Brazil Raises Solar Module Import Duties, Sparking Concerns in Energy Sector

Announced during COP 29 in Azerbaijan, the tariff hike contradicts Brazil's international climate commitments under the Paris Agreement, ABSolar stated. The decision awaits publication in the Official Gazette but is already causing significant alarm within the solar energy sector.

ABSolar conducted a survey revealing that 281 solar projects, totaling over 25 GW and valued at BRL 97 billion (USD 16.7 billion) in investments through 2026, are at risk. The tariff increase would render these projects financially unviable due to the automatic loss of tied financing, potentially leading to cancellations and disruptions in future investments.

Moreover, the critics argue that the federal government’s claim of promoting local industry lacks substance, as Brazil’s domestic solar panel manufacturers primarily assemble imported components.

With a production capacity of only 1 GW annually, domestic manufacturers meet just 5 percent of Brazil's solar panel demand. In comparison, the country imported over 17 GW of solar panels in 2023.

ABSolar emphasises that this measure could disproportionately harm small and medium-sized installation companies, pushing many to the brink of closure.

The organisation calls for the government to reconsider the decision to avoid undermining the renewable energy sector's growth and Brazil's broader sustainability goals.