São Paulo shines as Brazil’s solar leader with 4 GW+.

By Oliver Townsend Jun 22, 2024
São Paulo Leads Distributed Solar Generation in Brazil with Over 4 GW of Installed Power.pngOrginal image from: https://solarquarter.com/2024/06/22/sao-paulo-leads-distributed-solar-generation-in-brazil-with-over-4-gw-of-installed-power/

The state of São Paulo has become a trailblazer in distributed solar generation (DG) in Brazil, boasting an impressive over 4 GW of installed power, making up 14% of the national production. São Paulo is followed by Minas Gerais (3.7 GW), Rio Grande do Sul (2.7 GW), and Paraná (2.6 GW) in terms of installed power, according to the latest data from the National Electric Energy Agency (Aneel) and the Brazilian Photovoltaic Solar Energy Association (Absolar).

São Paulo’s Leadership in Distributed Solar Generation

Distributed generation comprises microgeneration and minigeneration systems (up to 5 MW) installed in residences, businesses, industries, rural properties, and public buildings. São Paulo’s dominance in this sector can be attributed to its position as Brazil’s largest consumer market and favorable legislation. Legislative Decree 2,531/22, implemented since late 2022, exempts microgenerators, minigenerators, and solar energy generation centers from the circulation tax, significantly boosting solar energy production in the state.

Impact of Legislative Changes

Leandro Kuhn, the executive director of the L8 Group, highlighted the positive impact of this legislation on the solar energy sector in São Paulo. The L8 Group, known for its expertise in the industrialization and distribution of photovoltaic systems through its subsidiary L8 Energía, recently moved its distribution operations from Paraná to São Paulo to better serve the increasing demand in the state.

Consumer Benefits and Sustainability

Approximately 2.6 million grid-connected photovoltaic systems are operational nationwide, with 79% located on residential properties. Commercial and service sector installations make up 10.51%, while rural properties account for 8.65%, according to Absolar. Consumers are increasingly investing in distributed generation systems due to economic benefits such as reduced electricity costs, environmental sustainability, and decreased reliance on regulated market operators.

Future of Solar Energy in Brazil

Decentralization of electricity generation is becoming a key strategy to meet future electricity demands in urban areas. Distributed generation not only boosts the installed power of the National Interconnected System (SIN) but also provides consumers with energy independence, ensuring self-production even during temporary shortages. Photovoltaic energy now stands as the second-largest source in Brazil’s electricity matrix, with 41.8 GW of installed power, representing 18.2% of the country’s total electricity production.

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