Solar Energy Triples Capacity in Brazil in One Year

RIO DE JANEIRO, BRAZIL – The total small solar energy generation systems, installed on the roofs of homes and businesses, reached 3 GW of installed power in the country, enough to supply 1.2 million homes, according to the Brazilian Association of Photovoltaic Solar Energy (ABSOLAR).

This type of power generation has tripled in Brazil over the past 12 months and has grown 45 percent over the past six months, despite the pandemic. There are currently 255,000 solar photovoltaic systems connected to the grid, which supply 319,000 consumer units, as the energy connections provided by the distributors are termed. In all, Brazilians have invested over R$15 billion (US$3 billion) in solar energy.

“The Brazilian solar photovoltaic sector has created 165,000 jobs since 2012, throughout all regions of the country. In the first five months of 2020 alone, the market created more than 37,000 jobs, despite the economic and health crisis caused by Covid-19,” says Rodrigo Sauaia, ABSOLAR’s president.

Residential projects account for seven out of ten solar panel installations in the country. In terms of installed power, however, sales and service companies are in the lead, with 39.5 percent of total capacity.

The potential for savings on the electricity bill is the main attraction of photovoltaic systems. According to Bárbara Rubim, CEO of Bright Strategies, in times of pandemic, solar energy has gained a new economic dimension by acting as a reducer of fixed expenses for businesses and other establishments. “The greater predictability that the consumer gains when deciding to migrate to solar generation is a key point, as they become shielded from the impacts of power company policies,” says Rubim.

The savings can be as high as 95 percent, depending on the region where the system is installed and consumer habits. However, the equipment is not cheap. A residential system, with a capacity of 2 kWp (unit that defines the maximum power of a photovoltaic panel), costs approximately R$14,000.

Several banks offer financing conditions aimed at the segment. In some cases, the installment amount can be lower than the energy saving. In other words, the system would virtually turn out to be free.

According to calculations by Portal Solar, a marketplace for solar energy equipment which runs a credit line with BV bank, the greatest beneficiaries are consumers with electricity bills above R$500. Considering a 72-month funding period, the installment of a small system would stand at around R$590. As the savings exceed 90 percent, consumers who pay around R$650 may offset the amount spent.

The advantage for small businesses is even greater. According to BV, a bakery, for instance, would pay an installment of R$1,850 reais to set up a system suited to their needs. The energy savings can be as much as R$2,500 per month.

Listed below are the prices of solar generation systems, according to output:

2.07 kWp System: R$14,550.36
3.45 kWp System: R$18,760.03
5.52 kWp System: R$24,012.82
8.28 kWp System: R$35,892.36
10.69 kWp System: R$44,279.92
16.56 kWp System: R$60,859.90
20.7 kWp System: R$73,752.67
52.44 kWp System: R$170,112.91
102.47 kWp System: R$332,535.26
310.5 kWp System: R$975,135.25

Source: Exame