“Why would a factory invest in solar if the grid is reliable and electricity isn’t expensive?”

Meet Luis, plant manager of a century-old pharmaceutical and cosmetics manufacturer in Peru. Their facility consumes approximately 11.5 MWh per day. Local grid uptime is excellent, and the tariff hovers around USD 0.105–0.115/kWh – not cheap, but far from the crisis rates seen elsewhere in Latin America.

Yet Luis chose to install a 436 kW grid-tied solar system for the factory. Not because of blackouts or sky-high bills but because Peru’s tax law allows a 20% annual accelerated depreciation on photovoltaic equipment.

This fiscal policy has completely changed how returns on investment are calculated.

Project: Phase 1 (Operational)

System size (DC): 436 kWp

Daily generation: ~1,800 kWh

Factory daily consumption: 11,500 kWh

Remaining grid purchase: ~9,700 kWh/day

Self-consumption ratio ~15.7% (will grow with Phase 2)

⚡ The system is configured for full self-consumption – zero feed-in to grid.

The Real Hero: 20% Accelerated Depreciation

In Peru, PV equipment can be depreciated at 20% per year – meaning a 100% write-off in just 5 years.

What that means for a corporate taxpayer like Luis’s factory:

Each year, 20% of the total system cost is deducted from taxable income.

Corporate tax rate in Peru is ~29.5%.

So the effective tax saving = (System Cost × 20%) × 29.5% every year for 5 years.

This creates a significant positive cash flow in Years 1–5, even before counting electricity bill savings.

Let's run some example numbers:

Assume system cost ≈ $0.35/W (installed, Peru). Total = $152,600.

Annual depreciation deduction = $30,520.

Annual tax saving = $30,520 × 29.5% ≈ $9,000.

Over 5 years: $45,000 in tax savings alone.

Electricity savings (1,800 kWh/day × 365 × $0.11) ≈ $72,270/year.

Combine both → payback period drops dramatically (often under 3 years for Peruvian C&I clients).

Continuous Power Saving & Lower Operating Costs

The on-grid solar system reduces grid power purchase and cuts electricity expenses steadily year by year, making production costs more controllable and significantly enhancing corporate profitability.

Building a Green Brand Image

For pharmaceutical and cosmetics enterprises, green initiatives, environmental protection, and sustainability are core competitive advantages. Installing a solar system significantly enhances the company’s ESG(environmental, social, governance) performance, strengthens trust among consumers and partners, and supports brand premium positioning and global expansion.

System Configuration

All components are fully certified for Peru’s grid code and coastal climate (humidity, salt spray, moderate seismic).

What’s Next: Phase 2 – Using Every Last Rooftop Meter

The current system uses only about 20% of the factory’s total roof capacity. While Phase 1 does not cover the plant’s full power demand, it has already delivered attractive returns and clear financial benefits for Luis.

Impressed by the profitability, Luis has already asked us to design a new solar solution for expanding PV arrays to all remaining usable roof space – including areas with less sunlight exposure, which remain profitable under the same tax regime.

Expected Phase 2 addition: + 500 kWp, generating an estimated 2,000–2,100 kWh per day. That would raise the factory’s self‑consumption ratio to ~33–34%, further reducing grid dependence without any change to plant operations.

Conclusion

If you own or manage an industrial facility in Peru (or elsewhere in Latin America with similar tax incentives), don’t let “stable grid” or “moderate tariff” fool you.

Solar is no longer just an emergency backup or a hedge against high rates.

It’s a tax-efficient capital investment that starts generating positive returns from Year 1.

We specialize in on-grid and hybrid C&I solar with tax integration – from feasibility to commissioning to depreciation documentation support.

Contact us for a free 20-min analysis of your rooftop + tax savings potential.

Send us your latest electricity bill and roof plan – we’ll reply with a one-page ROI estimate including accelerated depreciation.