Brazil Aims for a Solar Installation Rush

Brazil’s deployment of distributed generation PV (below 5 MWp) has exploded from a total capacity of 500 MW in 2018 to 7 GW by September of this year. The trigger for this increase, alongside rocketing electricity prices, was the 2019 proposal of law 5829. The proposal is expected to pass into law at the end of this year and will gradually introduce grid-access charges for residential and commercial system owners.

The new version of the proposed law was the result of a lengthy negotiation process. It aims to remove some of the grid-access privileges held by distributed-generation (DG) projects in Brazil. DG systems are currently exempt from grid charges when they benefit from Brazil’s current net-billing scheme. The scheme allows DG system owners to offset their energy bills with electricity generated on their rooftops and delivered to the grid. Law 5829 is now awaiting approval by the senate and is set to be published at the end of this year. High electricity rates exacerbated by the worst drought in almost a century in Brazil, low interest rates due to the Covid-19 crisis, and economic entities offering loans of five to 10 years to finance solar projects make solar PV an attractive investment option. The opportunity to avoid paying grid charges makes near-term installations even more attractive.

As most developers and end-users will rush to apply to build DG PV systems before the grace period ends, we expect that the annual installations for DG projects will peak in 2022 and 2023, with almost 6 GW of annual DG additions. As a result of the rush on project installations, we forecast intense installation activity in the PV sector that could result in as much as 37 GW of new additions over the 2021-2025 period. This is expected to split between 22 GW from DG projects and 15 GW in the utility-scale market.

PAND Residential Battery Energy Storage would be worked well with PV, which could be discharged for storage on daytime with PV panels where there is sunshine, also charged for offering electricity to electronics, or any other home appliances in use when there is emergency or outage or no sunshine (at night), where there is remote from grid, power plant with high electricity price. This is a good, safe, recycled and economical method of generation and storage of electricity for residents' daily activities without effect of Covid-19.

PAND Powerfree Series focuses on residential utility, cooperating with On-grid, Off-grid, DC/AC side, PV generation, which aims for once payment, sustainable utility for energy recycled on the earth.