We are pleased to announce our expansion into Mexico, where Odyssey’s finance platform will be made available to businesses throughout the country. Given that Mexico is emerging as one of the fastest-growing solar markets in Latin America, we see this as a critical next step in achieving our mission to scale capital deployment into distributed energy globally.
Why Mexico? A market ready for solar transformation
Mexico’s installed distributed solar capacity hit approximately 3.36 GW by the end of 2023, after adding a record 728.93 MW of new small-scale PV in that year: a 27.7% increase over 2022. This rapid expansion continued into 2024, with total distributed PV capacity rising another 31.6% in the first half of 2024 to reach about 3.89 GW. The market growth underscores the strong demand for distributed solar solutions in Mexico. With rising energy costs, corporate sustainability commitments, and nearshoring investments, businesses are actively seeking clean, cost-effective energy solutions.
Why now? Key market drivers
- High solar potential: 85% of Mexico receives top-tier solar irradiation, maximizing energy output and ROI.
- Rising energy costs: Businesses in manufacturing, retail, and hospitality are turning to solar to cut costs and work on savings. Since 2020, power prices have been rising by roughly 15% per year. In 2023, industrial electricity rates averaged about 70% higher than those in the United States, putting pressure on businesses to seek cheaper onsite generation.
- Corporate sustainability: Multinationals and factories need clean energy solutions to meet ESG goals.
- Regulatory changes: Recent regulatory developments are favoring distributed generation. Mexico’s authorities have raised the threshold for permit-free distributed generation projects from 500 kW to 700 kW, allowing larger rooftop and onsite solar systems to interconnect more easily, especially in cities like Guadalajara, CDMX, and Mérida.
- Strong financial incentives: 100% tax deduction on solar investments, allowing companies to deduct 100% of solar equipment investment in the first year of operation and Clean Energy Certificates (CELs) continue to improve project economics.
Introducing Odyssey’s supply chain credit offering
One of the biggest challenges in scaling solar adoption is access to financing: for EPCs, installers, developers and suppliers. That’s where Odyssey’s supply chain credit comes in.
Odyssey provides embedded credit in orders placed in its procurement platform, enabling buyers to access the materials they need despite working capital constraints. By integrating credit lines directly into the procurement process, Odyssey ensures seamless transactions, allowing projects to move forward efficiently while supporting cash flow management.
Let’s connect: ready to finance and scale solar in Mexico?
Get in touch to learn how Odyssey can help you finance your solar projects in Mexico.
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