Brazil solar policy needed to support domestic manufacturing - Absolar

Facebook
Twitter
LinkedIn
Reddit
Email

Brazil must establish a “specific industrial policy” for domestic PV manufacturing so it can produce the 2GW of solar equipment necessary to operate 61 solar plants planned for 2017, according to the Brazilian Association of Photovoltaic Solar Energy (Absolar).

Rodrigo Sauaia, executive director of the trade body, welcomed the sale of 1,043MW of solar energy in the latest solar auction held on 28 August, along with the 1,048MW taken on the previous year.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

However he said: “Without industrial policy, manufacturers who want to settle in Brazil will not be able to compete in terms of price. The equipment produced in Brazil without the support of an industrial policy is much more expensive than international equipment because of excessive tax burden on inputs and machinery.”

He said the federal government needs to work closely with Absolar to structure the policy, which could be specific to the solar industry or brought in through the previous government’s incentive programme for the semiconductor industry, the Programa de Apoio ao Desenvolvimento Tecnológico da Indústria de Semicondutores (PADIS).

Currently, PADIS only affects 20% of inputs and machinery of the solar industry, leaving 80% of components to suffer taxes at rates between 40% and 60%, Sauaia added.

Furthermore the Brazilian Development Bank (BNDES) is only offering financing to players that follow a progressive nationalisation plan for equipment manufacturing:

  • From 2014 all modules must be assembled in Brazil

  • From 2018 junction boxes, inverters and support structures also need to be nationalized

  • From 2020, all photovoltaic cells must be produced in country

In talks with the Ministry of Mines and Energy, Absolar has also recommended that the next auction’s contracts have a period of 25 or 30 years, compared to the current 20 years, because this would set the term of the agreements for the life of the equipment and allow for extension of term financing.

Sauaia said: “Longer terms and longer contracts give more security for entrepreneurs.”

He added that this measure would even favour moderate tariffs.

Finally, Sauaia said it is positive that states, which did not compete in the 2014 auction, had competed in the latest auction and still managed to win competitive contracts.

This month SunEdison was reported to be building a PV module assembly plant in Brazil, with a decision on the capacity and location due in the next few weeks.

In August, Brazil’s largest solar panel manufacturing facility of 180MW was also inaugurated by manufacturer Globo Brazil, providing a major boost towards financing domestic PV projects.

Read Next

May 20, 2026
HD Renewable Energy has partnered with Greensteel Australia to establish a long-term renewable energy partnership for green steel production.
May 20, 2026
Edify Energy has reached financial close on the 720MWp Smoky Creek and Guthrie's Gap solar power stations in Central Queensland, Australia.
May 19, 2026
Michigan power utility DTE Energy has issued a tender for 1GW of new solar PV and wind power projects across the state.
May 19, 2026
JinkoSolar has partnered with PM Green to supply 200MW of modules, as part of a broader collaboration covering up to 1GW of capacity. 
May 19, 2026
Alex Barrows and Molly Morgan of CRU lay out their predictions for the biggest themes at this year's Intersolar Munich and SNEC conferences.
May 19, 2026
Inox Clean Energy has completed the acquisition of US solar manufacturer Boviet Solar Technology in a deal valued at around US$750 million.

Upcoming Events

Solar Media Events
May 20, 2026
Porto, Portugal
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Upcoming Webinars
May 27, 2026
9am BST / 10am CEST
Media Partners, Solar Media Events
June 2, 2026
Johannesburg, South Africa
Media Partners, Solar Media Events
June 3, 2026
National Exhibition and Convention Center (Shanghai)