Phase 1 of 5 - Understand

What is this
all about?

Before organizing anyone, understand the idea well. Here it is explained without jargon: what it is, why it makes sense, how other countries did it, and what Colombian law says.

How it works

Five steps, from sunlight to your pocket

Tap each step for details.

  1. Any adult who lives in the community can participate. You don't need technical knowledge. You don't need to be wealthy. You don't need to own your home: renters can participate too.

    What you need is the willingness to organize with your neighbors for something that benefits everyone.

  2. The panels are installed on the roof of the community hall, school, health center, or church. If land is available, even better, but it's not a requirement.

    The community doesn't install anything: that's done by a specialized company, the technical operator. The community provides the organization and makes the decisions.

  3. Colombia has a huge advantage: most of the country receives between 4 and 6 peak sun hours per day, which is excellent for solar energy. A 1 kWp panel produces approximately 4 to 5 kWh per day.

    What about cloudy days? They produce less, between 10% and 25% of a sunny day. They don't stop working.

  4. That electricity is used in three ways:

    Self-consumption: what the panels produce, you don't have to buy from the utility. Grid sales: surplus energy is fed into the grid and the grid operator pays for it. Common savings: profits accumulate in a fund that the community decides how to use.

  5. You receive Community Participation Certificates that represent your share of the business. Each member has one vote, regardless of how much they contributed. The person who put in more doesn't get more say.

    This is not a government program that comes and goes. It's yours, your family's, your community's.

The difference

Without a cooperative and with one

The same situation, seen from a different angle.

Without a cooperative

  • The bill goes up and there's nothing you can do. An average family pays between COP 120,000 and COP 250,000 per month.
  • You have no say. The utility sets the tariff; you pay.
  • Money leaves the community. Every peso on the bill leaves the village and never comes back.
  • When there's a blackout, there's no power. You depend entirely on the grid.
  • Energy from whatever source. Much of it is produced by burning coal or gas.

With a cooperative

  • The bill can drop by COP 80,000 to COP 150,000 per month. Exactly how much depends on your consumption and the project size.
  • You decide at the assembly. Where the panels go, what happens with the profits, how much the fee is.
  • Money stays local. Between 5 and 15 direct jobs per project, depending on size.
  • Greater resilience. With your own generation -- and eventually batteries -- you depend less on the grid.
  • Cleaner air. The sun produces no smoke, doesn't pollute water, makes no noise.

In all honesty

None of this is automatic or guaranteed. It's an estimated range from the model, and it depends on decisions that haven't been made yet and a project that doesn't yet exist. Forming the cooperative takes work: meetings, paperwork, patience. The real advantage is that you do that work once and the benefit lasts 25 years.

This is already happening

You're not inventing anything new

As of April 2025, more than 18,000 communities had applied to register as an energy community in Colombia, and 285 were selected. Your community could be next.

This is not an experiment

Other countries have already done it

Ordinary people: teachers, bakers, retirees, homemakers. They didn't need to be engineers to get started.

Netherlands

438 energy cooperatives

The organization Energie Samen ("Energy Together") brings together 438 cooperatives with more than 143,000 citizen members. Each one operates on the principle of "one member, one vote." Members buy a share of between 250 and 500 euros.

438 cooperatives
143,000 members
775 MW installed

They receive annual dividends of 2% to 6% on their investment.

Denmark

The island that produces all its energy

Samsoe, an island of 4,000 inhabitants, decided to produce 100% of its energy from renewable sources. They achieved it in 10 years. In the Middelgrunden wind farm, 8,500 citizens are co-owners.

8,500 co-owners
40 MW Middelgrunden
20% required by law

Each one bought shares for about 570 euros and receives an annual return of 7%. Danish law requires that 20% of any renewable project be offered to local residents.

Germany

They bought their own electric grid

In Schoenau, a Black Forest town, citizens grew tired of depending on a company that used nuclear energy. After Chernobyl, they organized a cooperative, raised funds, and bought their municipality's electric grid.

1,000+ cooperatives
220,000 members
200,000 EWS customers

Today EWS Schoenau is a 100% citizen-owned utility. Germany has 3.6 billion euros invested by energy cooperatives.

Closer to home

Costa Rica has 4 electricity cooperatives -- Coopelesca, Coopeguanacaste, Coopesantos, and Coopealfaroruiz -- that together serve more than 180,000 families and control about 15% of the national electricity market. They've been operating for over 60 years.

Colombia has already started. As of April 2025, more than 18,000 communities had applied to register as energy communities with CREG (the energy regulatory commission). Of those, 285 have already been selected.

The message is clear: if ordinary people in the Netherlands, Denmark, Germany, and Costa Rica did it, your community can too.

Legal framework

What does the law say?

Good news: the Colombian government doesn't just allow it, it actively promotes it.

Ley 1715 of 2014 (updated by Ley 2099 of 2021)

This law states that Colombia must promote non-conventional renewable energies, such as solar. It offers significant tax benefits: income tax deductions, VAT exemptions on solar equipment, tariff exemptions on imported equipment, and accelerated depreciation.

In plain language: the government makes it cheaper to install solar panels.

Decreto 2236 of 2023

This decree officially defines what an "energy community" is in Colombia. It establishes that a group of citizens, community organizations, or small businesses can organize to produce, store, and share renewable energy.

The decree does not require a specific legal form: you can be an association, a cooperative, or a JAC (Junta de Accion Comunal, community action board). What matters is meeting the requirements.

CREG Resolution 101 072 of 2025

This is the most recent and most important regulation. It establishes the rules for energy communities to connect to the grid and receive compensation for the energy they feed in. It defines two main frameworks:

  • AGRC (Remote Collective Self-Generator with Credits): your community generates energy in one location and consumes it in another, using the grid as a "bridge." You receive credits on your bill.
  • GDC (Community Distributed Generation): generation connected directly to the local distribution grid, with compensation.
Resolution 40509 of 2024 -- RUCE

This creates RUCE (Registro Unico de Comunidades Energeticas, the Unified Registry of Energy Communities). It is the official registry where your community enrolls to be formally recognized by the government as an energy community. It is free.

Ley 79 of 1988 -- the cooperative law

If your community decides to form as a cooperative (which is what we recommend in the medium term), this is the applicable law. It establishes that a cooperative needs a minimum of 20 founders, must have bylaws, and must register with Supersolidaria (the solidarity economy regulator).

Ley 454 of 1998 -- solidarity economy

This establishes the solidarity economy framework in Colombia. Cooperatives are part of this framework, which means special tax treatment: they pay tax at 20% on their surpluses, instead of the 35% that regular companies pay.

What does all this mean for you?

  1. It is completely legal to produce your own energy with solar panels.
  2. The government helps you with tax benefits and financing programs.
  3. You can sell your surplus energy to the grid and receive compensation.
  4. There is an official registry (RUCE) that recognizes you as an energy community.
  5. You don't need special permission to organize: you can start as an association and later formalize as a cooperative.
Frequently asked questions

The 22 questions everyone asks

Answered directly, no beating around the bush.

About the cooperative

Do I need to know about electricity or solar panels?

No. CleantechHUB connects you with specialized operating companies (such as Unergy, Celsia, or Erco Energy) that handle everything technical: design, installation, maintenance. The community provides the organization, the willingness, and participates in decisions. The technical side is managed by professionals.

What's the minimum number of families needed?

We recommend starting with at least 20 interested families. To form a cooperative under Ley 79, the legal minimum is 20 founders. For a community association there's no strict legal minimum, but with fewer than 20 families the project is unlikely to be economically viable.

How long does the whole process take?

From the first meeting to panels generating electricity: approximately 8 to 14 months. Community organizing takes 2-3 months, legal formalization 1-2 months, financing 2-3 months, and construction 2-4 months. With CleantechHUB's support, the process moves faster.

Who owns the panels?

In CleantechHUB's model, the panels are owned by the project, managed through a trust called the Patrimonio Autonomo (independent trust). The community owns 30% of the project through its Participation Certificates. The remaining 70% belongs to the investors who contributed the larger capital. But decisions about the project are made with community participation.

Can I belong to more than one energy cooperative?

Yes, the law doesn't prohibit it. But your active participation is more valuable when you focus on one.

Can renters participate, or only homeowners?

Everyone can participate. You don't need to own your home. What matters is that you live in the community and want to commit.

Is a president or formal leader needed?

Yes. Every association or cooperative needs a democratically elected board of directors. But being president doesn't mean doing everything alone: it's teamwork with clear roles.

How is this different from panels installed on individual homes?

The main difference is collective power. When 50 families buy together, they get better prices than one family alone. Also, a cooperative can access institutional financing, tax benefits, and subsidies that an individual family cannot. And the entire community benefits, not just those with their own rooftop.

How long does the project last?

Solar panels last 25 to 30 years. Energy contracts (PPA, power purchase agreements) are typically for 15 to 20 years. After paying off all the debt (typically in 7-10 years), nearly all the profit goes to the community.

About the money

How much do I have to pay out of pocket?

It depends on the project, but a typical member contribution is between COP 100,000 and COP 500,000. In some cases it can be paid in installments over 6 months. In-kind contributions are also accepted: labor, lending of land or rooftop, administrative work.

What if I can't afford that?

There are tiered membership schemes. Lower-income members can contribute from COP 50,000. Furthermore, most of the project financing comes from public funds (FENOGE, the national renewable energy fund), green credit lines (Bancoldex, Colombia's development bank), and international cooperation.

Your contribution doesn't finance the panels: your contribution gives you the right to participate and receive benefits.

How much will I save on my bill?

Between COP 80,000 and COP 150,000 per month, depending on your current consumption and the project size. Some families have cut their bill in half.

Note: that is an estimated range, not a guaranteed figure. Until the project exists and actual production is measured, nobody can tell you the exact number. Be wary of anyone who promises one.

Does CleantechHUB charge for its support?

CleantechHUB charges a management fee as Venture Builder, which is paid from the project's revenues, not from your pocket. In other words, CleantechHUB earns when the project earns. That aligns our interests with those of the community.

Is there a risk of losing my investment?

Every project has risks, but they are low. Solar panels are proven technology with a 25-year warranty. The sun isn't going to stop shining. Energy sales contracts provide income certainty. And the legal structure (Patrimonio Autonomo) protects the project's assets.

That said: no investment is 100% risk-free. Community solar energy is one of the safest investments out there, but that's not the same as being risk-free. If someone tells you there's zero risk, they're not telling you the truth.

About participation

What if I want to leave the cooperative?

You can withdraw at any time. Your Community Participation Certificates can be transferred to another community member. After 5 years, you can also request redemption at the current value.

What if someone in the cooperative doesn't pay their fees?

The bylaws clearly define what happens: first a notice, then a grace period, then suspension of benefits, and finally exclusion if the issue isn't resolved. There's a fair process, but it's enforced. If the difficulty is financial, the Board of Directors can approve a flexible payment plan.

What happens to my share if I move?

If you move away from the community, you can transfer your Participation Certificates to a family member who still lives there, or to another member. You can also request redemption after the minimum membership period.

Can the government take the panels away?

No. The panels are private property, protected by the Constitution. The government has no authority to expropriate a community solar energy project. On the contrary: the government actively promotes these projects.

About the technology

Do panels work when it's cloudy?

Yes, though they produce less. On a cloudy day, a solar panel produces between 10% and 25% of what it produces on a sunny day. Colombia has a huge advantage: most of the country receives between 4 and 6 peak sun hours per day, which is excellent for solar energy.

What if the panels get damaged?

Modern solar panels come with a 25-year manufacturer warranty. The operating company handles specialized technical maintenance. The community only does basic upkeep: cleaning the panels with water (no soap), checking that there are no new shadows (like a tree that grew), and reporting any issues.

What if the utility won't buy our surplus energy?

The law requires them to. CREG Resolution 101 072 of 2025 establishes that the grid operator must compensate energy communities for the energy they feed into the grid. It's not optional for them.

Do we need a large plot of land?

Not necessarily. Panels can be installed on rooftops of community buildings: schools, health centers, community halls, churches. If land is available, even better, but it's not a requirement.

Glossary

The jargon, explained

All the terms you'll hear in meetings, paperwork, and contracts. Search by word or filter by letter.

Got the idea?

The next step is to bring people together. Form the Steering Committee and call the first meeting.

Next: Organize → Take the "Are You Ready?" quiz