According to the National Energy Plan 2015-2050, Panama aims to increase the use of renewable energy by 2050, setting a goal of a 15% increase in non-hydroelectric renewable energy capacity by 2030 and 30% by 2050 to reduce sector emissions by 11 million tons by 2030 and 60 million tons by 2050.

Given the technological level and the size of the investment to develop electricity generating projects with renewable resources, employment is boosted.

The concept of reliability in this business model is questionable since they cannot function at their maximum under any permanent weather conditions, such as storms, cloudy and rainy days.

A considerable investment is required since its implementation is recent and its massification has been gradual in order to lower costs, which is why it influences the return on investment.

The efficiency of solar power generation panels in cities with a high degree of air pollution, their performance is much lower.

As it is a recent technology, there is not enough information on proven use to estimate the useful life of solar panels, which is projected to be between 20 and 40 years.

During the production of solar panels, a large amount of greenhouse gases and toxic waste are emitted.

Large tracts of land to be used for this business model, which affects the availability for agricultural or livestock food activities.

One of the options for recycling solar panels is by thermal means, which affects the environment in a paradoxical way.

Photovoltaic electrical production will contribute to the non-pollution of the air for the benefit of people, as well as non-global warming by CO2.

On September 21, 2016 Panama ratified, accepted, approved, its adherence to the historic Paris agreement on climate change and established the creation of a Ministry, laws and the path of a National Strategic Plan 2015-2050.

Ministry of the Environment with governing functions to formulate, apply, plan, direct, coordinate, execute and evaluate the National Environmental Policy, applicable to all levels of government.

In November 2020, the Cabinet Council approved the strategic guidelines of the Energy Transition Agenda, a measure that seeks to encourage investment in the sector, improve competitiveness and bring electricity to the communities indicated in the Colmena Plan.

Financial incentives: Renewable energy projects maintain access to financing under normal conditions with local private banks, as well as management in international financial markets or with more favorable options with multilateral entities in the region.

Tax incentives: Exemptions from import tariffs for solar components, tax credits of up to 5% of the value of the investment and the use of the accelerated depreciation method for this technological infrastructure are maintained as an incentive.

General Environmental Law No. 41; which establishes the basic principles and standards for the protection and promotion of the sustainable use of natural resources. It also orders environmental management and integrates it with social and economic objectives.

National Secretariat of Energy; It is in charge of conducting the country's energy policy, within the current constitutional framework, to guarantee a sufficient, high-quality, economically viable and environmentally sustainable supply of energy resources.

National Authority of Public Services (ASEP); It is an autonomous regulatory entity that oversees the provision of water supply, sewerage, telecommunications, natural gas and electricity. Establishes rules, regulations, enforceable acts and their compliance.

Law 37 of June 10, 2013, is a regulation that establishes incentives for the construction, operation and maintenance of solar power plants or installations.

Capital or local private equity contribution, bank financing under normal conditions of local and international banks, foreign investment.

Ministry of the Environment, National Secretariat of Energy, Public Services Authority.