With Panama’s abundant sunshine and commitment to sustainable energy, installing solar panels has become an increasingly popular choice among the nation’s real estate owners. The country enjoys a tropical climate with high solar isolation, which makes it ideal for solar energy generation. This guide will provide a comprehensive tour of how to set up a solar system in Panama, from understanding its benefits to the step-by-step (DIY) installation process.
What are solar panels?
Solar panels, also known as photovoltaic (PV) panels, convert sunlight into electricity. They are composed of numerous solar cells made from semiconductor materials like silicon. When sunlight hits these cells, it excites electrons, creating an electric current that can power Panama homes. Moreover, with a new 48V battery and large inverters, you can also power your air conditioning, pool pumps, and refrigerator. How amazing is that?
Three types of solar inverter systems
We can differentiate between three types of solar inverter systems:
- On-Grid. Sells excess power back to the power company, lowering your electric bill. However, it relies on the grid, which is often unreliable in Panama, and requires permits and architectural plans for a bidirectional meter. When the grid goes down, so does your power.
- Off-Grid. Powers your home only during daylight hours and requires batteries for nighttime power. It’s ideal for rural areas and doesn’t need permits.
- Prioritizes power from the battery, solar, and grid. It’s the best option for maintaining power during grid outages while lowering your electric bill. No permits are needed.
Consider additional solar lighting solutions
While solar panels illuminate your Panama home, solar poles can light up your neighborhood, so we recommend considering them as well. They operate off the grid and don’t incur any electricity costs. Engoplanet.com, a company specializing in creating high-quality solar street light solutions, offers a chance to enhance your community’s lighting. These solar poles are very easy to install and can withstand even harsh weather conditions.
How to set up a solar system in Panama
While solar panels for homeowners in Panama can be pricey, the valuable tax incentives make them a worthwhile investment. Let’s expand on how to set up a solar system in Panama.
Obtaining legal permits and approvals (only if you’re opting for on-grid inverter systems)
Before installing solar panels, obtaining the necessary permits and approvals from local authorities is essential. This process typically involves consulting with the local municipality to verify specific requirements and regulations for solar panel installations in your area. Then, you must apply for a permit by submitting the required documentation, which includes site plans, electrical schematics, and details about the solar panel system. Finally, schedule inspections to ensure compliance with local building codes and safety standards.
Cut costs on tax incentives
Panama’s Law 417, effective in 2024, exempts everyone from importation and sales taxes on solar products, including batteries, to boost solar power adoption. This update to Law 37 of 2013 also extends tax exemptions to constructing, operating, and maintaining solar power plants. By cutting these costs, the law makes solar energy more affordable and accessible. In this manner, investment in renewable energy and promoting environmental sustainability is highly encouraged.
Buying the equipment
You can buy solar equipment tax-free from local dealers in Panama. However, their stock might be a bit outdated. Purchasing directly from reputable solar companies on Alibaba or AliExpress is a better option. Shipping takes about three months, but you save around 50% and avoid importation and sales taxes with a simple application.
In addition, Panama’s grid system operates on a split-phase setup, similar to that in the United States. When ordering your inverter, ensure it is compatible with this system, as different versions are available. This compatibility ensures your solar system functions effectively with Panama’s electrical infrastructure.
Lastly, to determine the size of your solar system, check your electric bill for your monthly kWh usage. Divide this by 30 to find your daily kWh usage. Plan for about 35% of this daily usage in solar panel wattage and inverters, and allocate the remaining 65% for battery capacity. Opt for lithium-ion LiFePO4 batteries, which can last up to 10 years without replacement, unlike lead or gel batteries, which typically last only about two years in Panama’s climate.
Choosing between DIY and contractors for installation
Deciding whether to install solar panels yourself or hire a professional contractor is critical. Both options have their advantages and challenges.
Opting for experienced contractors
When considering non-DIY solar panel installation in Panama, start by researching reputable contractors with relevant experience in the field. Obtain multiple quotes to compare prices, services, and warranties different contractors offer. To ensure the reliability and quality of the work, check references and read online reviews from previous clients. In addition, verify that the contractor is certified by relevant authorities and follows industry standards for solar panel installations. These steps will help you find a trustworthy and competent contractor, ensuring a smooth and successful installation process for your solar panel system.
DIY: step-by-step installation guide
Here, we’ll show you how to install solar panels yourself in five steps.
Set up safety measures
Safety first! Before you start, set up scaffolding to ensure a stable platform for working on the roof. This structure is essential for your safety and usually takes a day to assemble. If you install the panels on a ground-mounted system, alternative safety measures may be quicker and simpler.
Install the mounting system
Install the mounting system that will secure the solar panels. Lift roof tiles to attach the mounts to the rafters. Ensure the mounts are tilted between 18 and 36 degrees to optimize sunlight exposure. Proper alignment is crucial for maximizing the efficiency of your solar panels.
Mount and secure the solar panels
Carefully place the solar panels onto the mounting structure. Position the panels to receive the maximum sunlight and secure them by tightening all bolts and fasteners. Double-check that each panel is firmly in place to prevent any issues during operation.
Handle the electrical connections
Set up the electrical wiring using MC4 connectors, which are compatible with most solar panels. Even though many panels come pre-wired, it’s advisable to have a professional electrician handle this step to ensure safety and compliance with electrical codes. Always switch off the household electricity before working on any wiring. Install the solar inverter near the main electrical panel in a cool, shaded location to convert the DC electricity to AC electricity for household use.
Test and monitor the system
Switch the household power back on and test the solar panel system. Ensure all components are functioning correctly and the system produces energy as expected. Regular monitoring and maintenance will help sustain optimal performance. Consider adding a solar battery to store excess energy for continuous power supply during cloudy days or nighttime.
One last tip
As you might know, electricity is very expensive in Panama (around 31 cents per kilowatt-hour). That prompted many to opt for solar panels. However, it’s also wise to use LED bulbs, turn off lights when not in use, and avoid running the air conditioner at its lowest temperature to save energy and costs. These practices support Panama’s goal as a net carbon-negative country.
Conclusion
In conclusion, Panama’s sunny climate, one of the main reasons many people move here, makes it perfect for solar energy. Solar panels for homeowners in Panama can save money, provide energy independence, and help the environment. So, they are clearly worth it. Just follow the steps in this guide on how to set up a solar system in Panama and chip in for a better future.