As of April 2024, Brazil’s total installed solar power capacity reached an estimated 41.1 gigawatts (GW), representing approximately 18.0% of the country’s overall electricity matrix.⁵

Brazil’s solar energy market is expected to grow from 34.20 gigawatts in 2023 to 97.46 gigawatts by 2028, representing a compound annual growth rate (CAGR) of 23.30% during the forecast period.²⁹

Here are the average costs for some major sources:⁶⁷

• Natural Gas (LNG): Electricity prices in Brazil decreased in 2023 to $0.158 cents per kilowatt-hour for households and $0.145 cents per kilowatt-hour for industry.
• Hydropower: ranges from approximately $18 to $36 per megawatt-hour (MWh)
• Solar PV: average cost for consumers varies from $27 to $63 per MWh
• Wind Energy: costs range from $18 to $45 per MWh
• Biomass: costs range from $27 to $54 per MWh
• Coal: weighted average cost of electricity generation using coal-fired power plants in April 2013 was between 8.1 and 10.0 ¢$/kWh

Distribution of electricity generation in Brazil is given below ⁸

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• There are many power outages in Brazil per day.
• In 2022, the average duration of electricity outages in Brazil was 10.9 hours, down from almost 12 hours in 2021, which was the highest figure in a decade.

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Current Installations

Brazil has surpassed 2.3 million rooftop solar installations as of early 2023, with a significant portion being residential, marking a significant milestone in the country’s solar energy adoption.

Projected Installations

As of 2030, Brazil has potential to install more than 90 million rooftop PV systems.

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Installed Solar Farms

As of February 2024, Brazil had around 3,893 solar power plants,

Projected Solar Farms

13 Solar farms are under construction and 214 in the planning stages.

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Current Demand

• Despite hydroelectric power being Brazil’s primary energy source, limiting off-grid potential, a significant portion of the population remains without access to the power grid. Specifically:
• Approximately 3 million people, or 1.5% of the country’s population, reside in 270 isolated communities without grid access.
• Nevertheless, Brazil has made notable progress in rural electrification, achieving 92.6% electricity access through off-grid systems.
• The federal initiative, launched in 2003 to universalize power supply, has successfully served 3.5 million families, with investments totaling R$ 20 billion in off-grid infrastructure.
• By 2024, the program aims to expand its reach, serving an additional 400,000 families in rural regions, further bridging the energy access gap.

Projected Demand

Brazil’s plans to increase its share of nonhydro renewables, which includes off-grid arrays up to 5 MW.

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Current Demand

On-Grid Solar Market

As of March 7, 2024, Brazil’s solar photovoltaic (PV) capacity has attained a significant milestone of 40 gigawatts (GW), according to data compiled by the National Electric Energy Agency (ANEEL). This capacity is comprised of:

• 27.45 GW from distributed generation (DG) systems, representing residential and commercial rooftop installations
• 12.57 GW from centralized generation (CG) projects, encompassing large-scale solar farms and utility-level installations

Projected Demand ¹⁶¹⁷

Current Scenario: In 2024, Brazil is projected to have around 16.3–17.5 GW of PV demand, representing a 65% share in the Latin American region.

National Energy Plan (NEP 2050)

• Brazil’s 2050 National Energy Plan places significant emphasis on the role of solar photovoltaics (PV) in the country’s future energy mix.
• The plan projects that solar PV installed capacity will reach 27-90 gigawatts (GW) by 2050, with average generation expected to range from 8-26 GW.
• This represents a substantial contribution to the energy mix, with solar PV accounting for 5-16% of total installed capacity and 4-12% of total energy, excluding distributed generation (DG PV).
• These ambitious targets underscore Brazil’s commitment to expanding its solar energy capabilities and reducing its reliance on fossil fuels, aligning with global efforts to transition to a more sustainable energy future.

Worker of solar industry earn as follow:¹⁸

• Average Salary: 24,498 USD per year
• Lowest Average Salary: 11,844 USD per year
• Highest Average Salary: 37,746 USD per year

In 2023, the total population of Brazil was estimated at around 204.25 million.¹⁹

Estimate for Factory Rent

Industrial and Logistics Real Estate ²⁰

• Average asking rent: 4.14 USD per square meter

Commercial Properties (June 2019) ²¹

• Average lease price: 6.79 USD per square meter

Industrial Electricity Rates

Average Industrial Electricity Price: 144.54 USD per megawatt-hour.

Water Costs ²²

Average Cost of Water and Sewage: 1.035 USD per cubic meter.

Key Components of Administrative Costs

Salaries and Wages: ¹⁸

Worker of solar industry earn as follow:

• Average Salary: 24,498 USD per year
• Lowest Average Salary: 11,844 USD per year
• Highest Average Salary: 37,746 USD per year

Office Supplies and Equipment

Costs for office Stationary ²³

The average stationery product import price stood at $2,569 per ton in July 2023.

Following are the prices to setup an office in Brazil (Available for: 2016)

 Rent for Office Space ²⁴

If the administrative office is separate from the factory, rental costs for the office space;

• In 2023, São Paulo’s office rental market revealed significant disparities in pricing across districts.
• Itaim emerged as the most expensive district, with an average asking rent of $50.76 per square meter for class A office space – nearly triple the city’s average.
• Other high-end districts, such as Faria Lima and JK, also commanded premium rents, exceeding $36 per square meter.
• In contrast, Santo Amaro offered the most affordable option, with an average asking rent of just $5.76 per square meter.
• Other budget-friendly districts included Berrini, Marginal Pinheiros, and Chac. Sto. Antonio, all with rents below $18 per square meter, providing alternatives for businesses seeking more affordable office spaces.

Insurance ²⁵

• On average, each person in Brazil is estimated to spend US$13.70 on Property Insurance market in the same year.

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Electricity Generation

• In 2023, Brazil generated 91% of its electricity from clean sources.
• Hydropower dominated the energy mix, accounting for 60% of the total electricity generated.
• The share of wind and solar energy was 21%, significantly above the global average of 13%.
• Brazil relied on fossil fuels for just 9% of its electricity in 2023.

Transmission & Distribution

• Brazil’s transmission infrastructure is highly developed, featuring a national grid system that efficiently distributes electricity across the country.
• The grid operates predominantly at 230 kV and 500 kV levels, providing extensive coverage to all regions, including remote and rural areas.
• The grid is interconnected through multiple backbone systems, ensuring robustness and reliability.
• Plans include further expansions and upgrades to accommodate increasing energy demands and enhance grid resilience, with an emphasis on integrating more renewable energy sources.

Energy Access

• As of 2023, Brazil boasts nearly universal electricity access, with over 99% of its population having reliable access to electricity.
• This high level of access is consistent across both urban and rural areas, reflecting the country’s advanced infrastructure and comprehensive electrification efforts.

Energy Exports

• Brazil’s energy exports primarily consist of biofuels and electricity generated from renewable sources.
• The country is a significant exporter in the region, with key destinations including various countries in Latin America and beyond. Brazil’s focus on renewable energy enhances its role as a clean energy provider in the global market.

Brazil has implemented a range of regulations and policies to promote and regulate the production and use of solar panels, particularly within the Brazil solar energy market. Here are some key regulations surrounding solar panel production in Brazil:²⁸

1. National Electric Energy Agency (ANEEL) Regulations

• Distributed Generation Normative Resolution 482/2012: Allows consumers to generate their own electricity through solar panels and other renewable sources and feed excess energy back into the grid, receiving credits on their electricity bills.
• Normative Resolution 687/2015: Expands on Resolution 482 by simplifying the process for connecting distributed generation systems to the grid and increasing the limit for net metering from 1 MW to 5 MW.

2. Environmental Licensing

• Environmental Impact Assessment (EIA): Solar panel production facilities must conduct an EIA to assess potential environmental impacts and obtain the necessary environmental licenses from the relevant state or federal environmental agencies.
• Licensing Process: Includes the Preliminary License (LP), Installation License (LI), and Operating License (LO), each required at different stages of the production facility’s lifecycle.

3. Inmetro Certification

• Quality Standards: Solar panels and related equipment must meet quality and safety standards set by the National Institute of Metrology, Quality and Technology (Inmetro).
• Certification: Inmetro certification ensures that solar panels comply with Brazilian standards for performance and safety.

4. Import Tariffs and Tax Incentives

• Reduction of Import Tariffs: The government has reduced import tariffs on solar panels and components to lower the costs of solar energy projects.
• Tax Incentives: Programs like the Special Regime for the Incentive of Infrastructure Development (REIDI) offer tax exemptions for infrastructure projects, including solar energy installations.

5. Provisional Measure 998/2020

• Subsidy Reallocation: Redirects subsidies from the fossil fuel sector to the development of renewable energy projects, including solar energy. This measure aims to support the growth of renewable energy sources and reduce greenhouse gas emissions.

Brazil’s government has undertaken several initiatives to promote the production and adoption of solar panels. Here are some key government initiatives:

1. Programa de Desenvolvimento da Geração Distribuída de Energia Elétrica (ProGD)

• Objective: Launched by the Ministry of Mines and Energy, ProGD aims to stimulate the development of distributed generation systems, particularly solar photovoltaic systems.
• Support Measures: Includes financial incentives, regulatory support, and technical assistance to encourage the installation of solar panels by consumers and businesses.

2. Incentive Programs by BNDES (Brazilian Development Bank)

• Funding Support: BNDES offers various financing lines and credit programs to support renewable energy projects, including solar panel production facilities.
• Specific Programs:
  • BNDES Finem: Provides long-term financing for large-scale solar energy projects.
  • BNDES Automático: Supports small and medium-sized enterprises (SMEs) in implementing solar energy projects.

3. Special Regime for the Incentive of Infrastructure Development (REIDI)

• Tax Incentives: REIDI provides tax exemptions on certain federal taxes for companies investing in infrastructure projects, including solar energy.
• This reduces the overall cost of solar panel production and installation.

5. Provisional Measure 998/2020

• Subsidy Reallocation: Redirects subsidies from the fossil fuel sector to the development of renewable energy projects.
• This measure supports the growth of solar energy projects by reallocating financial resources to more sustainable energy sources.

7. Net Metering Regulations

• Normative Resolutions 482/2012 and 687/2015: Implemented by the National Electric Energy Agency (ANEEL), these regulations allow consumers to generate their own electricity through solar panels and feed excess energy back into the grid.
• This system of net metering provides financial incentives for the adoption of solar energy.

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Installed Projects

Janaúba Solar Complex

• Capacity: 1.2 GW
• Location: Minas Gerais
• Details: Developed by Elera Renováveis, spanning approximately 3,000 hectares, comprising 20 individual solar parks.

São Gonçalo Solar Facility

• Capacity: 608 MW in operation, 256 MW under construction (total 864 MW)
• Location: Piauí
• Details: Covers approximately 12,000,000 m², consisting of 2.2 million solar panels. It has undergone several expansions since its connection to the grid in early 2020.

Futura 1 Solar Complex

• Capacity: 692 MW
• Location: Juazeiro City, Bahia
• Details: Cost $639.6 million and employed 3,000 employees during construction. It meets the energy needs of 1.7 million people.

Sol do Cerrado Solar Park

• Capacity: 766 MW
• Location: Jaíba, Minas Gerais
• Details: Comprises over 1.4 million solar panels, created by Vale, costing US$590 million.

Helio Valgas Solar PV Park

• Capacity: 650 MW
• Location: Minas Gerais
• Details: Developed by Mercury Renew, ground-mounted solar project constructed in a single phase, projected to start producing energy in 2023.

Sol do Sertão Solar PV Park

• Capacity: 475 MW
• Location: Bom Jesus da Lapa, Bahia
• Details: Collaboration between EDF Renewables and Canadian Solar, $380 million investment.

SSM1&2 Solar PV Park

• Capacity: 320 MW
• Location: Rio Grande do Norte
• Details: Developed by Voltalia Energia do Brasil Ltd, completed in 2022, spanning 1,000 hectares with approximately 930,000 solar panels.

Future Projects

Serra Branca Solar Complex

• Location: Serra Branca, Paraíba
• Capacity: When fully completed, it is expected to have a capacity of around 1.1 gigawatts (GW).
• Details: The Serra Branca Solar Complex is one of the largest solar projects in Brazil and Latin America. It consists of multiple solar farms and is developed by several companies, including Canadian Solar and EDF Renewables.
• Operational Year: The complex is expected to be operational in phases, with some sections already operational and others under development.

Pirapora Solar Complex

• Location: Pirapora, Minas Gerais
• Capacity: The complex has a total installed capacity of around 400 megawatts (MW).
• Details: Developed by Enel Green Power, the Pirapora Solar Complex is already operational but has expansion plans that could add more capacity in the future. It is one of the largest operational solar complexes in Brazil.
• Operational Year: The Pirapora Solar Complex has been operational since 2017, with ongoing expansion plans to increase its capacity.

Sobral Solar Complex

• Location: Sobral, Ceará
• Capacity: The project is expected to have a capacity of approximately 83 MW.
• Details: This solar complex is under development by Atlas Renewable Energy and will contribute to the growing renewable energy infrastructure in Ceará.
• Operational Year: The Sobral Solar Complex is also under development with specific operational phases expected to be announced as construction progresses.

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Enel Green Power

• Website: Enel Green Power
• Services: Enel Green Power is a global leader in renewable energy and operates in over 30 countries. They focus on developing, constructing, and managing renewable energy plants, including solar, wind, geothermal, and hydroelectric projects.
• Major Projects: Includes the Pirapora Solar Complex in Brazil (400 MW), and various solar projects across Europe, North America, and Latin America.

Canadian Solar Inc.

• Website: Canadian Solar
• Services: Canadian Solar is one of the largest solar companies globally, specializing in the manufacture of solar PV modules and providing solar energy solutions. They also develop and operate solar power projects.
• Major Projects: Involved in the Serra Branca Solar Complex in Brazil (1.1 GW), and other large-scale projects in various countries.

Atlas Renewable Energy

• Website: Atlas Renewable Energy
• Services: Atlas Renewable Energy develops, builds, and operates renewable energy projects, with a focus on solar and wind power. They specialize in bringing sustainable energy solutions to Latin America.
• Major Projects: Developing the Sobral Solar Complex in Brazil (83 MW), and other solar projects across Chile, Uruguay, and Mexico.