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Home / News / Politics & Regulation / Court suspends ICMS collection on solar energy in Goiás

Court suspends ICMS collection on solar energy in Goiás

Decision temporarily suspends the application of the tax in the State, giving impetus to distributed generation projects 
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  • Photo by Henrique Hein Henrique Hein
  • January 30, 2025, at 08:50 AM
2 min 6 sec read
Court suspends ICMS collection on solar energy in Goiás
Photo: Freepik

The TJGO (Court of Justice of Goiás) suspended, on the night of this Wednesday (29), the collection of ICMS (Tax on the Circulation of Goods and Services) on solar energy in the State.

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The decision, of a preliminary nature, responds to a direct action of unconstitutionality proposed by União Brasil and MDB, parties led by Governor Ronaldo Caiado and Vice-Governor Daniel Vilela, respectively.

The agency understood that charging the tax is something that discourages investment by companies and consumers in promoting renewable, clean technology that generates savings and countless benefits for society.

“This is not yet the final decision of the Court of Justice of Goiás, but it is excellent news because it suspends this charge from now on, giving consumers and the distributed generation sector breathing room to continue their investments while the direct action of unconstitutionality continues its processing in the Court”, explained Bárbara Rubim, vice president of GD at ABSOLAR (Brazilian Association of Photovoltaic Solar Energy), in a video recorded on the entity's social networks.   

Understand the case

Last Friday (24), the political parties MDB and União Brasil, with the support of Governor Ronaldo Caiado and Vice-Governor Daniel Vilela, filed a direct action of unconstitutionality against the collection of ICMS by the distributor Equatorial-GO.

Talks with the State Government began in the first week of December, shortly after the distributor announced that it would begin charging the tax in the sector, something that had never happened before.

Equatorial held a workshop on November 28, 2024, where it announced that, starting December 1, it would charge ICMS in the State, including retroactively.

The start of the charge caused a major repercussion in the region by directly affecting the cost of DG, especially for productive sectors, such as agribusiness.

Following complaints from consumers, companies and industry representatives, the Government of Goiás announced that it would seek ICMS exemption for micro and mini solar generation.

On his social media, Governor Ronaldo Caiado even went so far as to record a video stating that the incidence of the tax on consumers who produce their own energy was an absurd charge.

ICMS tax on solar energy in Goiás is challenged in court

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Tax course GD (distributed generation) Goiás ICMS exemption
Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.
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