Brazilian PV association ABSolar says the Brazilian government’s decision to increase import duties on solar panels from 9.6% to 25% could delay the country’s energy transition and negatively impact ongoing projects.
The Brazilian government this week increased import duties on solar panels from 9.6% to 25%.
According to Brazilian PV association ABSolar, this measure could undermine the country’s energy transition, potentially raising solar costs, leading to capital flight, higher inflation, job losses and business closures.
The new rules have yet to be published in the Government Gazette.
“By deciding to increase excise duties midway through COP 29 in Azerbaijan, the Brazilian government is in contradiction with international obligations to combat climate change, especially those signed in the Paris Agreement and the United Nations Conference on Climate Change (COP),” the association said. said in a statement.
ABSolar claims that the tariff increase could lead to the cancellation of contracted projects and disrupt future investment plans.
In a survey among its members, ABSolar identified 281 high-risk projects, totaling more than 25 GW and BRL 97 billion ($16.7 billion) in investments through 2026. The higher import duties would make these projects financially unfeasible due to the automatic loss of financing linked to them.
“Contrary to what the federal government claims, the measure does not promote the densification of the national industry, as the national companies are only module assemblers, using fully imported components,” the association said. “On the other hand, the impact of the measure on small and medium-sized installation companies is great and they run the risk of having to close their doors.”
The national industry currently cannot meet more than 5% of Brazil’s solar panel demand, with a production capacity of only 1 GW per year. In contrast, Brazil imported more than 17 GW of solar panels in 2023.
This content is copyrighted and may not be reused. If you would like to collaborate with us and reuse some of our content, please contact: editors@pv-magazine.com.
