Frequently asked questions about solar in Panama

In 2026, a residential system in Panama typically costs $1,200 to $2,000 per installed kWp, depending on size, roof and equipment. A home using about 600 kWh a month needs roughly 5–6 kWp, an investment of about $7,000 to $12,000 without batteries. Large commercial projects cost less per kWp thanks to economies of scale. Use our calculator for an estimate based on your numbers.

Sources: La Prensa — 10 puntos clave sobre la energía solar (dic. 2024)

The Panamanian Solar Energy Chamber estimates an average payback of 4 to 5 years, and in practice it's usually between 4 and 7 years. It pays back faster the higher your consumption (tariffs above 300 kWh/month are $0.23–0.27 per kWh) and in high-irradiation areas such as Coclé, Azuero and Chiriquí. After that, the energy is practically free for the rest of a 25+ year lifespan.

Sources: La Prensa — Autoconsumo solar acelera su crecimiento (sep. 2025) · ENSA — Pliego tarifario sep–dic 2026

For residential customers (BTS tariff), from 1 September to 31 December 2026 a kWh costs, before subsidy: $0.176–0.192 between 11 and 300 kWh; $0.232–0.253 between 301 and 750 kWh; and $0.250–0.275 above 750 kWh, depending on the distributor (ENSA, EDEMET or EDECHI). There is also a fixed charge of $2.76–3.17 a month.

Sources: ENSA — Pliego tarifario sep–dic 2026 · Nexo — Pliegos tarifarios ENSA/EDEMET 2026–2030

Savings are usually smaller. In Panama, residential consumption below 300 kWh a month is subsidized by the Tariff Stabilization Fund (FET), and that tier has the lowest rate. Solar pays off most when you use more than 300 kWh, because each solar kWh replaces energy that costs $0.23 to $0.27.

Sources: ENSA — Pliego tarifario sep–dic 2026

Yes. Law 37 of 2013 (Art. 20) exempts solar panels, inverters, stationary batteries and accessories from import duty and ITBMS (sales tax), and Law 417 of 2023 added an exemption from the Selective Consumption Tax (ISC). Businesses that use the energy commercially can also apply accelerated depreciation.

Sources: Ley 37 de 2013, Art. 20 · La Prensa — Amplían incentivos fiscales (Ley 417 de 2023)

Each installed kWp produces 1,370 to 1,580 kWh a year in Panama, depending on the region: about 1,410 in Panama City, 1,455 in La Chorrera, 1,550 in Coclé and 1,572 in Chitré. A modern 550 W panel therefore generates about 60–70 kWh a month. Output is highest in the dry season (January–April) and lowest in June–July.

Sources: Global Solar Atlas (Solargis)

With net metering, your distributor installs a bidirectional meter at no cost. Each month the energy you export to the grid is subtracted from what you consume: if you use more, you pay only the difference plus the fixed charge; if you export more, the surplus is kept as a kWh credit. Under ASEP's self-consumption procedure (2016), the distributor only recognizes up to 25% of exported energy, so we design systems to cover up to 100% of your consumption without oversizing.

Sources: ASEP — Procedimiento para Autoconsumo (Res. AN 10206-Elec, 2016)

The process has four steps: 1) an electrical design approved by the Fire Department Safety Office and Municipal Engineering; 2) an application to the distributor, which replies within 15 business days with the Interconnection Agreement; 3) installation and tests, witnessed by a JTIA-licensed technician; and 4) written approval from the distributor. Solar Solution Savings handles the entire process for you.

Sources: ASEP — Procedimiento para Autoconsumo (Res. AN 10206-Elec, 2016)

Official deadlines add up to about 30 business days for systems up to 500 kW, and the Panamanian Solar Energy Chamber cites theoretical timelines of up to 45 business days. In practice it can take longer depending on the distributor's workload, so we start the paperwork in parallel with the design.

Sources: ASEP — Procedimiento para Autoconsumo (Res. AN 10206-Elec, 2016) · La Prensa — ASEP amplía el tope del autoconsumo (ene. 2026)

Panama has three distributors: ENSA serves Colón, Darién, Guna Yala and Panamá province east of the Canal; EDEMET (Naturgy) serves western Panama City, Panamá Oeste, Coclé, Herrera, Los Santos and Veraguas; and EDECHI (Naturgy) serves Chiriquí and Bocas del Toro. Your bill shows which one is yours.

Sources: ASEP — Procedimiento para Autoconsumo (Res. AN 10206-Elec, 2016)

Yes. ASEP sets a national self-consumption cap per concession zone. In January 2026 it temporarily raised it to 5% of energy and 16% of demand, valid until year-end or until the procedure is amended. As of January 2026 there were more than 7,000 self-consumption users and about 192 MW installed. It's worth starting your project soon.

Sources: La Prensa — ASEP amplía el tope del autoconsumo (ene. 2026)

A grid-tied system without batteries shuts down automatically during a blackout, for the safety of utility workers. To keep power during outages you need a hybrid system: a hybrid inverter plus batteries, which automatically power your critical circuits.

It depends on your area and how critical your supply is. According to ASEP data, Naturgy (EDEMET/EDECHI) missed quality standards from 2019 to 2025, with urban customers averaging 25.5 hours without power in 2025 against a 15-hour limit. For areas with frequent outages, businesses that can't stop, or properties without a grid connection, batteries are strongly recommended.

Sources: Nexo — Calidad de servicio Naturgy (ASEP, 2026)

An off-grid system runs without a grid connection: the panels charge a battery bank that powers the property day and night. It's the solution for farms, islands and rural areas. Solar Solution Savings has installed more than 40 off-grid systems across Panama.

Solar panels last 25 to 30 years, and most manufacturers guarantee more than 80% of rated power at 25 years. According to NREL field studies they lose about 0.5% of output per year on average. Inverters typically last 10 to 15 years.

Sources: NREL — Photovoltaic Degradation Rates

Yes. Panama lies outside the hurricane belt: the only tropical cyclone to make landfall was Martha in 1969. The main risks are heavy rain, humidity, lightning and, on the coast, salt air. That's why we use code-compliant anchored racking, surge protection and, in coastal areas, IEC 61701-certified modules and stainless hardware.

Sources: Huracán Martha (1969)

Yes, though less. In Panama City monthly output drops from about 139 kWh per kWp in March to about 103 in June. With net metering, dry-season credits help offset the rainy months. Rain also cleans the panels.

Sources: Global Solar Atlas (Solargis)

In Panama the optimal tilt is low, just 10° to 13°, because the country is close to the equator. Most tile, metal or concrete roofs work well, ideally with no shade between 9 a.m. and 3 p.m. If the roof isn't suitable, we can install a ground mount.

Sources: Global Solar Atlas (Solargis)

Solar Solution Savings, Inc is a Panamanian solar energy company with more than 5 years of experience, based in Panama City. It designs, installs and maintains residential, commercial and industrial PV systems, with more than 25 grid-tied plants and more than 40 off-grid systems nationwide.

We work nationwide. We have projects in Panama City, Panamá Oeste, Colón and Coclé, and we design systems for every province, including off-grid systems for rural areas and islands.

Yes. We provide preventive and corrective maintenance, fault diagnosis and production reviews for systems from any installer.