Rooftop Solar in Brazil Can Reach 2 Gigawatts If Tax Is Dropped

Rooftop solar power in Brazil can reach 2 gigawatts of capacity by 2024 after the government ruled states no longer must tax renewable power.

The threshold is possible if all states in the country agree to drop a tax on power generated from solar panels and other distributed energy systems, the country’s energy regulator Aneel said Thursday in an e-mail.

In an attempt to encourage small-scale power growth, the country’s National Economic Policy Council ruled last week that Brazilian states are no longer required to tax renewable energy generated in homes and small businesses. The ICMS tax averaged 20 percent to 30 percent of the value of renewable energy that homes and businesses return to the grid.

“The initiative is a positive sign to spur distributed generation in Brazil,” said Rodrigo Lopes Sauaia, executive director of the Brazilian Photovoltaic Solar Energy Association.

About 700,000 homes and small businesses would have to install solar panels to reach the 2-gigawatt threshold.

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