Brazil publishes new net metering laws for distributed generation

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A distributed generation system in Brazil, which has had a favourable net metering policy for small-scale solar. Image: Canadian Solar.

Brazil has published its long-anticipated net metering laws that has introduced a new framework for distributed generation in the country and will see any solar PV systems below 5MW eligible for net metering tariffs until 2045.

Although a grid fee for prosumers will take effect from 2023, the distributed generation sector in Brazil is still expected to remain lucrative.

Law 14.300 comes into force in 2023 and has set the rules for distributed generation in the country for the next 23 years. The date of implementation means, however, that distributed generation systems installed in 2022 will not be subject to any additional fees.

Analysts have noted how the new laws have caused a surge of new small-scale solar projects in the country, with individuals and businesses keen to capitalise on the more favourable policy structure before January 2023.

The new law also ensures regulatory and legal certainty for owners of small scale solar PV systems, which is increasingly outstripping utility-scale solar in Brazil as a proportion of total generation.

Speaking back in September, James Ellis, head of Latin American research at BNEF, said the new law – which has remained largely the same since when Ellis spoke with PV Techwas a positive signal to Brazil solar market.

“The current text would leave Brazil’s generous net metering rules in place through 2045 for those who have solar systems already or who add them within 12 months of the law being enacted,” Ellis said.

PV Tech will be taking a closer look at the new net metering laws and Brazilian market in the next edition of PV Tech Power in February, with insights from analysts and companies working in the country’s solar sector.

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