Scaling Distributed Solar in Mexico: SCF Investment Grupo LUXUN Named Mexico's Best C&I Solar Company by CPEF

On 17 May 2023, the Subnational Climate Fund (SCF) confirmed its investment of USD 43 million in Grupo LUXUN, a Mexican platform focused on distributed solar generation for commercial and industrial (C&I) clients. This investment reflects a broader conviction: that mid-sized, distributed infrastructure—when properly structured—can offer compelling, scalable opportunities for private capital while delivering measurable climate impact.

Today, that conviction is being validated. Grupo LUXUN has been recognized as Mexico’s leading C&I solar company by the Consejo de Profesionales en Energía Fotovoltaica (CPEF), underscoring both execution capacity and market leadership in a complex and rapidly evolving sector.

More importantly, the trajectory of LUXUN illustrates how targeted technical assistance and disciplined project preparation can transform a fragmented opportunity into an institutional-grade investment.

“This recognition means a lot, but what it really reflects is the work of a team that works tirelessly to execute under pressure and keeps the client and its interests at the center of it all. C&I solar in Mexico is not an easy market, it’s built on resilience, trust, and solving problems on the go no one prepared you for. None of this would have been possible without the support of our partners Pegasus Capital Advisors, and in particular Ronen Gani and Daniela Gomez, who believed in this vision from the start and have been true partners in building it. We’re proud of what we’ve built, and being named Mexico’s best C&I company by CPEF is a strong signal we are having a positive impact in this industry and its future.”

— Diego Ayala / CEO & Founder, Grupo LUXUN

SCF’s Role: Strengthening Bankability Through Targeted Technical Assistance

Prior to investment, SCF—through its Technical Assistance Facility—worked alongside LUXUN to strengthen the project’s financial, technical, and operational foundations. This approach is consistent with SCF’s broader model of bridging early-stage gaps to unlock private capital flows .

Key interventions included:

1. 1. 1. • Structuring a Scalable Portfolio Model
         • Strengthening Revenue Certainty through PPA Structuring
         • Enhancing Financial Modelling and Capital Structuring
         • Supporting Technical and Operational Readiness
         • Addressing ESG and Regulatory Considerations

Since SCF’s investment, Grupo LUXUN has built a portfolio exceeding 45 MW of distributed solar and storage assets across Mexico. The company’s model—based on long-term contracts and operational excellence—has demonstrated both resilience and scalability.

The recent recognition by CPEF reflects not only market positioning, but also the robustness of the underlying platform. In parallel, LUXUN has advanced into battery energy storage systems (BESS), further strengthening its value proposition and enabling additional solar deployment by addressing intermittency and grid constraints.

A Replicable Investment Case

For investors, the relevance of the LUXUN case extends beyond a single company. It illustrates a broader opportunity:

• Distributed infrastructure can be aggregated into scalable platforms
• Technical assistance can materially reduce early-stage risks
• Blended finance structures can align public and private capital
• Emerging market assets can achieve institutional-grade characteristics with the right preparation

SCF’s model—combining grant-funded technical assistance with equity investment—has been designed precisely to unlock such opportunities, translating pipeline into deployable capital at scale.

As distributed energy markets continue to expand across emerging economies, the need for structured, investment-ready platforms will only increase. Grupo LUXUN demonstrates what is possible when early-stage barriers are systematically addressed.

For investors seeking exposure to high-growth climate infrastructure—while managing risk through disciplined structuring and preparation—such platforms represent a compelling entry point.

SCF continues to develop and support a pipeline of similar opportunities across geographies and sectors, offering partners access to projects that have been rigorously prepared for investment and scale.

About Grupo LUXUN

A leading Mexican renewable energy company that offers turn-key solar energy installations for businesses and enterprises without up-front investments, through a Power Purchase Agreement (PPA) and leasing models. LUXUN aims to eliminate financial and operational barriers to solar energy adoption while taking advantage of the country’s vast solar irradiance, reducing reliance on fossil fuels, and avoiding harmful emissions.

About the Subnational Climate Fund (SCF)

The Subnational Climate Fund (SCF) is a global blended finance initiative that aims to invest in and scale mid-sized (5 – 75 M $USD) subnational infrastructure projects in the fields of sustainable energy, waste and sanitation, regenerative agriculture and nature-based solutions in developing countries. The SCF features a dedicated, grant-funded facility ($28M) for Technical Assistance (TA) that provides technical support and grant funding to stakeholders in identifying and strengthening investment proposals for the Fund. The TA Facility is managed by the International Union for Conservation of Nature (IUCN) and implemented together with the Foundation R20 and Gold Standard. The Green Climate Fund committed up to $150 million to the Investment Fund for a junior tranche which is intended to further de-risk investment, and a further $18.5 million for the technical assistance facility.