Brazil installed 6.4 GW of distributed solar capacity between January and September 2025, a 12% decline from the same period in 2024, and current installation rates point to around 8.5 GW for the year as residential and commercial segments weaken and regulatory reporting delays persist.
Between January and September 2025, 6.4 GW of distributed generation capacity was added, marking a slowdown compared to the same period in 2024, when 7.3 GW of distributed solar capacity was installed. If the pace of the first three quarters continues, distributed generation is expected to add a total of 8.5 GW by 2025.
This would be the first year since 2010 in which annual additions of distributed generation capacity fall below the previous year’s level.
The latest system connections may not have been registered by the National Electric Energy Agency (Aneel), and the market believes that the figures are generally about three months behind schedule.
As in previous years, the residential segment drove distributed generation growth in 2025, with 3.5 GW connected to the grid between January and September. This was followed by commercial systems, with 1.5 GW, rural systems (734 MW) and industrial systems (497 MW).
In 2024 there were 3.9 GW in residential systems, 1.9 GW in commercial systems, 788 MW in rural systems and 615 MW in industrial systems.
In other words, while the residential segment saw a 10% decline in added capacity between January and September 2025 compared to the same period in 2024, the commercial segment saw a 21% decline. The decline at rural installations was 6% and at industrial installations 19%.
It is worth remembering that 2025 was the year with the greatest opportunities for high-voltage consumers to migrate to the free market, which specifically includes small businesses and industries. The eventual opening to low-voltage consumers in the coming years could provide an alternative for consumers who might choose to invest in distributed generation systems.
In 2024, 5.2 GW were installed in on-site consumption systems, 1.5 GW in remote self-consumption systems and 545 MW in shared generation systems from January to September.
Between January and September 2025, São Paulo again led new installations, with a connected capacity of 830 MW. Minas Gerais returned to a leading position, adding 687 MW, followed by Paraná with 600 MW. By region, the South East led with 2 GW, followed by the North East with 1.5 GW, the Central West with 1.2 GW, the South with 982 MW and the North with 638 MW.
During the same period in 2024, São Paulo was the only state to add more than 1 GW, for a total of 1.2 GW from January to September. Paraná followed with 672 MW and Minas Gerais with 654 MW. By region, the South East added 2.4 GW, followed by the North East with 1.7 GW, the Central West with 1.4 GW, the South with 1.1 GW and the North with 639 MW.
In 2025, the Northeast region surpassed the South in accumulated distributed solar generation capacity. By the end of 2024, the South had reached 7.9 GW of additional capacity since 2009, while the North East had 7.7 GW. Today, the Northeast has accumulated 9.2 GW, compared to 8.9 GW in the South.
In total, Brazil has 43 GW of distributed solar capacity in systems up to 5 MW. Combined with 19 GW from centralized large-scale PV installations, the country now has 62 GW of photovoltaic capacity in operation.
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