Argentina’s distributed generation (DG) sector is witnessing robust growth, fueled by recent electricity tariff adjustments and better project economics, according to Argentinean electrical engineer and PV specialist Martín Ponsá in an interview with pv magazine.
Ponsá noted that electricity tariffs, frozen in 2019, have seen subsequent increases that have reshaped the economic viability of photovoltaic projects. Coupled with historic lows in equipment prices—particularly for inverters and panels—and fierce competition in the labor market, project payback periods have been significantly shortened, dropping from 7 to 10 years previously to around 3 to 4 years currently.
Having entered the DG sector in 2019 following the implementation of Law 27,424, Ponsá recalled the early challenges, including a shortage of certified professionals and limited knowledge among utility companies like Edenor and Edesur. He has since specialized in the bureaucratic and technical management for user-generator authorizations, partnering closely with installers.
Ponsá has participated in nearly 400 user-generator authorizations, covering both residential and industrial installations totaling approximately 7 MW of cumulative capacity. Around 70% of these installations are residential, with initial growth concentrated in gated communities, while the industrial sector is now increasingly entering the market.
Highlighting the market’s evolution, Ponsá said registered user-generators surged from just 67 in 2019 to 4,253 by March 2026, with a total installed capacity of 143 MW. He emphasized that the actual figure is likely higher, as off-grid installations and those not formally connected to the grid are not included in official statistics, estimating over 40% of installations go unnoticed.
Regarding electricity distribution companies, Ponsá noted some still view DG as a threat, but stressed the sector offers new business opportunities, such as cooperatives and distributors developing their own solar farms to cut supply costs.
He also pointed out Argentina’s new tax incentives, including Decree 242, which supports SMEs’ investments in solar panels, energy storage and energy-efficient equipment, further aiding project amortization.
