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Alesp Exempts ICMS on Components and Equipment for Solar Energy Utilization

Written by Valdemar Medeiros
Published on 28/04/2022 at 11:59
Updated on 28/04/2022 at 12:04
Alesp - ICMS - isenção de ICMS - energia solar- equipamentos de energia solar
Painéis fotovoltaicos – imagem: Freepik/LSenergy
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Alesp Supports Measures Taken by Confaz to Exempt Solar Energy Equipment, Such as Panels and Heaters, from the Tax on Circulation of Goods and Services (ICMS).

The Plenary of the Legislative Assembly of the State of São Paulo (Alesp) stated in a session held last Tuesday (26) that it agrees with the initiative of the National Council for Tax Policy (Confaz) to remove the Tax on Circulation of Goods and Services (ICMS) for components and solar energy equipment in the state. The decision to exempt the ICMS also includes solar water heaters and solar panels on the list of components focused on renewable energy generation that are exempt.

ICMS Exemption for Solar Energy Equipment

The Draft Legislative Decree 16/22 states an agreement with Convention 24/22, which has already been corrected by State Decree 66,674/22. According to Alesp President, Deputy Carlão Pignatari, solar energy is a cost-effective and efficient source in Brazil, and it is essential to encourage its use so that more families, institutions, and businesses install solar energy equipment.

Confaz is made up of the Finance Secretaries of all the states in Brazil and the Federal District, and it is responsible for accelerating agreements and discussing and approving exemptions and other tax incentives for ICMS. Alesp also developed Alesp Preserva last year, a sustainability program aimed at encouraging actions to combat climate change and preserve natural resources.

Among the program’s actions, there is a plan for the installation of solar energy equipment at the Palácio 9 de Julho so that renewable energy can be utilized at Alesp’s headquarters. A study conducted in January showed that there is feasibility for the installation of solar energy equipment on the building’s terrace, which should take place still in 2022. The location has an area of 36,000 square meters, and with the installation, the estimate is that Alesp will save R$ 30,000 per month on electricity.

São Paulo Advances in Solar Energy

The Favela Marte, located in São José do Rio Preto, will be the first community completely powered by solar energy in Latin America. The site will serve as a base for a larger project aimed at generating income and social development for residents.

The community, known as Vila Itália, began to emerge in 2014 and for several years, the population faced legal actions aimed at expropriating the private area. A new setback occurred when the area was selected as a base for the Favela 3D project, aimed at creating a dignified, developed, and digital environment.

The project was developed by the NGO Gerando Falcões and includes various actions from both the public and private sectors. For example, the fintech Meu Financiamento Solar and Banco BV will finance the installation of solar panels in the 240 homes of the community.

Solar Energy Market in Brazil in 2021

Brazil was the fourth country that grew the most in solar energy installations in 2021, considering that this source accounts for 2.4% of the entire energy matrix of the country.

According to data released by the Brazilian Photovoltaic Solar Energy Association (Absolar), the country exceeded the milestone of 14 GW of installed operating capacity, which is greater than the installed capacity of the Itaipu hydroelectric plant. According to Absolar, the installation of solar energy was responsible for reducing the emission of 18 million tons of CO2 in Brazil’s electricity generation.

Valdemar Medeiros

Formado em Jornalismo e Marketing, é autor de mais de 20 mil artigos que já alcançaram milhões de leitores no Brasil e no exterior. Já escreveu para marcas e veículos como 99, Natura, O Boticário, CPG – Click Petróleo e Gás, Agência Raccon e outros. Especialista em Indústria Automotiva, Tecnologia, Carreiras (empregabilidade e cursos), Economia e outros temas. Contato e sugestões de pauta: valdemarmedeiros4@gmail.com. Não aceitamos currículos!

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