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China dominates 90% of Brazil's solar energy market; WEG, Brazilian giant, has only 1% share

Written by Alisson Ficher
Published 31/07/2024 às 20:17
Updated 05/08/2024 às 18:29
China dominates Brazil's solar energy market. (Image: reproduction)
China dominates Brazil's solar energy market. (Image: reproduction)

When talking about solar energy in Brazil, it is inevitable to think about the overwhelming dominance of a specific group. But who could have imagined that this hegemony would be almost exclusively China's?

The solar energy market in Brazil is currently dominated by Chinese companies, which control an impressive 90% of solar panel sales in the country – the data disclosed exclusively reflects the Solfácil base, as they were collected from financing requests made on the platform during the second quarter of the year.

This information contrasts sharply with the situation in WEG, one of the largest Brazilian manufacturers, which holds just a 1% share in this fast-growing market.

According to published data, Chinese company Deye leads with 22% of sales volume, followed by Goodwe, which has 18% of the market and specializes in large projects.

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These companies have benefited from the increase in demand for sustainable energy in Brazil, leveraged by continued tax incentives and falling production costs.

Brazil is seen as one of the main world powers in implementing solar energy projects, highlights Fabio Carrara, CEO and founder of Solfácil, in an interview with Folha de S.Paulo newspaper. He points out that “with the continued reduction in costs, more people should invest in this sustainable source of energy”.

In fact, the price of a watt-peak (Wp) fell 9% in the first half of 2024, reaching an average of R$2,66. This decrease is strongly linked to the cheaper price of polysilicon, a fundamental material in the manufacture of solar panels.

The aforementioned research also reveals regional variations in prices, with Rondônia and Roraima presenting the lowest values, R$2,30 and R$2,34 per Wp, respectively. The case of Roraima is particularly notable, as it recorded a 15% drop in prices between the first and second semesters. In contrast, Minas Gerais was the only state to register a 2% increase in the price of Wp, closing the semester with values ​​above R$3,00.

How to compete with China

This data raises an intriguing question: How can a Brazilian company compete in a market so dominated by foreigners? WEG, with just a 1% share, faces significant challenges in expanding its presence.

Competition is fierce, and Chinese companies are establishing an advantage that is difficult to overcome due to their ability to offer more competitive prices and advanced technologies.

However, there is a way to WEG and other Brazilian companies. Investing in technological innovation, expanding partnerships and seeking market niches that are still little explored are strategies that can help reverse this scenario of foreign dependence.

Furthermore, growing awareness about the importance of sustainability can serve as a driver for the adoption of renewable energy by Brazilian consumers and companies.

The question that remains is: Will Brazil be able to reverse this trend of foreign dominance and assert itself as a leader in solar energy production? The answer depends on a number of factors, including government policies, technological advances and changes in consumer behavior.

What do you think about this Chinese “invasion” in Brazil? Good or bad for our country? Leave your comment!

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Luiz
Luiz
31/07/2024 20:28

It's terrible, Brazil must once and for all take a direction, it must prioritize labor, create companies and improve the standard of living of the BRAZILIAN worker. Brazil must manufacture its own consumer goods, we have all the raw materials!!!!

Nathan
Nathan
In reply to  Luiz
01/08/2024 07:01

That's easy, the government just needs to charge fewer taxes so that the web and many other good industries in Brazil will grow and so will Brazilians.

Valdiron
Valdiron
In reply to  Nathan
02/08/2024 07:50

WEG has a lot of incentive, Brazil should tax Chinese companies.

Roberto Francelino da Silva
Roberto Francelino da Silva
01/08/2024 07:16

This reversal is difficult, if it depends on the government it will implode, as it becomes the majority shareholder of companies with its exorbitant tax burden. The consumer's only option is to look for the cheapest option.

Frank Edson Reis Lima
Frank Edson Reis Lima
01/08/2024 07:53

And good increases competitiveness

Leandro
Leandro
01/08/2024 08:10

Obviously it's bad, but with this Government, probably only fake incentives unfortunately!!

John Louis Poma
John Louis Poma
01/08/2024 08:15

Unfortunately, the government does not help local companies by reducing taxes, which ends up making the domestic product more expensive. On the other hand, we need technology, and the cheapest product there is no way to compete with the world power that is China. Thanks to them, we were able to implement more affordable photovoltaic systems, but like in Brazil, everything is taxed. So we will no longer be able to do anything, not buy here at a very high price, and not import due to abusive taxes. This is our Brazil, unfortunately.

Valdiron
Valdiron
In reply to  John Louis Poma
02/08/2024 07:54

Brazil should tax Chinese companies. Yes, WEG has good incentives, but the Chinese are subsidized by the Chinese State! Brazil should heavily tax Chinese companies. We have technology and can offer these boards at reasonable prices, generating jobs and income!!

Alisson Ficher

Journalist graduated in 2017 and working in the field since 2015, with six years of experience in print magazines and over 12 thousand online publications. Specialist in politics, jobs, economics, courses, among other topics. If you have any questions, want to report an error or suggest a topic on the topics covered on the site, please contact us by email: alisson.hficher@outlook.com. We do not accept resumes!

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