Colombian Minister of Mines and Energy Edwin Palma has announced the establishment of the country’s first national company dedicated to solar panel production, with technical and financial cooperation from the Swedish government.

The ministry said the company will be based in Colombia and will aim to meet domestic demand for PV modules used in electrification and rooftop solar programs. The initiative forms part of the government’s strategy to expand the local solar supply chain and reduce reliance on imports.

The Ministry of Mines and Energy also said the government will finance up to 90% of the installation cost of solar systems for small businesses such as neighborhood stores and bakeries.

In earlier phases, the incentive covered 60% of costs or up to COP 20 million ($5,400) for low-income households. The program has already been implemented in the Caribbean region, where nearly 80 businesses installed solar systems under partial subsidies. The government now plans to expand the scheme nationwide.

Eligible businesses must belong to the informal economy, maintain up-to-date energy bills, and meet basic electrical and technical standards.

The Non-Conventional Energy and Efficient Energy Management Fund (FENOGE) funds the program, working with financial institutions to cover remaining costs when subsidies fall short of full system coverage.

Following the expansion, the initiative aims to support several hundred small businesses in multiple regions by installing rooftop solar systems on stores, bakeries, restaurants, and other local enterprises.

In October, the government announced a $1.84 billion investment to bring solar power to 1.3 million households under the Colombia Solar Program, which allocates funds between 2026 and 2030 to provide photovoltaic systems for lower-income families and gradually phase out traditional electricity subsidies.