South America Bi-facial Solar Market Outlook, 2031

Market Drivers

• Distributed Generation Expansion: Brazil's distributed solar generation has transformed the country's energy landscape, growing from less than 1 GW in 2018 to 40 GW by June 2025, accounting for 43% of all electricity capacity additions over that period according to ANEEL data. Home and building owners installed more than 3.7 million renewable distributed generation systems as of June 2025, with solar photovoltaic representing 99% of the country's total distributed generation capacity. The Brazilian Association of Distributed Generation (ABGD) forecasts 15% annual growth in 2026 to reach 50 GW. This distributed generation boom creates a massive addressable market for bifacial technology in commercial and industrial rooftop applications across South America.
• Exceptional Solar Irradiance and Desert Environments: South America possesses some of the world's highest solar irradiation levels, with Chile's Atacama Desert delivering exceptional capacity factors and Brazil's solar LCOE dropping to US$37/MWh in 2025. Bifacial modules deliver superior performance in these high-albedo environments, capturing reflected light from desert surfaces and delivering 5-15% higher energy yields. Chile's solar energy accounted for 31.1% of national generation in 2025, while Colombia's solar generation grew over 1,650% between 2022 and 2025. This exceptional resource base makes bifacial technology economically compelling across the region.

Market Challenges

• Grid Connection Constraints and Curtailment: South America's bifacial solar market confronts significant grid infrastructure challenges, with Brazil experiencing 15-20% curtailment in early 2025 discouraging new projects. The country revoked concession permits for 509 solar and wind power plants totaling approximately 22 GW in 2025 following developers' requests for non-viability cancellation. Brazil's grid capacity constraints, transmission bottlenecks, and regulatory shifts are slowing momentum. To address this, Brazil enacted Law No. 15,269/2025 to establish a regulatory framework for energy storage and compensate generators for curtailment, with a maiden battery storage auction planned for April 2026.
• Financing Costs and Currency Volatility: South American solar markets face significant financing challenges, with interest rates of 8-15% across emerging markets and currency volatility affecting project economics. Brazil's regulatory changes, including the phase-out of net metering benefits and rising import costs, are reducing economic incentives for new installations. The combination of high financing costs, currency fluctuations, and policy uncertainty creates substantial barriers for bifacial project development, particularly in smaller markets where project scale cannot absorb these additional costs.

Market Trends

• Technology Transition to N-Type TOPCon Bifacial Modules: South America's bifacial solar market is witnessing a decisive technology transition toward n-type TOPCon bifacial modules, with the technology emerging as the dominant next-generation architecture across the region. Brazil is producing TOPCon N-Type bifacial glass-glass modules featuring the lowest CO₂ footprint in the world. Bifacial TOPCon modules are expected to capture over 60% of new utility-scale installations by 2030, displacing legacy PERC technology due to superior energy yield in South America's high-irradiation climate. JA Solar's validation of bifacial technology in tropical conditions through its Minas Gerais project has established a foundation for N-type TOPCon across the region.
• Floating Solar and Innovative Applications: South America is witnessing innovative bifacial applications including floating solar installations on hydroelectric reservoirs. The Itaipu Binacional hydroelectric dam, shared by Brazil and Paraguay, completed installation of 1,584 bifacial solar panels on 4,199 floats for a floating solar plant exceeding 1,105 kW of power. This trend leverages existing hydroelectric infrastructure, reducing land-use conflicts while benefiting from water cooling that enhances panel efficiency. As South America adds an estimated 160 GW of solar capacity between 2025 and 2034, innovative applications like floating solar and agrivoltaics will create new deployment opportunities for bifacial technology.