La Caucana Solar Farm - Participation Property in Colombia | Circular Urban
La Caucana Solar Farm
La Pintada, Colombia
Total project value*
$1.441.435
US Dollars
Invest from
US Dollars
Approx. Profitability (Effective Annual)
19.7% - 24%
About the project
1.48 MWp solar photovoltaic project located in La Pintada, Antioquia, Colombia (5.75° N / 75.62° W — 588 m.a.s.l.). Status: Ready to Build — 100% structured, only capital needed to start immediate construction.
Market opportunity
- Colombia projects sustained energy demand growth of 3–4% annually
- Spot price baseline: COP $308/kWh (2026) → COP $626/kWh (2050)
- Solar PPAs from COP $350/kWh — sustained margin over 25 years
- Country target: 6 GW installed solar capacity by 2030 (UPME/MinMinas)
Construction Timeline
From financial close to start of revenue generation.
All pre-construction milestones are completed: grid connection viability confirmed by EPM, engineering and layout validated by ERCO Energía, technical studies delivered, land analysis verified, and 25-year financial model calculated. The project only needs capital to begin construction. Once funded, the estimated timeline from financial close to commercial operation is approximately 8 months.
Financial Close
Month 0–1Contract signing, SPV incorporation, capital disbursement. Equity and/or leasing structuring.
Permits & Procedures
Month 1–3Formal connection request to EPM, UPME registration, environmental and municipal procedures.
Equipment Procurement
Month 2–4Acquisition of Jinko Solar panels, Huawei inverters, transformer, structures and wiring.
Construction & Installation
Month 3–7Civil works, structure assembly, module installation, DC/AC wiring, substation.
Testing & Commissioning
Month 7–8System testing, EPM connection protocol, installation certification.
Commercial Operation
Month 8+Start of grid injection and revenue generation. O&M contract activated.
Technical Specifications
The project uses Tier 1 technology: Jinko Solar JKM725N 725 Wp panels — one of the world's largest and most reliable manufacturers — and Huawei inverters, with 25-year linear production warranty, 12-year panel factory warranty, and 10-year inverter warranty. Projected degradation is just 0.4% per year, meaning the park still operates at 90% of its original capacity after 25 years. The design was developed by ERCO Energía SAS and validated with PVsyst V8.0.15, the world's leading photovoltaic simulation software, using SolarGIS satellite meteorological data.
DC Capacity
1,399 kWp
AC Capacity
990 kWac
Solar Modules
1,930 units — Jinko Solar JKM725N 725 Wp
Inverters
5 units Huawei (330 / 50 / 40 kW)
Module Area
5,995 m²
Total Land
27 Ha
Grid Connection
13.2 kV — 505-13 Poblanco-Tunez
Tilt Angle
10°
Orientation
North
Elevation
588 m.a.s.l.
Coordinates
5.75° N / 75.62° W
Energy Production
Simulation validated with PVsyst V8.0.15 — meteorological data SolarGIS. Stable production year-round thanks to equatorial location.
The project is located in La Pintada, a municipality in southwestern Antioquia on the banks of the Cauca River, in an area with some of the most stable solar irradiation in the country thanks to its equatorial location at 588 meters above sea level. There are no seasons or winters that halt production. The sun shines every month of the year with an interannual variability of just 5.3%, making energy production predictable and reliable — exactly what a long-term cash flow model needs. Once operational, the park will inject approximately 2,440 MWh per year into the grid — enough to supply over 800 Colombian households.
Annual Production (P50)
Specific Production
Performance Ratio
Capacity Factor
Monthly Production (MWh injected to grid)
Probabilistic Analysis
2,440 MWh
Expected production (50% probability)
2,352 MWh
Conservative scenario (75% probability)
2,273 MWh
Very conservative scenario (90% probability)
Market Opportunity
Colombia actively drives the energy transition with clear incentives for distributed solar generation.
Colombia is in the midst of a full energy transition. The country's historic dependence on hydro generation makes it vulnerable to El Niño and climate variability. The electrical grid needs diversification, and solar energy is the government's strategic bet for the next 25 years. UPME and the Ministry of Mines project 6 GW of installed solar capacity by 2030, while energy demand grows at a sustained 3–4% annually.
Demand Growth
Colombia projects sustained energy demand growth of 3-4% annually. The electrical grid requires urgent diversification from hydro dependency and El Niño effects.
Price Trends
Spot price projected from $250 COP/kWh (2026) to $766 COP/kWh (2050). Solar PPAs offer competitive prices from $320 COP/kWh, creating sustained 25-year margin.
FNCER Incentives
Law 1715/2014 and Law 2099/2021 grant: 50% CAPEX deduction on income, 3-year accelerated depreciation, VAT exclusion on equipment, and import tariff exemption.
$250
COP/kWh
Spot Price 2026
$320
COP/kWh
PPA Base 2026
$447
COP/kWh
Avg Levelized Tariff
$766
COP/kWh
Spot Projection 2050
How does your investment in La Caucana Solar Farm work?
La Caucana Solar Farm operates through a dedicated corporate vehicle (SPV structured as SAS), which means that you receive a legal contract that certifies your participation as a partner.
The process is simple and transparent:
Review all the project information
Complete your identity verification
Complete the investment process
Sign and receive your participation contract
Daily operations are managed by Circular Urban (experience, community, and marketing) and the operator (energy management: production monitoring, preventive maintenance, 24/7 technical support, energy marketing).
You invest without having to manage anything.
Location
Vereda La Pintada, Santa Barbara, Antioquia, Colombia · La Pintada, Antioquia, Colombia
Project Team
An experienced team supports the technical execution and financial structuring of the project.
The project is backed by two specialized entities with proven experience. The constructor and operator brings a track record in Antioquia with industrial-scale solar installations, while the financial structurer ensures regulatory compliance, transparent governance, and accessible participation through a fractional model.
Operator & Constructor
Solved Ingeniería
Colombian engineering company specialized in self-generation and solar photovoltaic projects for industries and large consumers.
Design & Simulation
PVsyst V8 — leading PV software. Validated with NASA data for maximum performance by location.
Guarantees
25 years linear production · 12 years panels (manufacturing defects) · 10 years inverters
Track Record
Projects executed in Antioquia: Copacabana, La Ceja, Guarne. Real-time online monitoring.
Responsibility
In charge of EPC (engineering, procurement, construction) and O&M (operation and maintenance for 25 years).
Associated Brands
Financial Structurer
Circular Urban
Colombian investment platform for high-impact real assets, democratizing access to energy and urban infrastructure projects.
SPV Structuring
Incorporation and administration of the SPV (SAS) for the project. Asset separation and clear corporate governance.
Private Capital Channel
Equity capture through structured private offering. Access to qualified investors under Colombian regulations.
Integral Due Diligence
Technical (PVsyst), financial (25-year model) and legal (Law 1715, CREG, UPME) validation. Fully documented.
Fractional Model
Entry from $300K COP. Different share classes: economic (investors) and management (operator).
Regulatory Alignment
Structure compatible with Law 1258/2008 (SAS), Decree 1357/2018 and current FNCER regulations.
Financial Models
Both scenarios are profitable. The equity model offers security; the leveraged model maximizes returns.
The generated energy is sold through PPA (Power Purchase Agreement) contracts and/or at spot prices, with a nominal LCOE of $230 COP/kWh — well below the average market tariff of $447 COP/kWh. That $217 difference per kWh produced is the source of the cash flow distributed among project participants. Two financial models are presented: one with own resources and one with financing, both profitable from the first year of operation.
Model A — Own Resources
Direct investment without financial leverage — solid return with lower structural risk.
22.2%
IRR
3.5
Payback
362%
ROI
Model B — With Financing
Leveraged structure that maximizes IRR and ROI with reduced equity.
32%
IRR
2.2
Payback
762%
ROI
Debt Structure
Why leverage?
With only 35% of equity ($1.5 B), the investor achieves an IRR of 32% and recovers the investment in 2.2 years, keeping 100% of remaining cash flows during the 25-year useful life.
Tax Benefits — Law 1715
Colombian regulations offer significant incentives that substantially improve project returns.
Colombia has one of the most comprehensive incentive frameworks in the region for renewable energy (FNCER) projects. These benefits substantially reduce the real cost of the project and improve returns for participants, making the investment significantly more attractive than conventional alternatives.
50%
Special Deduction 50% of CAPEX
Deductible from net taxable income during the first years of operation. Subject to annual cap of 50% of net income.
$670 MM COP
3years
Accelerated Depreciation
Fiscal depreciation in 3 years vs. 20 years standard. Generates $447 MM COP annual tax shield for 3 years.
$447 MM COP
$488 MM
VAT Exclusion
VAT paid on FNCER equipment acquisition is recoverable in the first year of operation.
$488 MM COP
0%
Import Tariff Exemption
Solar equipment imported for FNCER projects is exempt from import tariffs.
Regulatory Framework
The project operates within a mature and favorable regulatory framework for solar generation in Colombia.
The project operates under a robust and well-established legal framework that provides long-term certainty for renewable energy investments. Colombia leads the region in legal security for FNCER projects, with clear incentives, simplified connection procedures, and explicit government targets for solar capacity expansion.
Law 1715 of 2014
2014Tax incentives for FNCER: 50% CAPEX deduction, accelerated depreciation, VAT exclusion, tariff exemption.
Law 2099 of 2021
2021Strengthens energy transition. Establishes renewable participation targets and simplifies connection procedures.
Decree 2236 of 2023
2023Regulates distributed generation and self-generation. Defines connection and surplus commercialization conditions.
CREG Resolutions
Define remuneration rules for AGPE and DG, surplus tariffs and technical connection conditions.
Law 2294 of 2023
2023National Development Plan. Prioritizes energy communities and distributed generation as strategic axis.
UPME / MinMinas
The energy roadmap projects 6 GW of installed solar capacity by 2030. Strategic country requirement.
Simulate your investment
How much do you want to invest in this project?
With your investment you can acquire 1 participation
Price per participation: $50 USD
Annual
Return projected annually from sales between 19.7% and 24%.
Estimated income between $10 and $12 US dollars per year.
Return on investment
Have questions about our La Caucana Solar Farm project?
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Chat with usRisks & Mitigants
Low risk profile — most pre-construction risks have already been mitigated.
This project has a low overall risk profile. The grid connection has been confirmed by EPM, the engineering was validated by a certified firm, and the technology is globally proven Tier 1. Regulatory and climatic risks are minimal due to Colombia's mature legal framework for renewables and the site's stable equatorial irradiation. The main residual risks relate to energy market prices and debt service in the leveraged scenario, both adequately mitigated.
Regulatory
Mature and stable regulatory framework (Law 1715/2014, Law 2099/2021). Colombia has the highest legal certainty for FNCER in the region. Long-term incentives in effect.
Mitigant
Laws 1715 and 2099 provide stable, long-term incentive framework.
Technical
Layout and engineering validated by ERCO Energía. PVsyst certified simulation. Globally proven Tier 1 technology (Jinko + Huawei). Module degradation: 0.4%/year.
Mitigant
Tier 1 technology, certified simulation, validated engineering.
Connection
Connection point confirmed by EPM (June 2025). Technical inputs delivered. 13.2 kV grid with available capacity on circuit 505-13.
Mitigant
EPM confirmed viable connection point with available capacity.
Market / Prices
Energy price subject to variation. Mitigant: nominal LCOE ($230/kWh) is significantly below average tariff ($447/kWh), leaving a $217/kWh margin.
Mitigant
LCOE well below market tariff, providing $217/kWh buffer.
Financial
In debt scenario, DSCR close to 1.0x in first years. Mitigant: cash flows strengthen from year 3. The equity model eliminates this risk.
Mitigant
Cash flows strengthen from year 3; equity model eliminates debt risk.
Climatic
Equatorial location with stable irradiation (GHI: 2,118 kWh/m²/year). Interannual variability: 5.3%. No severe seasonality.
Mitigant
Stable equatorial irradiation with only 5.3% interannual variability.
Exit Strategy
Multiple liquidity and valuation options throughout the project's useful life (25 years).
The project is structured to provide flexibility throughout its 25-year useful life. Beyond ongoing cash flow distributions, the SPV (SAS) structure enables multiple exit and liquidity mechanisms, giving participants options at every stage of the project lifecycle.
Operation & Cash Flow
The project generates positive cash flows from year 1. The investor recovers capital in 3.5 years (equity) or 2.2 years (leveraged) and continues receiving dividends during the remaining useful life.
Asset Sale
The solar farm can be sold as an operating asset to infrastructure funds, utilities or institutional investors. Operating solar assets in Colombia trade at 8–12x EBITDA multiples.
Co-investor Entry
The SPV (SAS) structure allows new investor entry through preferred share issuance or partial stake transfer, without altering operations.
Refinancing
Once the project demonstrates operating track record (12–24 months), refinancing at more favorable rates or project finance structuring is possible.
*The total project value is an estimate and may vary.
Latest News About This Project
Documentation
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