Ensenada has installed more solar energy systems than any other municipality in Baja California, with 3,470 residential and commercial panels now connected to the grid. The city accounts for roughly one-third of all solar installations statewide, a concentration driven by high electricity rates, abundant sunshine, and a growing population of environmentally conscious homeowners.
Baja California Has 10,735 Solar Installations Across Five Municipalities
Across the state, 10,735 solar panel systems are now operational. Ensenada leads with 3,470, followed by Mexicali with 3,307 and Tijuana with 2,741. Tecate has 738 installations, while Playas de Rosarito trails with 479. The figures come from CFE, Mexico’s federal electric utility, which tracks grid-connected solar systems through its interconnection program.
The numbers reflect a sharp increase from just a few years ago. Solar adoption in Baja California accelerated after CFE raised residential electricity rates under its tiered DAC (Doméstica de Alto Consumo) pricing structure. Households that exceed a monthly consumption threshold, which varies by climate zone, get bumped into the DAC tier. In that bracket, rates can triple or quadruple compared to subsidized tiers.
Mexicali, despite its larger population, sits behind Ensenada in total installations. One reason: Mexicali residents have historically received larger federal subsidies on electricity because of the city’s extreme summer heat, which can exceed 120°F (49°C). Those subsidies reduce the financial pressure to switch to solar. Ensenada’s milder climate means smaller subsidies and higher effective bills for heavy users, making solar payback periods shorter.
How Net Metering Works Through CFE
Solar installations in Mexico operate under a net metering framework managed by CFE. Homeowners generate electricity during the day, feed surplus power back into the grid, and receive credits on their bill. The system does not pay cash for excess generation. Instead, credits offset nighttime and cloudy-day consumption over a 12-month billing cycle.
To connect a solar system to the grid, homeowners must file an interconnection contract with CFE. The process typically takes 30 to 60 days and requires a certified installer. Systems must meet specifications set by Mexico’s Energy Regulatory Commission (CRE). Installations without an interconnection contract are technically illegal and can result in fines or disconnection.
The financial math is straightforward for many households. A typical 4-kilowatt residential system in Ensenada costs between 80,000 and 120,000 pesos ($4,600 to $6,900 USD) before any incentives. Households in the DAC tier can recover that investment in three to five years through reduced electricity bills. Panel warranties typically run 25 years.
Ensenada’s Climate and Demographics Favor Solar Adoption
Ensenada receives an average of 260 sunny days per year, according to Mexico’s National Meteorological Service. The coastal city’s moderate temperatures also help solar panels operate efficiently. Panels lose efficiency in extreme heat, which gives Ensenada an advantage over Mexicali, where summer temperatures degrade panel output by 10% to 15%.
The city’s demographics play a role as well. Ensenada has a significant population of foreign residents and retirees, many of whom own homes in developments along the coast and in the wine country east of the city toward the Valle de Guadalupe. Property owners in these areas tend to have higher electricity consumption due to larger homes, pools, and electric water heaters. That consumption pushes them into the DAC tier faster.
Local solar installers in Ensenada report that demand has grown steadily since 2020. Several companies now operate showrooms along the Transpeninsular Highway corridor between Ensenada and Rosarito. Competition has driven installation prices down roughly 20% over the past three years.
Nationally, Mexico had over 300,000 distributed solar installations by the end of 2024, according to industry group ASOLMEX (the Mexican Solar Energy Association). Baja California’s 10,735 systems represent a small share of that total, but the state’s per-capita adoption rate ranks among the highest in the country.
CFE is scheduled to update its residential rate structure in the second half of 2025, a change that could further affect the economics of rooftop solar in Baja California. The data on municipal installations was first reported by Cadena Noticias.