With the advancement of vaccination against coronavirus in Brazil, and in different parts of the world, a light at the end of the tunnel has come on.
Investors, professionals and consumers in the solar sector are optimistic and confident that the start of vaccination will positively impact the Brazilian photovoltaic market.
“With the arrival of the first doses of the vaccine, we noticed that the traders’ hope gained a boost. With the news of the first vaccinations, the change in customer sentiment can already be noticed”, reported Ricardo Rizzotto, owner of EOS Solar, a company specializing in the installation of photovoltaic systems.
The businessman also said that he was recently in Florianópolis talking to some local traders. The conversations showed that many entrepreneurs hope that before the middle of this year, things will return to normal.
“Companies will notice that, with or without a crisis, their electricity costs continue. Therefore, our sector will show even greater growth than in 2020”, he highlighted.
Who agrees with Rizotto is Guilherme Nagamine, executive director of L8 Energy. “The start of vaccination in Brazil will certainly have a positive impact on the solar market. Considering the psychological impact of seeing a light at the end of the tunnel, it already makes the market react more cheerfully and professionals start to act positively towards the recovery of the market”, stated the executive.
For Luís Lima, director of My Solar Home, with the start of vaccination there is a change in expectations from fearful customers. “It's just the beginning, but I realize that with its beginning there is a change in expectations. All fearful customers ask themselves: should I buy now? They also begin to feel that the problem is passing, that they will overcome it and will grow again. So, those budgets that were on hold, that didn't even start due to consumers' fears about the economy, are reactivated”, commented the executive.
“All these customers have now returned to a greater propensity to spend, buy, invest and we in the photovoltaic segment will be ready to support and provide these solutions”, he added.
Productive chain
Although the progress of vaccination in Brazil is viewed favorably, professionals and investors fear that a positive recovery will put further pressure on the production chain, which is currently suffering from a lack of raw materials and difficulties with maritime transport globally.
For foreign trade specialist Wendy Verjovsky, CEO of WM TRADING, the world systematically pursues the vaccine as an attempt to repair the collective trauma and damage proven by Covid-19.
She also emphasizes that the future is uncertain. “As it is unclear what will happen next month, companies are unable to create an action plan for the next three years and are therefore forced to act more slowly than they are used to. We noticed that there was an increase in solar sector projects in 2020, compared to 2019, but many projects were postponed and continue to be postponed in 2021”.
Edson Marasco, founder of MCM Solar Energy, a company representing Photofix, states that he is attentive to movements in the solar sector and is concerned about the impact of vaccination on the solar market. “I see variants impacting supply in general. Among them, the inconstancy of the exchange rate and the high cost of shipping from China. Everything will depend on the release of credits for the sector. I believe in a fundamental improvement six months after the start of vaccination in Brazil”, he comments.
Businessman Ricardo Rizzotto, owner of EOS Solar, is also concerned, but is confident that this year the sector will continue to expand. “The worrying factor for the sector's take-off is the considerable lack of materials and the absurd prices of peripherals, such as copper cables, aluminum, screws, among others. With the shortage and the rise in the dollar, prices doubled, causing customers who already had budgets to wait for the price to normalize. We need to focus efforts on increasing the supply of products in the sector, so that with low prices and confident consumers, we make 2021 the best year for solar”, highlights Rizzotto.
“For 2021, the perception is that factory production will be normalized. We are starting to enter a more regular rhythm and with products to serve the market with interesting prices and the availability of equipment to meet the positive expectations that are beginning to exist in our economy”, highlighted the director of Minha Casa Solar.
Adalberto Maluf, director of Marketing and Sustainability at BYD do Brasil, expects a significant increase in the sector with immunization against Covid-19 in Brazil. “Even with the pandemic, the solar photovoltaic sector is expected to grow by more than 50% in 2021. And with vaccination, the sector could surprise even more”, he states.
Even amid the pandemic, the photovoltaic DG (distributed generation) segment registered a strong increase. According to a survey by ABSOLAR (Brazilian Photovoltaic Solar Energy Association), the Solar energy generation grew 64% compared to 2019. In 2020, Brazil went from 4,6 GW to 7,5 GW of installed power.
