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NodoSolar

FAQ

Frequently asked questions about solar energy

Direct answers on the costs, savings, incentives, financing and regulation of solar energy in Colombia, gathered in one place.

General

How much does it cost to install solar panels in Colombia?

The cost depends on the size of the system (measured in kWp), the type of roof and the city. As a market reference, a residential system usually falls between 8 and 25 million Colombian pesos; a commercial or industrial project is quoted by installed capacity. The reliable way to find out is to compare several quotes for the same consumption: that is exactly what NodoSolar helps you do, free of charge.

How much can I save on my electricity bill?

Savings depend on your consumption, the solar radiation in your region and your grid operator's tariff. A well-sized system covers a significant share of daytime consumption, and net metering (CREG Resolution 174 of 2021) lets you offset the surplus you export to the grid. Before requesting quotes, work out an estimate with your bill to hand.

What tax benefits does solar energy have in Colombia?

Laws 1715 of 2014 and 2099 of 2021 grant incentives to non-conventional renewable energy projects: a deduction of up to 50% of the investment against income tax, VAT exclusion, tariff exemption and accelerated depreciation. Accessing them requires certification of the project with UPME.

Do solar panels work on cloudy days?

Yes, though with lower output. Because of its equatorial location, Colombia has no seasons and solar radiation is relatively stable throughout the year, which makes annual generation more predictable than in countries with marked winters.

Do I need batteries?

Not necessarily. A grid-connected (on-grid) system with net metering uses the grid as backup and is usually the most cost-effective option. Batteries make sense if you suffer frequent power cuts or if your installation is in an area without a reliable grid, as is the case on many farms.

How long does a solar panel system last?

Panels usually come with performance warranties of 25 years or more and keep generating after that. The inverter, which converts the energy for your home or business, has a typical service life of 10 to 15 years and is usually the only significant replacement during the life of the system.

What is NodoSolar and how much does it cost to use?

NodoSolar is an independent platform that connects people and businesses with solar installers in Colombia. You describe your project once, and you receive comparable quotes from verified installers. The service is free and with no obligation for anyone looking to install.

How long does a solar installation take?

The physical installation of a residential system normally takes a few days. The full process — quote, contract, installation and legalization with the grid operator — usually takes several weeks, depending on the operator and the size of the project.

Pricing

Why don't you publish an exact price?

Because a real price depends on your consumption, your roof, the city and the equipment chosen. Any 'firm' figure given without looking at your case is marketing, not a quote. We publish reference ranges to give you context and we help you obtain real, comparable quotes.

What does the price of an installation normally include?

It usually includes the panels, the inverter, the mounting structure, the wiring, the design, the installation, the commissioning and the processing of the connection with the grid operator. Batteries, structural reinforcement and subsequent maintenance are normally quoted separately.

How do I know whether a quote is expensive or cheap?

Compare the price per watt (COP per kWp), not just the total, and check that the proposals include the same things: brand and warranty of the equipment, scope of the installation and paperwork. A very low offer may be cutting corners on equipment quality or on the legalization process.

Does the price include legalization with the grid operator?

It should. Always ask for the proposal to state whether it includes processing the connection and net metering with your operator. It is a mandatory step and leaving it out is a common cause of cost surprises.

Why does the cost per kWp fall on larger systems?

Because part of the budget does not depend on size: the design, the calculation report, mobilising the crew, the commissioning and the legalization cost almost the same for 2 kWp as for 8 kWp. Spread across more capacity, the unit cost falls.

How much do batteries add to the project?

Enough to change the decision. Storage is the line item that most alters a residential budget and it generates no extra saving compared with a grid-connected system: its value lies in having power during an outage. It is worth assessing as a separate purchase, with its own justification.

Do tax incentives reduce the price the installer charges me?

Not directly. The benefits of Laws 1715 of 2014 and 2099 of 2021 — income tax deduction, VAT exclusion, accelerated depreciation — apply to a project certified with UPME and their effect depends on your tax situation. A household that does not file income tax does not benefit from them. Be wary of a proposal that presents them as already discounted from the price.

Is it worth waiting for prices to fall further?

Equipment costs have fallen steadily for years, but the energy tariff you pay while you wait also rises. Postponing the decision saves on the equipment and costs on the bill; which weighs more depends on your consumption. What is worth avoiding is buying in a rush because of an offer with an artificial deadline.

Does a more expensive system produce more energy?

Not necessarily. Two systems of the same capacity on the same roof produce practically the same, whatever the price. What the premium on high-end equipment buys is lower degradation, better warranties and manufacturer backing over twenty-five years: risk, not output.

Incentives and regulation

Can anyone access the Law 1715 incentives?

The benefits apply to non-conventional renewable energy projects certified with UPME. In practice they are used mostly by companies and income tax filers with enough investment; a household can benefit from the VAT exclusion on the equipment, but the income tax deduction and accelerated depreciation only make sense for someone filing income tax with a taxable base.

What is the special income tax deduction?

It is a benefit that allows part of the project investment to be deducted from net taxable income, spread over several years and subject to the caps set by the regulation. It reduces the tax payable and, with it, shortens the payback on the investment.

Do I need to go to UPME in person?

The application is filed with UPME following the procedure in Decreto 829 de 2020. Most serious installers support or handle this process as part of their service; confirm that it is included in the proposal.

Does the VAT exclusion apply to an installation at my home?

The VAT exclusion is provided for equipment, components and services intended for certified renewable generation projects. The specific scope for a household depends on the project's certification and on the regulation in force; it is worth checking with your installer and your tax adviser.

Financing

Which financing option is the most convenient?

It depends on your profile. If you have the capital, paying cash gives the best return because you avoid the financing cost and capture the incentives. If you prefer to spread the payment, compare the total financing cost (not just the instalment) across consumer loans, green loans and, for businesses, leasing or a PPA.

Can I start saving while I repay the loan?

Yes. If the monthly loan instalment is lower than the saving the system generates on your bill, the project can be cash-flow positive from the start. That is precisely the analysis worth doing before signing.

With leasing or a PPA, who receives the tax benefits?

Normally the owner of the asset. In a lease it is usually the financial institution until the purchase option; in a PPA it is the operator. So if the Law 1715 incentives are part of your decision, make it explicit in the contract.

Are there green credit lines in Colombia?

Yes. Development banks (such as Bancóldex or Findeter) channel credit lines for sustainable investment through commercial banks, and several banks offer green loan products. Terms and availability change, so it is worth checking them at the moment you decide.

Sources: Ley 1715 de 2014 (Renewable Energy Law) (opens in a new tab) · Ley 2099 de 2021 (Energy Transition Law) (opens in a new tab) · Decreto 829 de 2020 (tax incentives decree) (opens in a new tab) · Resolución CREG 174 de 2021 (net metering regulation) (opens in a new tab) · UPME (opens in a new tab)

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