According to a recent report by the International Solar Energy Society (ISES) in pv magazine, Brazil is making significant strides in its renewable energy sector. The country currently boasts over 85% renewable electricity, primarily derived from hydropower, but with an increasingly substantial contribution from solar and wind power. With over 2.3 million rooftop photovoltaic (PV) systems already installed and a vast untapped potential of more than 90 million consumer units, Brazil is experiencing a rapid adoption of solar energy. This trend can be attributed to favorable energy policies and the availability of cost-effective PV technology, which are driving the widespread adoption of solar power throughout the country.
In 2023, Brazil witnessed a remarkable surge in photovoltaic (PV) adoption, with a monthly growth rate exceeding 1 GW, of which 70% constituted rooftop PV installations. As a result, the cumulative installed PV capacity in the country surpassed 37 GW. The deployment rate of PV systems reached an impressive 60 watts per person per year, indicating a rapid pace of expansion. At this rate, Brazil’s installed PV capacity is poised to double every two years, underscoring the nation’s commitment to scaling up its solar energy infrastructure.
Due to favorable net metering legislation, escalating conventional electricity tariffs, and a sustained decline in the cost of photovoltaic equipment, solar PV has emerged as the second most significant contributor to Brazil’s electricity generation mix. While hydroelectric power remains the dominant force in the market with an installed capacity of nearly 110 GW, constituting 49% of the country’s electricity generation capacity, solar PV has made significant strides, moving from fifth to second place in the past year with 37 GW (17%). This is followed by onshore wind at 29 GW (13%) and biomass, primarily derived from sugarcane bagasse and biogas, contributing an additional 17 GW (8%) to the energy mix. Collectively, these renewable sources now make up over 85% of Brazil’s electricity generation capacity, totaling 225 GW.
Solar PV and wind energy have emerged as the most cost-effective power generation technologies in recent years. According to Figure 2, the price trajectory of PV in national energy auctions within the regulated electricity market has witnessed a significant decline. Starting at over $100 per megawatt-hour (MWh) in 2013, the price has steadily decreased to $32/MWh by 2022. In 2019, there was a notable dip, with prices reaching slightly above $20/MWh. This trend highlights the remarkable cost reductions achieved in the solar PV sector, making it an increasingly affordable and attractive option for electricity generation.
The electrification of transportation, heating, and industry, along with the production of green hydrogen, is anticipated to drive the demand for large-scale solar PV in the future. Brazil, with its well-developed energy market, abundant solar and wind resources, and close proximity to export markets in Europe, is poised to become a global leader in producing low-cost hydrogen (H2) and ammonia (NH3). This favorable combination of factors positions Brazil to offer some of the most competitive prices for H2 and NH3 on a global scale.
When it comes to distributed generation, solar PV stands out as the most economically viable technology. Its levelized cost of electricity (LCOE) is significantly lower than distribution utility tariffs across the country. This cost advantage translates into relatively short payback periods for residential rooftop PV systems, typically ranging from three to five years. The exact payback time depends on factors such as the local solar radiation resource availability and the retail tariff set by the local distribution utility. Overall, solar PV offers an attractive financial proposition for residential users, making it a compelling choice for decentralized electricity generation.
Out of the 93 million consumer units (representing potential rooftops) in the country, only a small fraction, less than 2.5%, currently have rooftop PV systems installed. However, thanks to favorable legislation that permits remote self-consumption, around 3.6 million consumer units are benefiting from the energy credits generated by approximately 2.3 million net-metered rooftop PV installations. This progressive legislation has made solar PV the most inclusive and democratic option for electricity production. Even residents of multi-family, multi-story buildings can now reap the benefits of solar-generated electricity, regardless of whether the PV systems are installed on their own rooftops or elsewhere within the same distribution utility concession area.
