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Changes in import tax policy impact the installation of solar panels for consumers who want to adopt solar energy
The Brazilian government's recent decision to withdraw tax exemption of essential items for solar panel systems, such as photovoltaic modules and solar inverters, is having a direct impact on the cost of installing solar energy in homes. This measure, which aims to encourage national industry, ends up making the process more expensive for end consumers, according to the Gazeta do Povo website.
Impact of taxation on solar energy installation
With withdrawal of exemption, the tax on solar panels jumped from zero to 9,6%, directly reflecting in the final cost to consumers. According to consultancy Greener, this increase can represent around 3% more in the total cost of installing a residential solar energy system.
Another item affected by change of item tax for solar panels is the solar inverter, equipment responsible for converting solar energy from direct current to alternating current. The taxation of this equipment, decided in March, also contributes to increased installation costs.
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Challenges for the national industry and sector perspectives after tax changes
Although the government's intention is to boost the national industry, the solar energy sector assesses that the withdrawal of tax benefits for solar panels was hasty. The measure puts the development at risk area location and can negatively impact new businesses and investments in the sector.
Currently, Brazil does not yet have a sufficient production scale to meet the internal demand of the solar energy chain. This means that, despite taxation, companies can continue importing products, now with additional fees, which reflects increased costs for consumers.
For the Photovoltaic Solar Energy Association (Absolar), it is essential to establish a transition plan with a minimum period of 24 months for solar panel equipment in use by the sector. The entity warns of the risk of a drop in investments, cancellation of projects and loss of jobs in the sector, in addition to the possible increase in the price of solar energy for Brazilian consumers.
Incentive to national industry? It must be a joke. All equipment is imported.
In fact, this is lobbying by dealerships, who do not want to lose revenue.
They are braggarts talking about national industry, but nothing is manufactured here.
They buy in China and put the national brand on it, lol.