Rapid Growth in Distributed Generation
Mexico has seen a significant surge in distributed generation (DG), with more than 558,000 interconnection requests filed by users by mid-2025. These requests represent a combined registered capacity of approximately 4.76 GW for power plants of 0.7 MW or less. This milestone reflects the growing adoption of decentralized power systems among households, commercial users, and small industrial facilities across the country.
Dominance of Small-Scale Systems and Net Metering
About 95% of these requests, totaling over 529,000 connections, are for distributed generation systems, signaling massive uptake at the residential and small commercial levels. Small- and medium-scale projects account for only 5% of requests with an accumulated capacity below 250 MW. Net metering is overwhelmingly popular, comprising more than 93% of DG requests and representing nearly 4.43 GW of capacity, while net billing and gross sales remain minor by comparison.
Regulatory Influences Driving Growth
Key regulatory changes have accelerated this expansion. The introduction of the “0.7 MW scheme” allows generation systems up to 0.7 MW to operate without needing a permit, facilitating participation by smaller players and keeping these systems outside the wholesale market. Additionally, the Mexican government raised the permit exemption threshold from 500 kW to 700 kW, expediting interconnection processes and encouraging investments in distributed generation.
Sustained Upward Trend
Mexico has been tracking DG data since 2007, and the trend has consistently shown strong growth. In the past five years alone, interconnection requests doubled, rising from about 273,000 in 2020 to over 558,000 in 2025, with an 80% increase in the requested capacity. This steady rise confirms distributed generation's strategic role in Mexico’s energy transition towards more decentralized renewable energy sources.
"More than half a million interconnection requests have been filed by users adopting decentralized power systems in Mexico… Net metering represents more than 93% of all DG requests, with 521,618 registered systems totaling 4,429.90 MW."
— Comisión Nacional de Energía, Mexico
Mexico's decentralized power market is rapidly expanding, driven by regulatory support and overwhelming adoption of net metering, reshaping the energy landscape with over 4.7 GW of distributed generation capacity requested by 2025.
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