In March 2025, Brazil reached a historic milestone in the energy transition. According to updated data from National Electric Energy Agency (Aneel), the country surpassed the mark of 5 million properties with distributed solar energy generation connected to the power grid.
This number represents a significant leap compared to the reality of just over a decade ago, when the first microgeneration systems were authorized in Brazil, back in 2012. Since then, technological advances, falling installation costs and regulatory incentives have boosted the sector rapidly.
Minas Gerais leads expansion of residential energy
Although growth occurred throughout the country, Minas Gerais remains the leading state in number of connections, followed by São Paulo, Rio Grande do Sul, Paraná e Mato Grosso.
Furthermore, the advancement of distributed generation has intensified since the entry into force of Distributed Generation Legal Framework, in 2022. With it, consumers now have clearer rules for connecting their systems to the network, which increased legal security and reduced bureaucracy.
- Minas Gerais attracts R$387 million in investment for the construction of 14 solar energy parks
- Residential solar energy prices rise in Brazil, but are still cheaper than in 2024
- Researchers create solar coating that can be applied with inkjet to surfaces such as backpacks, cell phones and even cars
- GoVerde will invest R$9 billion in a methanol, green ammonia and solar energy factory in Bahia; project foresees up to 24 thousand jobs
Currently, most connections occur in homes, although businesses, industries, rural properties and public buildings have also increased the use of Photovoltaics in the last years.
Growth of solar generation and its impacts on the electricity sector
Over 5 million consumer units supplied by its own generation, the country reached an installed capacity of approximately 22 gigawatts (GW) only in distributed generation.
This number is equivalent, for example, to the entire installed capacity of Itaipu power plant, one of the largest hydroelectric plants in the world.
In this way, distributed solar generation begins to play a strategic role in diversification of the Brazilian energy matrix, which traditionally relies on water sources.
On the other hand, the challenges for the electricity sector are also increasing. With the increasing penetration of solar energy in distribution networks, utilities need to invest in technology, digitization and storage to ensure stability in supply.
Furthermore, managing the energy flow between consumers and generators is becoming increasingly complex, requiring new monitoring and automation solutions.
Photovoltaic energy as a driver of the green economy
The growth of solar generation distributed system also drives other economic sectors. According to market estimates, each new system installed generates between 3 to 4 direct and indirect jobs.
As a result, the advancement of solar energy in Brazil contributes not only to the decarbonization of the economy, but also to income generation, professional qualification and the internalization of clean technologies.
Another relevant factor is the impact on reduction of electricity bill of consumers. Those who generate their own energy can significantly reduce their electricity costs, especially in a scenario of rising tariffs and water shortages.
Perspectives for the coming years
For the coming years, the sector's expectation is to maintain its growth rate. This is because Brazil has great solar potential, in addition to a market that is still expanding.
With consistent public policies, accessible financing lines and increased environmental awareness, millions of Brazilians should embrace self-generation of energy.
Furthermore, the evolution of systems of energy storage, such as residential batteries, should further consolidate the leading role of distributed generation.
Thus, the combination of technological innovation, favorable regulation and society participation points to a more sustainable, decentralized and accessible energy future.