A survey released this Thursday (15) by ABSOLAR The Brazilian Photovoltaic Solar Energy Association (Associação Brasileira de Energia Solar Fotovoltaica) indicates that 2025 was a year of contraction for the solar energy sector in Brazil. According to the organization, the market registered a 29% drop in added power, including large power plants and small systems on rooftops and land, with 10,6 GW in 2025 compared to 15 GW registered in the previous year.
Investments in new photovoltaic projects in 2025, both in centralized generation (CG) and distributed generation (DG), were also lower compared to the previous year, falling from R$ 54,9 billion in 2024 to R$ 32,9 billion, representing a 40% decrease between the periods.
In evaluating the ABSOLARThe market downturn is linked to the financial losses imposed on large generators, resulting from the lack of compensation for recurring generation cuts. In small and medium-sized photovoltaic systems, the main cause of the slowdown is connection obstacles due to alleged grid incapacity and power flow reversal, according to [source needed]. ABSOLAR.
Additionally, the Association points out that the national photovoltaic market faced an unfavorable macroeconomic scenario in the last year, such as high capital costs for credit, high dollar volatility, and high import tax rates on equipment.
Jobs, installed capacity and share in the energy matrix
Even with lower investment, the sector generated more than 319,8 green jobs in Brazil by 2025, spread across all regions of the country. Since 2012, solar energy has brought more than R$ 282,6 billion in accumulated investments and more than 1,9 million new jobs to the country.
Of the 10,6 GW added last year, distributed generation (DG) accounted for 7,8 GW, while centralized generation contributed an increase of 2,8 GW. In total since 2012, Brazil has 63,7 GW of operational solar power, with 43,7 GW from distributed generation and 20 GW from centralized generation.
The installed capacity of solar power in Brazil represents 24,5% of the installed capacity of the national electricity grid, positioning solar as the second largest source in the country, behind only hydroelectric plants – which hold more than 40% of the share.
Currently, large solar power plants operate in 27 Brazilian states, across all regions of the country. Accumulated investments in this sector since 2012 exceed R$ 88 billion, with revenue for public coffers surpassing R$ 29,1 billion.
In the distributed generation (DG) segment, during the same period, there were over R$ 196 billion in investments, R$ 59,7 billion in revenue, and more than 1,3 million accumulated jobs. This modality is present in all five regions of Brazil, and solar technology is currently used in 99,98% of all self-generation connections in the country.
Solar energy remains strong despite the downturn.
The CEO of ABSOLARRodrigo Sauaia points out that, even with the observed contraction in the solar market in 2025, photovoltaic energy continues to play a fundamental role in providing society with clean, competitive, and resilient energy, especially during periods of higher temperatures, increased demand, and lower levels of hydroelectric reservoirs.
“This scenario reinforces the importance of the sector advancing in innovation, efficiency, and new business models. The combination of solar generation with battery storage systems represents a strategic opportunity to expand supply, increase the security of the electrical system's operation, and contribute even more consistently to Brazil's development,” he said.
Sauaia added: "Solar energy has the lowest electricity generation cost in the country and helps increase the competitiveness of productive sectors, with greater savings and reduced costs for consumers in general."
For Ronaldo Koloszuk, Chairman of the Board of Directors of ABSOLARSolar energy continues to be an irreversible global trend and a central pillar in the decarbonization process of economies, including meeting the new demands of data centers, artificial intelligence, electric mobility, and artificial intelligence.
“The current moment demands that companies in the sector adapt, diversify their solutions, and explore new areas of operation, such as energy storage. Brazil possesses one of the best solar resources on the planet, which creates unique conditions for the country to consolidate itself as a global hub for clean energy and technological innovation,” concludes Koloszuk.
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