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Understand the challenges that still hinder the expansion of solar energy in Brazil, despite growth in the residential sector

Written by Deborah Araújo
Published 11/04/2025 às 21:51
Understand the challenges that still hinder the expansion of solar energy in Brazil, despite growth in the residential sector
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Despite the great potential, economic, regulatory and informational obstacles still hinder the popularization of solar panels in Brazil.

Solar energy has been gaining ground in Brazil in recent years, but it is still far from reaching its full potential. Even with the widespread incidence of solar radiation and the advancement of distributed generation technologies, the adoption of solar panels is still limited, especially among residential consumers and small businesses.

Recent studies show that the country is making progress in installing renewable energy systems, especially in rural areas and in the industrial sector. However, growth could be much greater if it were not for the obstacles that still impact the development of the sector.

Initial cost of solar energy systems is still high for a large part of the population

One of the main factors that hinder access to solar energy in Brazil is the initial cost of photovoltaic systems. Even with the gradual reduction in prices over the last few years, installing solar panels in homes still requires a high investment. On average, the cost of a system to serve a medium-sized home varies between R$15 and R$25.

Despite the existence of specific financing lines for renewable energy, many people are unaware of these possibilities or face difficulties in obtaining credit from financial institutions. The result is that access to solar energy is limited, especially to the upper social classes or companies with greater investment capacity.

Lack of consistent public policies and tax incentives

Another obstacle highlighted by industry experts is the lack of a continuous public policy to encourage solar energy. Although the country has had regulations that allow distributed generation since 2012, such as Normative Resolution 482 of the National Electric Energy Agency (Aneel), tax incentives and subsidies have not been sufficient to democratize the use of solar panels on a large scale.

The creation of Law No. 14.300/2022, which establishes the legal framework for micro and mini distributed generation, brought important advances, but also introduced additional charges for those who inject energy into the electricity grid. This change generated uncertainty in the sector and fear among consumers who were about to invest in renewable energy systems.

Charging fees for energy injected into the grid

The call “sun tax”, a term popularized in the sector, refers to the rates applied to energy generated by solar panel systems and shared with the public grid. The new rule, which will be implemented in stages until 2029, foresees that users will start paying for the use of the distribution infrastructure even when generating part of their own energy.

This charge has generated debate among companies and consumers, as it changes the expected financial return for those who invest in solar energy. For many, the new model reduces the attractiveness of the investment, which could slow down the expansion of renewable energy in the country.

Lack of information is still a relevant barrier in the solar energy sector

In addition to financial and regulatory obstacles, the sector also faces the challenge of misinformation. Many people are still unaware of how solar energy systems work, their economic and environmental benefits, or even how to start the process of installing solar panels in their homes or businesses.

The lack of educational campaigns and limited access to technical information make it difficult to popularize renewable energy. According to experts, there is room to expand awareness-raising actions and show how solar energy can be accessible and advantageous, including in the medium and long term.

Traditional infrastructure is still a priority

Historically, Brazil's energy matrix has always been heavily based on hydroelectric and thermoelectric plants. This consolidated structure ends up limiting more aggressive investments in alternative sources, such as solar energy, which still faces resistance from some sectors of the energy market.

Although Brazil is among the countries with the greatest potential for the use of renewable energy, the transition to more sustainable models depends on long-term strategic decisions and public policies that encourage the sector more broadly.

Sources: GROUND, Solar Portal, Orchard Manor e Dialogue Earth

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Deborah Araújo

I write about renewable energy, automobiles, science and technology, industry and the main trends in the job market. With a close eye on global developments and daily updates, I am dedicated to always sharing relevant information.

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