The Brazilian government enacted the long-awaited Law 14.300. The regulations have established a new regulatory framework for the distributed generation segment, which encompasses all renewable energy power generators under a net metering system smaller than 5 MW in size. More than 8.4 GW of Brazil's 13 GW of installed grid-connected solar capacity comes from this segment.
From 2023, the new laws will launch a new net metering regime, which means that PV systems installed this year will be exempt from the grid tariffs that will be implemented in January 2023. Despite the change, these grid fees will continue to ensure a respectable degree of profitability for Brazilian prosumers and will be steadily increased over time.
The new guidelines, according to Rodrigo Sauaia, president of ABSolar, the Brazilian solar association, would offer legal clarity by extending the net metering program until 2045.
The National Council for Energy Policy (CNPE) along with ANEEL, the energy regulator, will now have 18 months from the date of the law's publication to determine the guidelines, prices, and benefits of distributed generation to be implemented after the transition phase.
CNPE pointed out that the Brazilian laws to be implemented after the transition phase will help sustain the continued growth of distributed generating systems in Brazil, based on CNPE guidelines and Aneel's calculations. According to the agency, the lower remuneration levels for net metering rates might cut the payback time of a home PV system by only six months.
"For more than a decade, Brazilian regulations allowed for full offset of energy credits generated by distributed renewable generation. When we compare the new Brazilian regulations with good international implementations, we see that Brazil is well-positioned to spur its distributed generation development" said Vice President Barbara Rubim of distributed generation at ABSolar.