New report reveals homeowners embracing money-saving new property trend: 'It is a cultural change'

In Latin America, more and more homeowners are taking control of their electricity by generating their own power, mostly through solar energy.

The shift has been huge over the last few years. Between 2017 and 2023, the region's capacity for distributed energy grew from 1 gigawatt to 31.8 gigawatts, with Brazil leading the way and making up 83% of that capacity. According to Dialogue Earth, countries such as Mexico, Puerto Rico, and Chile are also seeing big jumps in solar adoption.

"It is a cultural change after decades of an energy sector operated in a centralized manner by large players," Onred co-founder Ignacio Romero told Dialogue Earth.

In Brazil, Mexico, and Puerto Rico, governments have passed laws making it easier for people to install solar panels on their homes and participate in the shift to renewable energy. These laws also let homeowners sell any extra energy back to the grid, which helps cover any costs that go into it.

According to the report, 15 countries in Latin America now have policies in place to support distributed energy, making it easier for people to start using solar power. 

Rosilena Lindo Riggs, Panama's former Energy Secretary and current lobbyist, sang the praises of distributed power. 

"It is quick to install, the maintenance cost is quite low, it is a scalable technology, and it gives stability to the electricity system. It is a technology created by and for people," she said. 

These regulatory changes have spurred a wave of investment in small-scale renewable projects, which gives space for homeowners to access low-interest loans and tax credits for solar installations. This is particularly important for making solar energy affordable in regions where upfront costs could otherwise be a barrier.

Going solar helps to save money, of course, but it also greatly helps reduce reliance on dirty energy.

In rural areas of Brazil and Mexico, where access to reliable electricity was once scarce, distributed energy offers a more stable and affordable option. This is especially helpful in places with high electricity costs or unreliable power grids.

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According to a report from Reuters, the World Bank pointed out that while big renewable energy projects are still important, distributed energy provides a more flexible and cost-effective solution for homes that need consistent power. Homeowners can store excess energy for cloudy days or power outages with the improved battery storage technology, which adds another layer of energy security.

More homeowners are switching to solar each year, and platforms such as EnergySage can help guide them through the process. As more countries support this shift and make it easier for people to get on board with solar energy or community solar, distributed energy will continue to become an important part of Latin America's energy future, especially as the region strives to meet international climate goals and reduce carbon pollution.

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