Solar energy has already surpassed R$300 billion in investments in Brazil, becoming the country's second-largest source, but is now running into cuts, billion-dollar losses, and a grid at its limit.

Solar energy has already surpassed R$300 billion in investments in Brazil, becoming the country’s second-largest source, but is now running into cuts, billion-dollar losses, and a grid at its limit.

Written by Romário Pereira de Carvalho

Published on 28/04/2026 at 16:13

Updated on 28/04/2026 at 16:14

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With R$300 billion invested and 68.8 GW installed, solar energy faces cuts, a R$6.5 billion loss, and transmission limits that halt connections and reduce photovoltaic projects in Brazil in 2025

With R$300 billion already invested, solar energy has reached 68.8 GW in Brazil, but cuts, losses, and transmission limits have reduced new projects in 2025 and put pressure on companies in the sector.

Sector became the country’s second-largest electricity matrix

The survey by Absolar includes power plants and generation systems installed throughout the country. With a 25.3% share in the national system, solar energy now holds the second position among electricity matrices.

The association also calculates that more than two million jobs have been created in the last decade. In the same period, companies in the market collected R$95.9 billion in taxes, showing the economic weight the segment has already achieved.

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Cuts affected solar and wind generation in 2025

The entity’s reaction came after the added capacity fell by 25.6% last year. The sector was affected by cuts determined by the ONS, which impacted 20% of the solar and wind energy produced in 2025.

The estimated loss for companies reached R$6.5 billion. The decline hit a market that had been accumulating investments, jobs, and revenue, but began to face operational restrictions on the grid.

Grid at its limit prevents new connections

The cuts occurred because the generation capacity exceeded the available transmission infrastructure. In states like Mato Grosso, Acre, and Rondônia, the grid has reached its limit.

In a statement to Aneel, the ONS indicated that, without a change in the current grid conditions, new solar generation connections will become unfeasible.

The restriction applies to both new users and expansions of existing systems.

Solar energy in Brazil: Photovoltaic projects have lost momentum

Residential solar panels remain, for now, without cuts. Even so, investments in new photovoltaic projects fell by 40% in 2025, impacting companies, contracts, and jobs in the sector.

Absolar points to company closures, contract cancellations, and a reduction in the number of people employed.

The scenario shows that the problem is not just in generation, but in the capacity to transmit the energy produced.

Entity advocates for new technologies

Based on the data, the association advocates for complementary technologies to support the expansion of solar energy in Brazil. Energy storage, data centers, green hydrogen, and electromobility are mentioned as possible paths.

The entity sees these fronts as conditions for a sustainable expansion of the sector in the country. The priority is to allow production to grow without being constrained by the current limits of the electrical infrastructure.

With information from Folha de São Paulo.

Solar energy has already surpassed R$300 billion in investments in Brazil, becoming the country’s second-largest source, but is now running into cuts, billion-dollar losses, and a grid at its limit.

With R$300 billion invested and 68.8 GW installed, solar energy faces cuts, a R$6.5 billion loss, and transmission limits that halt connections and reduce photovoltaic projects in Brazil in 2025

Sector became the country’s second-largest electricity matrix

Cuts affected solar and wind generation in 2025

Grid at its limit prevents new connections

Solar energy in Brazil: Photovoltaic projects have lost momentum

Entity advocates for new technologies

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Solar energy has already surpassed R$300 billion in investments in Brazil, becoming the country’s second-largest source, but is now running into cuts, billion-dollar losses, and a grid at its limit.

With R$300 billion invested and 68.8 GW installed, solar energy faces cuts, a R$6.5 billion loss, and transmission limits that halt connections and reduce photovoltaic projects in Brazil in 2025

Sector became the country’s second-largest electricity matrix

Cuts affected solar and wind generation in 2025

Grid at its limit prevents new connections

Solar energy in Brazil: Photovoltaic projects have lost momentum

Entity advocates for new technologies

The Soviet Union spent 22 years drilling into the Earth’s crust and reached a depth of 12,262 meters — they found water where it was thought impossible, hydrogen bubbling from the rock, granite that is 2.7 billion years old, and temperatures of 180 degrees that melted the drill bits.

Norway is drilling 27 kilometers of rock 392 meters below the bottom of a fjord to build the world’s largest and deepest underwater road tunnel — when completed, a 21-hour journey will be reduced to 10.

A German architect built a cylindrical house in 1994 that rotates to follow the sun throughout the day, generates 5 times more energy than it consumes, and was the world’s first energy-positive house.

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China has just successfully tested the world’s first ground effect maritime vehicle, a craft that flies up to 6 meters above the water at 200 km/h, uses quantum technology and 6G communication, and can rescue patients in the middle of the ocean.

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