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Federal government imposes taxes on imports of solar modules and wind turbines and increases imports.

Written by Paulo S. Nogueira
Published 12/12/2023 às 14:38
rate, tariff, imports, Wind turbine, Photovoltaic solar energy, MDIC, Common External Tariff (TEC)
Photovoltaic module manufacturing in China (Photo: Jinko Solar Disclosure) – All rights: EPBR
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New version: Tariff of 10,8% for solar energy valid in 2024, photovoltaic modules exempt until 2027; installed capacity and imports of 11,2%.

From January 2024, wind turbines up to 7,5 MW and assembled photovoltaic modules will be subject to an import tariff of 10,8%, in accordance with the decision of the Executive Management Committee of the Chamber of Foreign Trade ( Gecex-Camex) released this Tuesday. The measure, linked to the Ministry of Development, Industry, Commerce and Services (MDIC), aims to ensure that similar production in the Brazil be valued.

The justification for imposing the import tariff is that the country already has production capacity for assembled modules and wind turbines. With the application of the tariff, the national industry will be able to benefit and strengthen its position in the market, contributing to the development of the renewable energy sector. The measure is also a way to promote the growth of Brazilian **imports** in the clean energy segment.

Import of wind turbines and solar panels will suffer tax increase

And the import of wind turbines and solar panels will have a significant tax increase from 2025. All purchases made abroad will have to pay 11,2% import tax, which will directly impact the import of power generation equipment. centralized solar energy.

The decision will have a direct impact on imports of wind turbines and solar panels, with the expectation of revoking 324 former solar panel tariffs that had the tariff reduced to zero. Furthermore, exemptions for any power will only be granted upon proof that there is no equivalent national production.

For imports of wind turbines and solar panels, the tax will be collected in a transition period, with decreasing exemption quotas until 2027. The quotas will be:

  • US$1,13 billion between January and June 2024;
  • US$1,01 billion between July 2024 and June 2025;
  • US$717 million between July 2025 and June 2026; It is
  • US$403 million between July 2026 and June 2027.
  • Impact on imports of wind turbines and solar panels

    The import of wind turbines and solar panels in Brazil corresponds to 99% of all modules used, with the majority being imported from China. In 2022, imports of wind turbines and solar panels totaled US$5 billion, highlighting the relevance of this market in the country.

    The measure also affected the capacity installed 11,1 GW of centralized solar energy and 25 GW of distributed generation. Furthermore, Gecex-Camex increased the minimum capacity of wind turbines exempt from import tax from 3,3 MW to 7,5 MW, with the exemption lasting one year, aiming to boost internal production of this equipment.

    'It was found, however, that Brazilian companies are already able to produce above this limit or have plans to do so in the short and medium term', stated the organization, highlighting the potential for development of the national production chain.

    The vice-president and minister of Development, Industry, Commerce and Services (MDIC) Geraldo Alckmin highlighted the strategic importance of the production of solar energy generation equipment for the country, highlighting its contribution to energy security and the ecological transition for an economy low carbon.

    Outlook for the wind and solar energy sector

    Studies by the National Electric Energy Agency (Aneel) point to an average annual growth of 9,4 GW in installed capacity in the country, between 2023 and 2026. According to sector calculations, each increase of 9,4 GW would lead to the creation of 19 thousand jobs throughout the production chain, 6,5 of which in module production alone.

    Source: EPBR

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Paulo S. Nogueira

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