La Caucana Solar Farm
La Pintada, Colombia
Project Status
Structuring
Project type
Renewable Energy
Total project value
The total project value is an estimate and may vary.$1.757.700
US Dollars
Value to invest
Estimated income
$25 - $27
Per year
Projected return (Effective Annual)
16.26% - 17.59%
Projection, not guaranteed
What is La Caucana Solar Farm?
La Caucana Solar Farm is a 1.48 MW solar photovoltaic plant (1,478.62 kW) in La Pintada, Antioquia. It will generate about 2,070 MWh a year (15.98% capacity factor) and sells its energy under a power purchase agreement (PPA) at an indexed tariff: COP 320 per kWh in the first year, with a projected 3–4% yearly increase, for an average nominal tariff of COP 529 per kWh over 25 years.
The investment is 100% equity, with no debt, made through an SAS with a collection trust under a private share subscription agreement. It includes the purchase of the 1.5 Ha lot where the plant sits, which appreciates and is sold at the end of the 25 years. Total investment: COP 5,687 million —construction (EPC) COP 4,047.8 million, recoverable VAT COP 514.4 million, lot COP 525 million and structuring COP 600 million. Minimum ticket: COP 300,000. The plant is operated by ERCO / SOLVED.
What the financial model projects
- 16.26% IRR with the lot included (17.59% for the plant alone)
- NPV of COP 1,837 million (12% WACC) and a 1.34x profitability index
- Payback in 6.32 years
- 428% ROI over 25 years, including the projected sale of the lot for COP 5,688 million
- Nominal LCOE of COP 157 per kWh against an average tariff of COP 529: a margin of COP 372 per kWh
The UPME certification and the grid operator permit are in progress. These figures are projections, not a guaranteed return.
How the operation is going in 2026
Actuals where we have them and projections for the remaining months of 2026, taken from the financial performance charts further down.
Get to know the project in depth
We'll answer your questions, or show you around La Caucana Solar Farm in person.
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
1,478.62 kWp
AC Capacity
990 kWac
Solar Modules
Jinko Solar JKM725N 725 Wp
Inverters
5 units Huawei (330 / 50 / 40 kW)
Total Land
1.5 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 plant will generate about 2,070 MWh per year, with a 15.98% capacity factor — enough to supply over 650 Colombian households.
Annual Production
Specific Production
Performance Ratio
Capacity Factor
Monthly Production (MWh injected to grid)
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
Location
Vereda La Pintada, Santa Barbara, Antioquia, Colombia · La Pintada, Antioquia, Colombia
How to invest in La Caucana Solar Farm?
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 participate. Experts operate. Urban makes it possible.
*Results are variable and depend on the asset's performance; they do not constitute a guaranteed return.
*Transfers depend on there being buying interest; they are not immediate or guaranteed.
Financial Models
Both scenarios are profitable and funded 100% with equity, with no debt. The plant alone gives the higher IRR; adding the lot brings a real asset that appreciates and is sold in year 25.
The energy is sold under a power purchase agreement (PPA) at an indexed tariff: $320 COP/kWh in the first year, with a projected 3–4% yearly increase, for an average nominal tariff of $529 COP/kWh over 25 years. With the lot included, the nominal LCOE is $157 COP/kWh: that $372 difference per kWh produced is the source of the cash flow distributed among project participants. Two scenarios are presented, both with equity: the plant alone, and the plant plus the purchase of the lot it sits on.
Scenario A — Own Resources
Plant construction only: lower initial investment, higher IRR and better NPV.
17.59%
IRR
5.67
Payback
354%
ROI
Scenario B — Own Resources + Lot
Adds the purchase of the 1.5 Ha lot, sold in year 25: higher total ROI.
16.26%
IRR
6.32
Payback
428%
ROI
The lot
Scenario B buys the 1.5 Ha plot the plant sits on, at $35,000 per m²: $525 MM COP paid in two equal installments, in years 0 and 1. With a projected appreciation of 10% a year, its sale in year 25 is estimated at $5.7 B COP. That income explains the jump in year 25 net cash flow and the scenario's higher ROI.
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
Special deduction of COP 708 million against taxable income, applied gradually: the balance is used up around year 8 or 9. Subject to an annual cap of 50% of taxable income.
$708 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
$514 MM
Recoverable VAT
The VAT paid on FNCER equipment (COP 514 million) is recoverable in the first year of operation.
$514 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.
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.
Risks & Mitigants
Low risk profile — most pre-construction risks have already been mitigated.
This project has a low overall risk profile. Grid connection viability 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 risk relates to energy market prices, mitigated by the margin between the cost of production and the sale tariff.
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 viability confirmed by EPM (June 2025). Technical inputs delivered. 13.2 kV grid with available capacity on circuit 505-13. Grid operator permit and UPME certification in progress.
Mitigant
EPM confirmed viable connection point with available capacity.
Market / Prices
Energy price subject to variation. Mitigant: nominal LCOE ($157/kWh with the lot, $258/kWh for the plant alone) is significantly below the nominal 25-year average tariff ($529/kWh), leaving a $271 to $372/kWh margin.
Mitigant
LCOE well below market tariff, providing a $271 to $372/kWh buffer.
Financial
The project is funded 100% with equity, with no debt: there is no debt service to cover. Returns depend on actual generation and on how the tariff evolves, and are not guaranteed.
Mitigant
No debt or external financing; operating cash flow is positive from year 1.
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 6.32 years (with the lot) or 5.67 years (plant alone) 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), financing can be structured on the operating asset at favorable rates to release capital.
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How much do you want to invest?
Return projected annually from sales between 16.26% and 17.59%.
Estimated income between $25 and $27 US dollars per year.
Profits are shared among investors according to the project's distribution policy.
Recovery of your investment estimated within 5.7 - 6.2 years.
Financial Performance
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This conversation is informational about the project's structure. It does not constitute financial, legal or tax advice, nor a public offering of securities. All participation carries risk.