The Government of São Paulo decided to renew the ICMS exemption (Tax on the Circulation of Goods and Services) for the micro and mini distributed generation of solar energy sector in the State — the agreement would end on the last day of 2024.
The renewal of the benefit for renewable generation was published in the DOU (Official State Gazette) via Decree No. 69.827, on December 30, 2024. According to the document, the new exemption term is valid until the end of 2026.
According to the assessment of ABSOLAR (Brazilian Association of Photovoltaic Solar Energy), the decision consolidates the competitiveness of solar self-generation in the region, benefiting residential consumers, small businesses, rural producers and public managers.
“Renewal is essential to meet new demands for clean and competitive electricity, which will support the growth of different economic activities in the State, as well as contribute to achieving targets for reducing pollutant and greenhouse gas emissions,” said Guilherme Susteras, board member and coordinator of the entity’s DG (distributed generation) working group.
He explains that the expectation was that the renewal would be extended until 2032, as is already done in all other states in the southeast region (Minas Gerais, Rio de Janeiro and Espírito Santo).
However, the decision of the São Paulo government was aligned with the term of validity of the current State Government administration, that is, until the end of 2026.
Despite this, Susteras believes that the state's decision is “very positive and well-received by the sector, as it brings predictability and security to consumers and the solar market for the next two years,” he commented.
Solar energy in Sao Paulo
Currently, São Paulo leads the state ranking of installed power with solar sources in distributed generation, with more than 4,8 GW in operation in homes, businesses, industries, rural properties and public buildings, according to the ABSOLAR.
There are more than 514 operational connections, spread across all municipalities in São Paulo. Since 2012, the segment has also attracted more than R$22,8 billion in investments to the state, created more than 146 green jobs and raised R$6,9 billion for the public coffers.
“Updating the ICMS rules in São Paulo is essential for the state to maintain this virtuous cycle of social, economic and environmental development, with more investments, green jobs and sustainability,” said Rodrigo Sauaia, executive president of ABSOLAR.
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Congratulations to Governor Tarcísio, for his attitude, we need more incentive for the Solar sector.