In January of this year, a legal framework for distributed micro- and minigeneration of energy was established under Law 14,300/2022. The text ensured that the sector's previous rules would be maintained until 2045 for existing solar installations and new customers within a 12-month window. Now, with only three months left in the year, the topic is back in the spotlight, as the deadline to secure benefits like exemptions from certain tariff components is fast approaching.
Among the most controversial points is what has become known as the “tax on the sun.” Under the new rules, anyone wishing to install solar panels in their home, small business, or plot of land will have to pay a distribution system usage tariff. The measure takes effect on January 6, 2023.
Who Will Be Affected?
According to Agência Senado, the legislation defines microgenerators as those generating up to 75 kW of energy through renewable sources (such as photovoltaic, wind, and biomass) in their consumer units (including roofs, land, residential communities, and small farms). Minigenerators are defined as those producing more than 75 kW and up to 10 MW from renewable sources.
Since solar panel installation is the most common way to generate renewable energy for residential and small business use, the new rules will primarily affect this audience.
How Does It Work Today?
Since April 2012, Brazilians have been allowed to generate their own energy and feed the surplus back into the local distribution grid, sharing power with other consumers. This surplus is returned to the client as credits that can be used to offset future energy bills.
Currently, one of the main incentives for these energy generators is the exemption from distribution grid fees, system charges, and energy losses. Both charges, which are already billed to other users, will now also be required from those who generate their own power.
Regulatory Framework
Despite ending a major benefit, the law was well received by the solar sector because it provides greater legal certainty, according to the Brazilian Association of Photovoltaic Solar Energy (ABSOLAR). The association also states that the changes are more favorable than those in other regions currently revising their regulations, such as California, Nevada, and the Netherlands.
Cruze, a solar energy startup based in Piauí, emphasizes that the framework brought new opportunities for consumers, "such as prioritizing the allocation of energy generated across consumer units, transferring credits to other units under the same ownership, and offsetting credits produced during months of lower energy generation."
The startup also shared data from the Association of Large Industrial Energy Consumers and Free Consumers (Abrace) showing that Brazil has the second most expensive electricity bills in the world, behind only Colombia. For this very reason, the company believes that "those who cannot plan their investment for this year will not lose out. After all, the trend for energy tariffs in Brazil is only to rise, and renewable energy will remain an excellent option, offering quick returns and low maintenance costs."
Via CicloVivo.
This article was written by Marcia Sousa. The translation is powered by AI.
