The Brazilian Government paving the way for transition to solar power in homes and businesses

An action coordinated by the Federal Government on various fronts, supported by the Ministry of Mines and Energy, will change the panorama for solar power generation over the coming years in Brazil’s largest cities. By 2024, around 700,000 residential and commercial clients will have installed solar PV panels on their roofs, transforming sunshine into electricity. Any excess energy produced will be sold to a distributor, helping bring down domestic energy bills.

According to Aneel, the National Electricity Regulatory Agency, this type of distributed generation is estimated to offer a potential installed capacity of 2 GW over this period that will now focus on solar PV energy. This distributed generation concept could also involve another type of latest generation consumption, such as wind power or even generators. Another longer-term estimate, developed by the EPE, the Government’s Energy Research Agency, predicts that by 2050 around 13% of the country’s housing supply will be powered from this source.

The stimulus measures proposed by the Ministry include: simplifying the rules for power generation in homes and commercial buildings; changing taxation on the energy produced; and promoting industrial investment in the sector. A pact directed by Confaz, the National Council for Financial Policy and already signed by the states of São Paulo, Goiás and Pernambuco, establishes that the consumer does not pay the state tax on the energy they generate, the ICMS, but only on the excess consumed from the distribution grid.

In line with EPE projections, by 2050 Brazil could have an installed capacity of 78,000 MWp in solar power, with 33,000 MW corresponding to homes; 29,000 MWp from the commercial sector; 13,000 MWp generated in industries and 3,000 MWp from public sources.