| Work Detail |
The Colombia Solar for Popular Economies program seeks to reduce the cost of electricity for entrepreneurs and business owners from the lowest socioeconomic levels, enabling them to finance up to 60% of the photovoltaic installation or 20 million Colombian pesos (approximately $5,000). Colombia Solar for Popular Economies, a program led by the Ministry of Mines and Energy and the Non-Conventional Energy and Efficient Energy Management Fund (FENOGE), proposes that entrepreneurs and merchants in income strata 1, 2, and 3 access photovoltaic solar systems with an incentive of up to 60% or 20 million Colombian pesos (approximately $5,000). The main objective of the Colombia Solar for Popular Economies program is to alleviate the cost of electricity bills for small businesses and entrepreneurs. In this new phase, businesses across the country are offered incentives, allowing them to select the installation company and the financial institution to cover the remaining 40%, either through credit or their own resources. The programs focus is on socioeconomic strata 1, 2, and 3. In Colombia, socioeconomic strata are an official classification that determines the income level and living conditions of households. Stratum 1 corresponds to the low-low category, stratum 2 to low, and stratum 3 to low-middle. These groups include the lowest-income users and are beneficiaries of subsidies for public services such as electricity, water, and gas. The stratification is determined by the National Administrative Department of Statistics (DANE) and is used to target state aid and subsidies. The total program investment is 42 billion pesos (approximately US$10.5 million), distributed in two phases. The first phase, already implemented, enabled the installation of 100 solar photovoltaic systems in businesses in the Caribbean region , including stores, restaurants, and bakeries. In this phase, the financing was fully covered by the State. According to official data, this first phase of the program allowed beneficiaries to reduce their electricity bills by between 50% and 70%. The second phase, currently under development, is expanding nationwide and will benefit nearly a thousand additional businesses through a co-financing model. To qualify, businesses must be located in strata 1, 2, or 3 and carry out popular economy activities, either from residential units or commercial premises. Requirements include building ownership and health, standardized electrical grids, compliance with energy bill payments, a shadow study, and a structural analysis. Companies interested in implementing the systems must be legally incorporated in Colombia, comply with tax and social security obligations, and have experience installing grid-connected solar systems of at least 2 kWp. The program also allows beneficiaries to sell surplus energy generated back to the grid, which can provide additional income for small businesses. Furthermore, the participation of new partners, both public and private, is encouraged through inter-administrative agreements to contribute to the financial closing of the remaining 40% of the systems value. Registration, for both beneficiaries and implementers, can be done here . |
