Solar energy has changed the game: bill should guarantee rights against “taxation” of the Sun

The project will be presented to the National Congress immediately after the legislative recess.

O Solar Channel had an exclusive conversation last Tuesday (01/14/2020) with the deputy Lafayette de Andrada (Brazilian Republican Party), which drafted a bill on distributed generation (DG) energy compensation rules. 

The project aims to create rules that override the determinations of ANEEL (National Electric Energy Agency), bringing security to the solar sector and alleviating concerns regarding the uncertainties of the review of RN 482.

According to the deputy, “the rules [for distributed generation] will be maintained for two years, that is, the changes will take effect from January 2022 and will occur gradually and only in the B wire portion of the TUSD.” 

The deputy, who is the rapporteur of the Brazilian Electric Energy Code in Congress, spoke during the interview for the Solar Channel about what he calls the backbone of the bill (PL). The project will propose changes in three modalities: local microgeneration, shared generation and remote generation (solar farms).

“The bill is the result of a solid study involving all actors: ANEEL, Civil House, companies, associations and consumers. It was a collective-based construction, in which institutions were consulted and presented their arguments”, stated the deputy.

The project will be presented to the National Congress as soon as it returns from the legislative recess, at the beginning of February, and will be processed quickly in the house. “I am looking, together with Maia [Rodrigo Maia – President of the Chamber of Deputies] for the best regulatory alternative that will speed up the approval of the text”, added Lafayette.

Deputy Lafayette de Andrade (PRB), author of the bill that defends the maintenance of rights in the distributed generation of electricity. Photo: Disclosure

Main points of the bill (PL):

  • Anyone who has already invested will be guaranteed maintenance of the current rules. 
  • There will be no change to the rules at any time for generators that come into operation until December 2021.
  • Only the B wire portion of the TUSD (distribution system usage fee) will be “taxed”. This portion pays for energy distribution and corresponds to around 28% of the electricity tariff.

The changes must occur as follows:

“These measures will contribute to society as a whole, as we are promoting a source of clean energy in a balanced way. In the way proposed in the PL, we will promote the reduction of energy bills for all Brazilians and not just those who have solar panels”, highlighted Congressman Lafayette. 

“When solar energy is injected into the system, it replaces energy from thermoelectric plants, which are not only dirty but also expensive. In this way, solar energy will make energy bills cheaper around the world.” The deputy also spoke about the democratization promoted by the PL: “low-income consumers will also be able to participate through shared generation”. 

The news of the PL was well received by the solar sector. Companies and associations consider that the project provides cohesion on the subject. Representatives of ABSOLAR (Brazilian Association of Photovoltaic Solar Energy), ABGD (Brazilian Association of Distributed Generation) and Movimento Solar Livre (of the yellow helmets, a movement that brought together more than 2 thousand workers in the solar sector across the country) mentioned agreeing and be aligned with the premises adopted in the bill.

For Hewerton Martins, leader of the Free Solar Movement, who was also heard by the Solar Channel, “there was an alignment between the movement and the associations (ABSOLAR and ABGD) in favor of the premises of the PL presented by deputy Lafayette. We will wait and follow the presentation of the PL text at the congress with all the details. Representative Lafayette studied the subject a lot and within Congress there is no one who understands this subject more than him.”   

Hewerton Martins, leader of the Movimento Solar Livre, was also heard by Canal Solar. Photo: Disclosure

On Tuesday night the Solar Channel also talked to Carlos Evangelista, president of ABGD. In his words, “the bill brings legal stability to investors, consumers and companies”. He highlighted that the PL “reconciles the interests of all agents involved: consumers, distributors, regulatory agency and companies in the sector.” In Carlos Evangelista's opinion, the PL “pays the line and presents a feasible and feasible solution in the short, medium and long term”. 

Carlos Evangelista, president of ABGD. Photo: Disclosure

Evangelista highlighted that the expectation is that the PL will be approved within 3 months.” Carlos also highlighted that “GD gained great relevance after 10/15/19, the date on which ANEEL communicated the fateful proposal for abrupt migration to alternative 5 (charge of up to 60% of energy injected into the grid). The lesson that remains is that popular mobilization has strength and that the interest of another group cannot prevail over the public interest of the entire society.” The president of ABGD also mentioned that “ANEEL's public consultation should continue its course, since all contributions that were sent should be read and evaluated by the agency”, adding that “the regulatory agency should publish a text in line with the PL authored by Representative Lafayette”.

Barbara Rubim, vice-president of the board of directors of ABSOLAR, who also gave an interview to Solar Channel on the night of 14/01, he highlighted the strength and importance of the PL: “We will wait for this bill (PL) to be presented and that during its processing in the National Congress we reach approval before the conclusion of the ANEEL 482 review process.” 

Bárbara Rubim, vice-president of the ABSOLAR administrative board, was heard by the Solar Channel.

According to Bárbara, the ideal would be to approve the PL before ANEEL completes the 482 review process, as this way there would be no mismatched periods, in which REN 482 would change and later another change would occur due to the approval of the law. In any case, she added, “within a hierarchy of norms, a law has greater power than a normative resolution from ANEEL, so any act that comes from the National Congress in this sense will be able to supersede any provision of the agency”.

Ronaldo Koloszuk, president of the board of ABSOLAR, also spoke to the Solar Channel and stated: “ABSOLAR works to unite the sector. We live in a unique moment in which we have managed to unite the President of the Republic, President of the Chamber of Deputies and President of the Senate. A moment like this cannot be wasted. The sector embraced the proposal and it is time to turn this page. The proposal was popular and the solar energy sector no longer has anything to worry about. Those who should be concerned about this union and this bill are the electricity distributors.” “Solar energy has changed the game,” he added.

The solar energy sector no longer has anything to worry about.

Solar energy has changed the game.

Ronaldo Koloszuk

Ronaldo Koloszuk, president of the administrative board of ABSOLAR. Photo: FIESP/Disclosure

Picture of Redação do Canal Solar
Canal Solar editorial team
Text produced by Canal Solar journalists.

3 Responses

  1. Good morning everyone, this discussion regarding PL 5829 truly brings legal certainty to our sector!! We are a company that works in the solar market and we have found that this is one of the difficulties that future investors have when choosing to generate their own energy. With the publication of the PL we will be able to seek out new customers, informing them that we are on the right path!! This is good for the entire organized society and for the country.

  2. And I see a lot of deception, on the part of many businessmen who only want to make a profit on the coast of the least favored.
    Yes, there will be taxes, we know how much, as the charge is legal. If the President got this tax from who knows where... It's simple for the Union to pay for the subsidy for solar energy, now passing on the cost to those who are unable to purchase a photovoltaic system.
    Where is Rodrigo Maia, Acolumbre and so on.
    They are all populists, because if the PT wins the 2022 elections we will be in a very bad situation. The Cut are mostly made up of electricians who don't want to see their active comrades in a bad situation.
    Just my opinion
    Hug,

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