Why are so many solar entrepreneurs leaving money on the table by ignoring one of the key tax benefits of building power plants?
The weight of what is unknown
In the solar energy sector, the watchword is efficiency. Every penny invested in technology, logistics, and operations counts toward ensuring a return on investment.
However, what many entrepreneurs ignore is that a good portion of their costs can be dramatically reduced even during the implementation phase, with the correct use of tax benefits.
More precisely, we are talking about the exemption from ICMS regarding a wide range of items used in the construction of solar power plants — a special tax regime that, due to lack of awareness, is overlooked by a large portion of investors in the sector.
The case that exposed the potential economy.
Recently, Thiago Bao, a tax lawyer with 20 years of experience in the renewable energy sector, presented a client with a symbolic check for R$ 466.993,96. This amount represents the savings generated by the implementation of five distributed generation solar power plants, with the correct application of the special ICMS exemption regime.
The case, publicized on the specialist's social media, drew attention. After all, the investment made outside of the "solar kit" (which is already naturally exempt) totaled R$ 2,6 million in materials and services that would normally be taxed at 18%. Using the correct legislation resulted in savings of almost half a million reais.
What many consider a technical detail can represent the difference between a financially viable project and an accumulated loss.
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