High exchange rate between the dollar and euro could affect the solar energy sector

The coronavirus outbreak and the rise in the dollar threaten to cool the solar energy sector, due to the reduction in input production and the increase in the exchange rate between the American currency and the euro, which directly impacts imports.

Aldo Pereira Teixeira, president of Aldo Solar, highlighted that the moment requires extreme attention from professionals in the sector and that the distributor is attentive to all movements.

“The exchange rate is just one of the elements in the strategic composition of prices. Other points must also be taken into consideration such as import costs, taxes, logistics, among others. In 38 years in the market, we have seen very different panoramas and learned from them. Every day, we seek to anticipate changing global scenarios, prepared to act quickly, even in moments of uncertainty like this”, highlighted Aldo.

Someone who is also paying attention and following the movement of the economy is the Country Manager of SMA, Pedro Paulo Alves. “The rise of the euro and dollar represents a serious threat to business development in the Brazilian photovoltaic sector.

Although there are protection measures against exchange rate volatility, these are still expensive in Brazil and this presents an additional difficulty that requires a lot of creativity, patience and, above all, a long term for business to continue and for entrepreneurs in the sector to overcome this difficulty. ”, commented Alves.

For Fronius, which has production in Austria, the volatility of the American currency did not have a significant impact. “We have some components that are imported from Asia, but our production center is entirely in Austria, so we have the situation under control. With the shortage in the market, especially of products coming from China, we feel a demand for Fronius products because we still have availability. It's obvious that it won't last long because the market is fast-paced and there is also this shortage, both of panels and inverters that come from China”, commented Alexandre Borin, commercial manager at Fronius.

Regarding the rise of the euro, the situation is a little more worrying, according to Borin. “Fronius do Brasil imports inverters from Fronius international and sells them in Brazil in local currency, so we are already suffering the impact on all the shipments we are clearing.

As we have local stock, when the exchange rate was a little more favorable, we will not pass on any increase. However, if this situation lasts for a few more weeks, with the rise in the euro exchange rate, we will have to pass on the increase to customers here in Brazil. However, we have not yet done a cost analysis of our product to pass on. Let’s wait a few weeks to see if the exchange rate stabilizes”, explained Borin.

Businessman Raphael Brito, founder of the Solarprime Franquias Group, is also paying attention to movements in the exchange rate between the American currency and the euro. “Initially, the rise in the dollar generates fear among investors, mainly because most of the components of a photovoltaic generator are imported.

But, on the other hand, other products and services consequently also increase, such as the electricity bill, impacting the consumer's fixed cost, without impacting in any way the viability of investing in a photovoltaic system, which remains very high. I don't believe the sector will suffer a significant impact. Brazilians are changing their culture regarding energy consumption, becoming increasingly free through solar energy”, said Brito optimistically.