Bolsonaro scraps solar tax planned by Brazilian regulator

The Brazilian president said the risk of a grid-fee for net metered PV installations will now be eliminated through an urgent ad-hoc decree that is expected to be approved soon by Parliament. The solar tax would have affected all new PV installations not exceeding 5 MW in size under net metering regime and would have seriously affected development of rooftop solar over the next years.

With a short message on his facebook account, Brazil’s president, Jair Bolsonaro, has announced that he reached an agreement with Rodrigo Maia, the President of the Chamber of Deputies, and David Alcolumbre, the President of the Senate, to approve as soon as possible a new decree for the elimination of the grid-fee for solar systems with up to 5 MW of generation capacity, which was proposed by the country’s regulator ANEEL.

This message was followed by a videoclip, in which the Brazilian president explained that the so-called solar tax was not proposed by the government but by the ANEEL alone, that is an autonomous agency with which the government can not interfere. “There will be no taxation for solar energy,” Bolsonaro affirmed straight out.

Bolsonaro’s statement came after ANEEL’s proposal was backed by the Ministry of Economy, which claimed the new tax was necessary to reduce the level of subsidies the government is devoting to support the net metering scheme, which in Brazil includes all PV installations not larger than 5 MW.

“The regulator needs to balance the regulation so that consumers who rely solely on the grid are not affected by consumers who generate their own energy,” said ANEEL chief André Pepitone in November. “There must be a fair allocation of costs. This is the role of the regulator.”

Brazilian trade body ABSOLAR said at the time that the proposal ignores the benefits distributed generation offers the grid, as well as power consumers. Marcio Takata, CEO of Brazilian consultancy Greener, said the to-be-scrapped measure would have halved growth in the distributed generation solar segment. Growth for solar under net metering was particularly strong in Brazil in the first nine months of last year year, with new additions totaling 833 MW to more than double the country’s cumulative capacity for the segment to 1.42 GW.

 

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