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We recently got together with David Ochoa, owner of Cabo Green Power, to discuss the state of energy in Baja California Sur. From the high cost of electricity and the challenges of an isolated grid to the rise of hybrid solar systems and the potential of new technologies like thermosolar power, David offers a grounded view of how the region is adapting to rapid growth and increasing demand for reliable, clean energy.
How would you describe the current energy situation in Baja California Sur, both for households and for businesses?
Every person I talk to, from homeowners to business owners, faces the same challenge: electricity in Baja California Sur is expensive. Most of our clients who have moved here from Canada or the U.S. tell us that their power bills are higher than what they were accustomed to. It often surprises them. Energy here takes up a much bigger part of the household or business budget.
Mexico offers some incentives, particularly for companies, allowing solar investments to be fully tax-deductible. However, power remains costly and sometimes unreliable. When you combine high prices with occasional brownouts or blackouts, electricity becomes something people have to plan for instead of taking for granted.
What makes Baja California Sur’s energy system unique compared to the rest of Mexico?
Baja California Sur operates as a completely separate grid. I recently attended a presentation by experts from CFE (the national state-owned power company) and CRE (a government regulatory agency) in La Paz, and they explained that this is one of the few regions in Mexico not connected to the national system. All the electricity we use here has to be produced and transmitted locally. There’s no backup from other states when demand rises, and no way to export excess power when conditions are ideal.
That isolation makes the system fragile. CFE must balance production carefully throughout the day. When the sun comes out and hundreds of solar systems start generating electricity, CFE must reduce its own production to maintain grid stability. In the evening, when solar panels stop producing, they must ramp up generation quickly. Without large-scale battery storage, that balancing act becomes a daily technical challenge.
The federal government recently announced plans to build the country’s first thermosolar plants here in Baja California Sur. What’s your take on that?
I don’t have all the details yet on how these projects will be implemented, but it will be interesting to see how they develop. What I can say is that Baja California Sur has some of the best solar conditions in the world. If CFE can make good use of that potential, it could be a big step forward.
The key will be in how the system is designed and managed. A project like that needs enough storage capacity to handle the shifts in demand throughout the day. If it’s done well, it could help reduce the state’s dependence on fuel oil and improve reliability. But success will depend on how carefully those technical details are planned and executed.
In your view, what needs to happen for Baja California Sur’s energy situation to truly improve?
The growth in Baja California Sur has been enormous, and it’s difficult for basic services to keep up, especially electricity. There are really two possible paths. Either CFE expands generation, transmission, and storage capacity fast enough to match demand, or private homeowners and businesses will have to take more control of their own energy. I’m not sure CFE can move quickly enough, given the rapid growth of the population and tourism.
That’s why many people are turning to hybrid systems: setups that connect to the grid but also include battery backup. A few years ago, those systems were rare, maybe one percent of our installations. Today, they make up around a quarter of what we do. People are realizing they can’t wait for someone else to solve the problem.
What are homeowners and businesses asking for most right now when they come to you?
For most homeowners, the primary concern is reliability. They want to know that if there’s a storm or a blackout, they can still power the essentials: lights, refrigeration, maybe air conditioning. It’s about peace of mind. Power outages here can last a full day or more, and that affects basic comfort and safety.
Businesses, on the other hand, often focus on cost. Their energy use peaks during daylight hours, which is when solar performs best. For them, grid-tied systems without batteries can make sense. They lower their CFE bills substantially by producing electricity right when they need it most. It’s a simple solution, but it makes a big difference in their monthly costs.
Developers are increasingly trying to integrate solar into projects from the planning stage. Are you seeing that trend as well?
Absolutely. A few years ago, most builders didn’t consider solar energy until a homeowner requested it. Now, many developers include it in the design phase. It saves time and money in the long run because everything, from wiring to roof structure, is planned with solar in mind.
We’re now working with several construction companies that send us their blueprints early in the process to see what the system would require. That’s the best time to do it. You don’t have to cut through concrete or rework electrical connections later. The shift came largely from customer demand. Homeowners began asking for solar energy, and the builders followed suit.
When you think about the future of solar energy in Baja California Sur, are you optimistic?
Yes, very optimistic. Solar has enormous potential here. When we started out, many people were unsure whether the technology would really work in this climate. Now they’ve seen it in action. The panels are larger and more efficient, the inverters have become more advanced, and the new lithium batteries are safer and longer-lasting.
These improvements have made systems much more reliable. Today, even large homes or small hotels can operate entirely off-grid if they choose. And when you compare our sunlight to places like Japan, Israel, or Germany, countries that have been leaders in solar for decades, we actually have a better natural advantage. We have more consistent, high-quality sun. The technology has arrived, and the conditions are here. Solar in Baja Sur will only keep growing.