O increase in import tax about painéis solares, announced by the Federal Government in the last days of 2023, puts at risk the installation of 18 GW by solar plants, responsible for more than BRL 69 billion in investments and about 540 thousand green jobs.
The statement was made by Rodrigo Sauaia, CEO of ABSOLAR (Brazilian Association of Photovoltaic Solar Energy), in exclusive interview granted to Canal Solar.
According to Sauaia, the decision was taken as a result of a pressure made by national manufacturers who want protectionist measures against the import of photovoltaic equipment in the Brazilian market.
This Monday (01), came into force in Brazil a series of determinations promulgated by the Federal Government, among them a Gecex Resolution No. 541, increasing the import tariff on solar panels with the aim of increasing the value of national production.
For Sauaia, however, the measure will not resolve this issue, on the contrary: harms consumers Brazilians and the vast majority of the solar sector, benefiting only a small group of national manufacturers already installed in Brazil.
According to him, today national manufacturers produce less than 5% of what the photovoltaic market needsa, with prices that can be 50% more expensive than international products.
“These measures go against the Federal Government's own effort to accelerate the energy transition in Brazil, because they put current investments in the sector at risk and threaten to destroy thousands of jobs created over the last decade,” he said.
Meeting with Alckmin
The executive told the Canal Solar that, in November 2023, the ABSOLAR made one mapping with the 122 ex-tariffs most used by small, medium and large solar energy entrepreneurs and that the document was delivered to the MDIC (Ministry of Development, Industry, Commerce and Services).
A association recommended that the Federal Government not eliminate exemptions on these specific components. However, according to Sauaia, the Ministry still chose to cancel 56 of the 122 former tariffs listed by ABSOLAR.
“We had a meeting with Geraldo Alckmin, the minister and vice-president of Brazil, with his secretaries and his team. There we explained that for these projects – most of them larger – there is a risk that is related to access to financing”, he said.
“Financing banks need the ex-tariff to guarantee financing for projects. If the Federal Government drops the ex-tariff, the centralized generation enterprise loses financing, loses the financing guarantee, or this financing is at risk of not happening due to the lack of this ex-tariff”, he said.
social programs
The executive also assessed that the The Federal Government's decision could hinder the implementation of the Lula Government's strategic programs, such as the inclusion of solar energy in popular homes under the Minha Casa Minha Vida Program, the inclusion of solar energy in public buildings (such as schools and hospitals), the decarbonization of the Amazon and the diversification of the Brazilian electrical matrix.
“This measure ends up being a shot in the foot, because the Government takes a measure that could harm the Government itself from developing and using solar technology, which is increasingly strategic, to strengthen social and government programs, which can rely on this technology a big difference in favor of Brazil and the population”, he said.
Most suitable solution
According to Sauaia, the The way the Federal Government wants to promote national industry is far from being the most efficient way. “This is a strategy that does not bring the expected results. Several other countries have already followed this path and regretted following this path,” he said.
To Sauaia, the best form to develop national industry would be establishing a competitive industrial policy, based on the creation of incentives to attract manufacturers, such as differentiated financing from BNDES (National Bank for Economic and Social Development) for products made in Brazil.
“In addition, it would be important to have fewer taxes on raw materials and industrial machinery for these factories to be set up in Brazil, with lower prices, more competitive, public purchases of solar equipment manufactured in the country,” he stated.
Recommendation
In this sense, to minimize possible damage to Brazilian society, Sauaia said that the ABSOLAR recommends to the Federal Government that a deadline be established, until the second half of 2024, for the inauguration of new national factories of photovoltaic equipment affected by the measure.
In the absence of openings, or if minimum manufacturing volumes with competitive prices for consumers are not reached, the association recommends the removal of taxes on solar equipment from January 2025.
“If this path starts to bring only damage to the market, we should not continue to insist on a lose-lose route. We have to correct the course and look for a win-win path”, he commented.
“We understand that the Ministry took this measure based on a promise from manufacturers to bring in new factories, but society cannot be harmed and pay the price for this. So, if there is no such progress, we have to restructure the policy, thinking precisely about what is best for Brazil”, he concluded.
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