Brazil PIS/COFINS Federal Tax Exemption for Solar
Administered by Receita Federal do Brasil (Federal Revenue Service)
About this program
Brazil exempts distributed generation solar systems from federal PIS/PASEP and COFINS taxes on the electricity credits generated through net metering. These federal social contribution taxes normally apply to electricity consumption and would add approximately 9.25% to the cost of electricity. The exemption ensures that solar prosumers are not double-taxed on energy they produce and consume themselves. Systems installed before January 2023 retain the full PIS/COFINS exemption as a grandfathered right until 2045. This exemption, combined with the ICMS exemption, made solar distributed generation economically attractive across Brazil and contributed to the country's rapid solar adoption, reaching over 55 GW by March 2025.
Eligibility requirements
- Available to all Brazilian electricity consumers with distributed generation systems
- Must have a grid-connected solar PV system registered with the local distributor
- Applies to energy credits from net metering compensation
- Pre-January 2023 installations: full exemption grandfathered until 2045
- Post-January 2023 installations: exemption maintained under Lei 14.300/2022
- No minimum or maximum system size requirement
- Must be a micro- or mini-generation system (up to 5 MW)
- Future changes possible under tax reform (CBS replacing PIS/COFINS)
Official program page
Visit official websiteOpens in a new tab. Always verify details directly with the program administrator.