Bolsonaro blocks Brazilian import tax breaks for solar components

Facebook
Twitter
LinkedIn
Reddit
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.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

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.

21 May 2024
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 21-22 May 2024, will be our third PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2025 and beyond.
15 October 2024
Santiago, Chile
The Summit will explore opportunities in countries such as Chile, Peru, Colombia, Argentina, Brazil and Mexico to name just a few. Key themes include policy & regulatory milestones, encouraging investment in the region, storage as a transmission asset, best practice for storage deployment, maximizing revenue from batteries and enhancing the supply chain.
26 November 2024
Málaga, Spain
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 10, 2024
Dallas, Texas USA
Solar Media Events
April 17, 2024
Lisbon, Portugal
Solar Media Events
May 1, 2024
Dallas, Texas
Solar Media Events
May 21, 2024
Napa, USA