricity, primarily to neighboring countries, but this has been inconsistent. Historically, the country has focused on meeting domestic consumption needs, but the ongoing economic crisis and infrastructure challenges have limited its ability to trade electricity effectively.

Energy Policy and Development

The Venezuelan energy sector is primarily managed by state-owned entities, with Corpoelec overseeing electricity generation and distribution. The government has laid out plans to modernize the energy infrastructure and integrate renewable sources into the energy mix, particularly for rural areas. However, political instability and economic sanctions have hindered progress, leading to a reliance on fossil fuels and limited development of renewable energy sources.

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Government Initiatives: The Venezuelan government has expressed intentions to promote solar energy development, with plans announced in early 2023 to install 2,000 megawatts of solar capacity over three years. 

Legal Framework: A proposed „Organic Law on Renewable and Alternative Energies“ is in the works, which aims to establish a regulatory framework for renewable energy projects, including solar energy. This law is intended to facilitate the development and assembly of solar panels domestically and to attract foreign investment. However, it has not yet been enacted and remains under discussion in the national assembly.

Local Production: Venezuela has made strides in local solar panel production, with the first solar cells developed in 2018 at the National Center for Optical Technologies. The government emphasizes the use of „100% Venezuelan engineering“ in solar projects, which aligns with efforts to strengthen local manufacturing capabilities.

Community Projects: Smaller, grassroots solar initiatives have emerged, particularly in isolated regions, often supported by programs like Sembrando Luz. These projects aim to provide renewable energy solutions to communities lacking reliable electricity access.

Barriers to Growth: Despite these initiatives, significant challenges remain, including high import costs for solar technology, which can be tenfold compared to international prices. The economic situation and lack of clear economic incentives in the proposed regulations may hinder the growth of the solar sector.

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The Venezuelan government has initiated several programs and policies to promote solar energy production in response to its ongoing electricity crisis and the need for sustainable energy solutions:

Solar Energy Plan: In early 2023, Venezuela’s Ministry of Electric Energy announced a plan to install 2,000 megawatts (MW) of solar energy over three years, starting with 500 MW in the states of Zulia, Falcón, and Lara. This initiative aims to generate approximately 8% of the country’s electricity needs.

Financial Incentives: The government has implemented various financial incentives, including tax exemptions, subsidies, and feed-in tariffs, to attract investments in solar energy projects. These measures are designed to encourage both public and private sector participation in the solar market.

Organic Law on Renewable and Alternative Energies: A draft law aimed at promoting renewable energy sources has been proposed, which includes provisions for creating research centers to develop solar panels and wind turbines domestically. This law is still pending debate in the national assembly, but it is expected to provide a legal framework that could enhance investment in the sector.

Public-Private Partnerships: The government is exploring partnerships with private companies to facilitate the installation of solar energy systems. This includes initiatives where private entities are encouraged to seek alternative clean energy solutions due to the ongoing power cuts affecting the country.

Grassroots Initiatives: Organizations like Venezuela Solar are advocating for government intervention to reduce import taxes on solar panels and facilitate financing for households. They propose that the government should make bulk purchases from manufacturers to lower costs for consumers.

Despite these initiatives, several challenges hinder the effective implementation of solar energy projects in Venezuela:

Economic Constraints: The high costs associated with solar panel installations, exacerbated by import taxes and supply chain issues, make it difficult for average citizens to afford solar solutions. For instance, a basic installation can cost around $4,000.

Lack of Infrastructure: The solar energy market in Venezuela is still with limited installations and inadequate infrastructure to support widespread adoption. Although the country has significant solar potential, it currently generates less than 1% of its electricity from alternative sources.

Political and Regulatory Issues: The absence of a coherent national strategy and regulatory framework has led to fragmented efforts in solar energy development. Many initiatives are isolated and lack coordination among relevant government bodies, which is necessary for a comprehensive energy transition

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Solar Energy Plan: In early 2023, Venezuela’s Ministry of Electric Energy announced a plan to install 2,000 megawatts (MW) of solar energy over three years, starting with 500 MW in the states of Zulia, Falcón, and Lara.

3,000 MW Solar Power Generation: In 2023, President Nicolás Maduro announced a plan to generate 3,000 MW of solar power in the Venezuelan Andes region, which has been severely affected by power outages. This project involves joint efforts with China, India, and Turkey.

First Utility-Scale PV Project: In 2019, the Venezuelan government announced plans to build its first utility-scale PV project to strengthen its National Electric System.

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Solinal C.A.

• Headquarters: Monagas, Venezuela
• Website:https://www.solinal.com/
• Notable Project: A key player in the Venezuelan solar market, specialized in the distribution and installation of solar photovoltaic systems. The company focuses on providing solutions for both residential and commercial clients.

Ingesol C.A.

• Headquarters: Caracas, Venezuela
• Website:http://www.ingesol.com/about.php
• Notable Project: This company is involved in the installation of solar energy systems and offers various solar products. INGESOL aims to enhance energy efficiency through renewable energy solutions across Venezuela.

Araf Energy

• Headquarters: Caracas, Venezuela
• Website:https://arafenergy.com/
• Notable Project: Araf Energy is specialized in the energy sector, with a focus on providing solutions and services related to oil and gas. The company offers a range of services including engineering, procurement, construction, and maintenance for energy infrastructure projects.

Cero Apagones

• Headquarters: Caracas, Venezuela
• Website:https://ceroapagones.com/
• Notable Project: Cero Apagones is dedicated to providing solar energy solutions to combat the frequent blackouts in Venezuela. They offer installation services for solar panels and battery storage systems to ensure reliable power supply.

Energías Alternativas Solar Y Eólica de Venezuela, S.A.

• Headquarters: Caracas, Venezuela
• Website:https://solardemia.com/
• Notable Project: This company provides a range of renewable energy solutions, including solar and wind energy systems. They focus on installation and maintenance services for various solar applications.

Panel solar Venezuela

• Headquarters: Falcon, Venezuela
• Website:https://panelsolarvenezuela.com/
• Notable Project: Panel Solar Venezuela provides services related to the design, installation, and maintenance of solar photovoltaic systems for both residential and commercial clients. Their goal is to enhance the adoption of renewable energy in Venezuela, offering sustainable and cost-effective solar power options to help address the country’s energy challenges.

Summa solar

• Headquarters: Caracas, Venezuela
• Website:https://www.linkedin.com/in/summasolar/?originalSubdomain=ve
• Notable Project: Summa Solar is focuses on the design, installation, and maintenance of solar photovoltaic systems for residential, commercial, and industrial applications.