Connect with us

Hi, what are you looking for?

CleanTechnica

Clean Power

Multiple Brazilian States Implement ICMS Tax Exemption For Net-Metered Solar PV Systems

The Brazilian states of São Paulo, Goias, Permambuco, and others, have implemented the previously approved (under Convention 16/15) exemption from the ICMS tax for net-metered solar photovoltaic (PV) systems, as of September 1, according to recent reports.

According to many analysts, the ICMS had functioned as something of a development barrier for the distributed solar energy industry (as well as the wider solar industry) in the highly populous emerging market.

brazil flag

For some background here, the tax exemption was approved in the states of Pernambuco, São Paulo, and Goias last April; and in the states of Ceará, Tocantins, and Rio Grande, and the months following that first approval.

As ICMS tax collection/implementation is the job of the individual Brazilian states — with regard to electricity generation projects affected by net-metering rule 482, relating to the National Electrical Energy Agency — it’s the states’ responsibility to provide exemptions where there is reason to, not the federal government.

The new agreements don’t just provide for ICMS tax exemption, it should be noted, but also pave the way towards the introduction of greater governmental support for net-metering programs.

It’s been reported that the National Electrical Energy Agency (ANEEL) is now researching means of potentially reducing the bureaucracy surrounding net-metering projects/programs — this is in addition to efforts to expand the current setup to encompass projects up to 5 megawatts (MW) in capacity.

Previous estimates from ANEEL have put the possible cap for Brazil’s net-metering project capacity by 2024 as 2 gigawatts (GW). This would rely of course on improvements to current programs. As it stands, the country is home to only around 10 MW in net-metered solar PV project capacity.

 
Check out our brand new E-Bike Guide. If you're curious about electric bikes, this is the best place to start your e-mobility journey!
 
 
Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Advertisement
 
Written By

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy.

Comments

You May Also Like

Autonomous Vehicles

Cars that need no human driver are coming next year, Elon Musk says -- again.

Agriculture

Industrial soybean farming is causing destruction and conflict in Brazil, in part driven by EU biofuel policies. Community leaders from Brazil are asking EU...

Clean Power

In this post, I’ll cover how electricity from a new Texas residential solar system is already cheaper than grid electricity costs. I previously wrote...

Clean Power

There have been attacks on solar net metering for a decade or more, due to the fact that net metering shifts revenue and profit...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.