Mexico is entering a new stage of photovoltaic expansion , marked by the return of large-scale projects, the consolidation of the commercial and industrial segment, and a growing demand for hybrid solutions that incorporate storage.
The new wave will also raise the bar for manufacturers. Developers are no longer just looking for more powerful modules, but for solutions that reduce CAPEX and OPEX , optimize transportation, provide reliable simulation tools, and guarantee technical support throughout the asset's lifecycle.
“ We believe there is a great opportunity in Mexico ,” said Luis Contreras , Managing Director of Latin America and Iberia at Yingli Solar, in an exclusive interview with Energía Estratégica during the Future Energy Summit (FES) Mexico 2026.
The executive identifies two major drivers of demand. On the one hand, the development of utility-scale power plants that could reach between 200 MW and 400 MW . On the other, the growth of commercial and industrial facilities, which could extend over a longer period.
“ We believe growth comes from hybridization and storage, and there is also a great opportunity in commercial and industrial sectors ,” Contreras said.
More than 13 GW operational and another large-scale portfolio on the way
The manufacturer's outlook coincides with a concrete reactivation of solar activity in Mexico. The country already has around 13 GW of installed photovoltaic capacity , while new awards and tenders are shaping a portfolio that could transform the market in the coming years.
The first call for bids aimed at private investment allocated 901 MW of solar power . This figure was further augmented by an additional 6,710 MW of photovoltaic capacity within the first round of the mixed-use scheme promoted in conjunction with the Federal Electricity Commission (CFE).
In total, this process selected 37 renewable energy projects totaling 7,411 MW , after receiving more than 200 proposals representing nearly 38 GW under evaluation . The volume of submissions demonstrates the interest of developers, but also anticipates increasing competition for permits, financing, equipment, and implementation capacity.
Furthermore, the Ministry of Energy plans to complete the allocation of an additional 4,595 MW of photovoltaic and concentrated solar power (CSP) capacity through ongoing tenders. Considering the 901 MW of private projects, the 6,710 MW of solar capacity under the mixed-use scheme, and the remaining capacity, Mexico will have over 12 GW of solar capacity already awarded or in the pipeline, with a target date of 2029 .
This scenario explains why manufacturers are preparing to serve power plants of a size that, in recent years, have not appeared as frequently in the Mexican market.
“ We are seeing projects above 200 MW and up to 400 MW in utility ,” the Yingli Solar executive stated.
The commercial and industrial segment presents a different dynamic. Unlike large plants, whose development depends on calls for proposals, permits, transmission capacity, and complex financial closings, self-consumption can advance through decentralized decisions by companies seeking to reduce their electricity costs.
Mexico ended 2025 with 5,189.71 MW of cumulative distributed generation and more than 600,000 interconnected installations. During that year alone, it added nearly 990 MW, while more than 99.5% of the power under this scheme corresponded to photovoltaic technology.
For Contreras, this feature offers an opportunity for greater continuity for the entire value chain.
“ When we talk about self-consumption and industrial installations, there is a market that can go further in the long term ,” the executive highlighted.
Higher power modules and solutions tailored to each project
The coexistence of large-scale projects and rooftop systems will modify product demand. In the utility market, customers prioritize large, high-power modules because of their ability to reduce the number of units, structures, connections, and labor hours required.
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This optimization can be applied to both the initial construction cost and operating expenses throughout the plant's lifespan. However, the requirements change when the equipment is installed on industrial rooftops. Weight, dimensions, handling, and working conditions limit the size of the modules that can be used.
“ For the commercial and industrial sectors, similar in terms of product size, but due to limitations in terms of work, especially when we go to rooftops, self-consumption on rooftops and so on, a panel that goes to 665 W or a 600 W panel would be the most in demand for us ,” explained Contreras.
The scale of the new portfolio will require improvements in logistics planning, container utilization, land transport, product availability, and coordination with construction schedules.
Yingli Solar also plans to strengthen the tools used to estimate asset performance. The goal is for the simulations presented during development to more closely approximate the actual behavior of the plant once it becomes operational.
“ Basically, we prepare ourselves by understanding and listening to the customer, production capacity, technological advancements, and cost improvements ,” Contreras listed.
This includes support before, during, and after construction. The manufacturer aims to be involved from the initial technology selection and preliminary design to addressing any issues and warranty claims.
The executive summarizes the strategy as the need to " accompany clients not only in the previous phases of the project, but also during construction and their service during the warranty period ."
Bankability, transmission and storage: the portfolio filters
To transform the announced megawatts into constructed power plants, it will be necessary to secure solid contracts, permits, connection infrastructure, solvent suppliers, and financial conditions compatible with the scale of the investments.
At this point, Contreras identifies bankability as one of the main filters for the new solar wave. “ Bankability is critical in the market. For projects to be bankable, the regulations must be sustainable and stable over time ,” the executive warned.
The stability of the rules will be crucial for banks, funds, and investors to assess expected income, regulatory risks, and the repayment capacity of each asset. The industry will need predictability for periods that could extend for two decades or more.
The electricity grid represents another key component. A portfolio exceeding 12 GW will require physical capacity to evacuate generation, manage variability, and transmit electricity to major consumption centers.
The manufacturer believes it is necessary to build new transmission infrastructure or adapt existing infrastructure. Without these interventions, some projects could face interconnection restrictions, delays in their operational dates, or limitations in delivering their full planned output.
Energy storage is emerging as a structural part of the solution. New Mexican tenders require projects to incorporate batteries equivalent to 30% of the plant's capacity, with a three-hour lifespan , and anticipate operational start-ups between 2027 and the first half of 2030.
This obligation modifies the technical and financial design of the projects. According to Contreras, Mexico has the opportunity to leverage the experience gained in other markets and avoid problems arising from renewable energy expansion that has not been accompanied by transmission capacity, flexibility, and stable regulations.
Technological and construction quality will be another condition for consolidating the new cycle. The pressure to reduce costs should not be transferred to equipment, engineering, or assembly processes that compromise future performance.
“ Quality not only at a technical level in the projects, but also in the execution ,” Contreras emphasized.
Therefore, the new market will demand manufacturers capable of demonstrating financial solvency, traceability, certifications, after-sales service and the ability to respond to projects of different scales.
Megaprojects of up to 400 MW offer an immediate opportunity for manufacturers. At the same time, the growth of the commercial and industrial sectors can sustain a more distributed and continuous demand.
In both markets, the trend is clear: customers will demand more power, lower costs, optimized logistics, reliable simulations, and long-term technical support. The ability to meet these demands will determine which suppliers will play a central role in Mexico's upcoming photovoltaic expansion.