The Brazilian government has announced a significant increase in the import duty on solar modules, raising the tariff from 9.6% to 25%. The decision, criticized by the Brazilian Photovoltaic Solar Energy Association (ABSolar), may hinder the country's energy transition and disrupt ongoing solar projects.

ABSolar highlighted the potential consequences of the tariff hike, including increased costs for solar energy, reduced investments, job losses, and even company closures. The association warned that 281 solar projects, totaling over 25 GW of capacity and BRL 97 billion ($16.7 billion) in investments, are now at risk. Many of these projects could lose financing and become financially unviable.

"By making this decision during COP29, the government is contradicting its international climate commitments," ABSolar stated.

Critics argue the move undermines the development of Brazil's solar energy sector, as domestic manufacturers currently lack the capacity to meet demand. The national industry can only produce 1 GW of solar panels annually, far short of the 17 GW imported in 2023. Furthermore, local companies largely rely on imported components, limiting the measure's impact on industrial growth.

ABSolar emphasized that the policy would especially hurt small and medium-sized installation businesses, many of which could face closure.

While the government has yet to officially publish the new rules, the decision has sparked significant concern among stakeholders and may lead to revisions or further discussions on how to balance the energy transition with domestic industrial goals.

Source: pv-magazine.com