Solar Photovoltaic Energy Sees Strong Demand in Brazil as Renewable Energy Market Expands

Solar Photovoltaic Energy Market Has Great Demand and Boosts the Brazilian Renewable Energy Industry

The first half of this year, 2021, was enough for solar photovoltaic installations in Brazil to reach 90.77% of the total installed in 2018, according to data collected by the National Electric Energy Agency (Aneel), which regulates the distributed generation segment, created in 2012 through its Normative Resolution 482.

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According to Aneel, there were 31,896 new micro and mini-generator connections to the grid by the end of June this year, almost the total number of installations made last year, which was 35,139 systems. In investments, the volume is already close to R$ 4 billion generated by the distributed renewable energy market in 2018, according to a study by Grenner, referring to the first half of the segment in 2019.

Increase in the Number of Renewable Energy Installations According to Grenner

Numerous factors can be pointed out for this significant increase in the number of renewable energy installations. One of them is the greater availability of financing options for solar energy from public and private banks. With very attractive rates and terms, these lines of credit have allowed more consumers to generate their own energy, especially companies, being the payment method chosen by 39.6% of them, according to the Grenner study.

For experts in the segment, the 12% drop in solar kit costs reflected in the first half, and on the other hand, the high price of energy in Brazil have contributed to thousands of consumers opting for solar energy in their homes or businesses.

Changes in the Rules in the Renewable Energy Sector by Aneel

The distributors, who lose more revenue each year due to the new “prosumers”, are dissatisfied and are already pressuring Aneel to change the rules of the segment. These possible changes, although not the end of the advantages in installing solar panels, may increase the payback period for renewable solar energy investments.

While the sector awaits a position from the agency, consumers are rushing to secure their renewable energy systems still under the current rules of Normative Resolution 482. Given this scenario, according to projections by the Brazilian Solar Photovoltaic Energy Association (ABSOLAR), the solar photovoltaic energy market is expected to reach R$ 5.2 billion in investments this year, generating about 15,000 jobs.