Evolution of Solar Energy in Chile: Residential Opportunities in Arica and Parinacota

Abstract

Chile has set itself to achieve Greenhouse Gas emission neutrality, with at least 70% of electricity coming from renewable energy sources by 2050. To this end, institutional and regulatory frameworks have been improved, resulting in significant progress in medium and large-scale projects. However, solar energy production at residential level and its surplus injection to all distribution networks has been very limited. This paper analyzes the evolution of the regulatory energy policies in Chile in order to contrast it with an economic evaluation of residential projects. The analysis focuses on the city of Arica, one of the highest potential regions in terms of solar energy within the country. There, a particularly low penetration of residential solar energy usage has been observed. Based on the current situation, projections are made for Arica in 2050, through the identification of barriers and opportunities on a residential scale development. According to some recommendations, there is the need to design policies that take into account the particular characteristics of each region within the country.