Bolsonaro blocks Brazilian import tax breaks for solar components

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Bolsonaro’s block of a solar-friendly bill comes despite his government’s broader policy support to the industry. Image credit: Familia Bolsonaro / Flickr

Brazilian president Jair Bolsonaro has overturned a measure that would have eased the importing of solar components, potentially impacting suppliers increasingly targeting the country.

In recent days, the controversial head of state vetoed a bill that would have exempted solar components including PV cells from a 10% imports tax.

The text – already approved by Brazil’s Chamber of Deputies and its Senate – is now being blocked on grounds of “public interest and unconstitutionality”, Bolsonaro said.

The president said he had reached the decision after consultations with Brazil’s Economy Ministry, which warned the bill constituted a breach of national legislation.

“Despite the legislative proposal importing Union revenue decrease, there is no indication of the corresponding compensatory measures for budgetary and financial adequacy purposes,” the Ministry is claimed by Bolsonaro to have said of the bill.

The setback for the MP proposing easier solar imports – social-democrat Ataídes Oliveira – comes as both the industry’s developers and the manufacturers supplying them set their sights on Brazil.

The country has drawn eyes this year thanks to solar’s bullish performance at government auctions, which together with free-market plays is fuelling a rise of large-scale PV ventures.

PV manufacturers, including the dominating Chinese players, are acting to seize the window created by the need to supply to ever-larger projects.

During a China visit earlier this year, module maker GCL-SI walked PV Tech through its plans to take shipments to Brazil from 260-270MW in 2018 to 500MW-600MW by 2020.

The firm told this publication betting on pricier bifacial products would help it stay ahead of the “10 to 20” Chinese rivals, with some competitors using low prices to secure a slice for the Brazilian market.

Large-scale solar shipments could yet benefit from import tax breaks, despite Bolsonaro’s move. As MP Oliveira said on social media, the president’s veto can be quashed by Brazil’s National Congress.

Bolsonaro’s block of a solar-friendly bill comes despite his government’s broader policy support to the industry.

Contacted for a recent PV Tech Power feature, Brazilian operators explained it was PV’s repeated cost drops that convinced Bolsonaro’s team to include it, in an industry first, in the A-4 auctions.

The feature examining the opportunities and risks of Brazilian and Mexican PV was part of PV Tech Power's Volume 20, which you can subscribe to here.

The prospects and challenges of Latin American solar and storage will take centre stage at Solar Media's Energy Storage Latin America, to be held in Colombia on 28-29 April 2020.

Read Next

PV Tech Premium
September 13, 2021
Following the release of the US Department’s Solar Futures Study, Liam Stoker assesses the downstream and upstream trends that must be realised for US solar to fulfil its potential.
September 9, 2021
A letter co-signed by more than 750 US organisations has called on US Congress to push through policies to significantly ramp up renewables deployment in the country.
September 8, 2021
Sonnedix, Opdenergy and Canadian Solar were among the five successful bidders in Chile’s latest power auction, which took place yesterday (7 September) and will see the country support 2GW of renewables and storage installations.
PV Tech Premium
September 7, 2021
Liam Stoker reflects on DNV’s Energy Transition Outlook as the consultancy laments the “missed opportunity” of the pandemic to reset global decarbonisation efforts. With COP26 just two months away, is terawatts of growth enough?
September 1, 2021
Vietnam officials have teased new details of a scheme designed to replace the country’s successful solar feed-in tariff (FiT) policy.
September 1, 2021
The new edition of PV Tech Power is now available to download, including comprehensive coverage of supply chain issues disrupting the solar sector, learnings from our bankability ratings and much more.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021