The drop in photovoltaic technology prices is redefining the solar business globally and opening an opportunity for Central America to accelerate new investments. With TOPCon utility modules around USD 0.08/W , according to InfoLink Consulting, and an installed capacity of 7,262 MW in Central America and the Caribbean, according to IRENA, the region has the conditions to drive a new phase of growth.
For Luis Contreras, Managing Director Europe and LATAM of Yingli Solar , the combination of historically competitive costs, abundant solar resources and the advancement of storage creates a favorable scenario for continuing to incorporate renewables with greater flexibility.
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"We are at a point in the history of the solar industry where competitiveness is stronger than ever, fundamentally at the cost level," he stated during his participation in FES Guatemala.
The expansion of manufacturing capacity for modules, batteries, and inverters in Asia explains much of this situation. The executive indicated that this growth accelerated cost reductions and allowed the equipment to maintain highly competitive pricing despite the volatility experienced over the past year and a half.
Lower costs are no longer the only factor driving the market. According to Contreras, technological advancements in energy storage will allow many electrical systems to continue incorporating renewable generation, even in markets where the grid is beginning to show limitations .
"There is a spectacular technological development that brings an opportunity to those markets that have a strong congestion of renewables, and that with these hybridization systems through storage can find solutions that allow them to continue advancing in the integration and flexibility of the management of electrical systems, with a highly competitive energy production cost," he said.
The executive cited the cases of Spain, Italy, and Chile , where energy storage is playing a key role in resolving congestion problems. In his view, Central America still has time to capitalize on this experience before infrastructure constraints become a barrier to renewable energy growth .
"Without a doubt, this is a great opportunity for Central America, which also combines a great solar resource, a need to improve electrical infrastructure, and a sustained and growing demand for energy," he emphasized.
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The executive warned that the region's potential will depend on markets making progress in regulation, network expansion planning, access to financing, and the development of technical capabilities .
"These hybrid solutions contribute to that energy growth. Of course, they have to face certain obstacles: clear rules, clear planning for improving the electricity grid, bankability, and the technical capacity to carry out the projects," he explained.
Although cost remains a primary factor in choosing a provider, the decision is no longer solely based on who offers the cheapest module . The manufacturer's bankability, technical performance, and long-term reliability are increasingly important considerations in the evaluations of developers and financial institutions.
"Price is always key; it's one of the 'do or don't do' requests when you talk to any client," he acknowledged.
From that point on, Contreras indicated that the evaluation incorporates variables such as efficiency, power, the module's behavior in the face of high temperatures or low irradiance, degradation, and the ability to operate for 30 years under demanding conditions , backed by appropriate guarantees.
It is also important that the results promised in the technical specifications are reflected in the actual operation of the project , especially when evaluating the levelized cost of energy (LCOE).
"The goal is clearly to ensure that what is put in a datasheet or a .pan file corresponds to reality. It's not just about making it work in an Excel model or calculation, but about ensuring that the calculated LCOE actually behaves that way in reality," he stated.
The Yingli Strategy
Faced with this scenario, Yingli Solar seeks to differentiate itself with a proposal that combines technology, financial backing and technical support throughout the entire project cycle , from engineering to commercial operation.
"That's the approach Yingli Solar focuses on: not only providing high-tech, high-quality equipment, but also trying to support the client in all phases of development, during construction, and during the operation of the project," Contreras concluded .
With historically competitive costs, expanding regional solar capacity, and increasingly competitive storage solutions , Central America has the conditions to accelerate the development of hybrid photovoltaic projects. The challenge now will be to transform that potential into investments through stable regulatory frameworks, more robust electrical grids, and mechanisms that facilitate financing for new projects.