🇧🇷 Solar Rebates & Incentives in Brazil

Lei 14.300/2022, enacted on 6 January 2022, established the legal framework for distributed generation (Marco Legal da Geração Distribuída) in Brazil, replacing the previous ANEEL Normative Resolution 482/2012. The law maintains net metering for residential, commercial, and industrial consumers, allowing surplus solar electricity to be credited against consumption. Systems installed before 7 January 2023 are grandfathered with full ICMS, PIS/PASEP, and COFINS exemptions until 2045. Systems installed after this date face a progressive Tarifa Fio B (grid usage fee) that escalates from 15% in 2023 to 27% in 2025, reaching full distribution cost by 2029. Brazil's solar capacity surpassed 55 GW in March 2025.

Under CONFAZ Convênio 16/2015, all Brazilian states exempt the ICMS (state goods and services tax) on the electricity generated and consumed on-site by distributed generation systems. The exemption applies to the energy credits (compensation) between what is injected into the grid and consumed from it, for systems under 1 MW capacity. Initially not all states adhered, but by 2018 all 26 states plus the Federal District had joined. For systems installed before January 2023, full ICMS exemption is grandfathered until 2045. Remote systems or those with consumption at different locations may be subject to ICMS taxation. Brazil's upcoming tax reform (Complementary Law 214/2025) will replace ICMS with new CBS and IBS levies, potentially affecting future treatment.

The Fundo Clima (National Fund on Climate Change), managed by BNDES under coordination of the Ministry of the Environment, is Brazil's main public climate finance instrument for renewable energy investments. After depletion during 2019-2022, the fund was reactivated in 2023 with R$ 630 million and expanded to R$ 10.4 billion in 2024. BNDES announced a R$ 20 billion green credit programme for solar and wind generation projects, with a focus on small and medium enterprises. The fund provides subsidised financing (below-market interest rates) for solar energy generation and distribution projects, technological development in the solar sector, and supporting the clean energy transition. R$ 15 billion in approvals projected for clean energy in 2025.

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.

Brazil's flagship social housing programme, Minha Casa Minha Vida (MCMV), was relaunched in February 2023 by President Lula with updated sustainability guidelines that promote the integration of solar energy systems in new housing developments. The programme now includes measures for the installation of solar panels, rainwater reuse, and ecologically correct building materials in affordable housing projects for low-income families. Solar integration reduces ongoing electricity costs for beneficiaries and contributes to Brazil's renewable energy targets. The programme targets families earning up to R$ 8,000 per month, with specific incentives for construction and renovation in both urban and rural areas.