R$100 Million Will Be Invested in the Solar Energy Market of Minas Gerais

The Expectation for Investment in the Solar Energy Market in 2021 in Minas Gerais is 100 Million

Sicredi closed the year 2020 with over R$ 58 million released in financing for solar energy generation units in the state of Minas Gerais. It is a significant advance compared to the previous year, when R$ 12,600 were released for investments in solar energy. The expectation is that the numbers will continue to grow in 2021, surpassing R$ 100 million in investment in the solar energy market.

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The positive expectations are based on the entire growth potential of solar energy not just in Minas Gerais, but throughout Brazil. The Vice President of the Central Sicredi South/Southeast, Márcio Port, emphasizes that the sector is still underexplored in the country, indicating that there is still much room for expansion.

“Solar energy represents only 1.7% of our energy matrix. There is a lot of room to grow,” he adds.

Solar Energy Market in Minas Gerais Last Year

In 2020 alone, 652 units in the sector were financed in the 39 cities covered by Sicredi in Minas Gerais. The number is much higher than that recorded in 2019, which was 113 in Minas Gerais.

The cooperative financial institution, which currently has 44 branches in Minas Gerais, expects to reach 83 by the end of this year. Additionally, it plans to expand its area of operation to approximately 70 municipalities.

One of the factors in favor of the solar energy market in the state and in Brazil is the solar irradiation, which is higher than that in some European countries where the sector is more advanced.

According to data from the Brazilian Association of Photovoltaic Solar Energy (Absolar), the state ranks first in the distributed solar generation ranking, responsible for 19.6% of the Brazilian solar park. Another factor influencing this market and consequently the financing related to the solar energy segment, says the Vice President of the Central Sicredi South/Southeast, is the return on investment period, which is around five years. “The lifespan of the equipment is about 25 years,” he states.

Solar Energy Market in Brazil

The solar energy market set records in 2020, even during the pandemic. The installation of panels grew by about 70% last year, generating 7.5 gigawatts.

Although 2020 was a good year for the industry, it is worth noting that it is just the tip of an iceberg that has been growing for 10 years. This is due to the fact that the price of equipment has fallen by nearly 90% because of government incentives, making this technology increasingly accessible to consumers in general.