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Home / News / Policy and Regulation / Following the vote, the solar sector reacts with relief to the removal of the tax on distributed generation.

Following the vote, the solar sector reacts with relief to the removal of the tax on distributed generation.

The approval of Provisional Measure 1.304/2025 without the R$ 20,00 charge for every 100 kWh offset was described as a relief.
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  • Photo by Henrique Hein Henrique Hein
  • October 31, 2025, at 15:20 PM
2 min 31 sec read
Canal Solar - After vote, solar sector reacts with relief to the removal of the tax on distributed generation.
Photo: Archive/Agência Brasil

After weeks of tension and intense negotiations in Brasília (DF), the solar energy sector woke up this Friday (31) with a feeling of relief.

The final approval of Provisional Measure 1.304/2025, without the R$ 20,00 charge for every 100 kWh offset on distributed generation (DG), was classified by associations, federations, and parliamentarians as a boost for the legal security of the sector.

For ABGD (Brazilian Association of Distributed Generation), the result was a collective achievement that guarantees the continuity of the rules of Law 14.300 and the protection of consumers.

INEL (National Institute of Clean Energy) and MSL (Free Solar Movement), which also followed the entire process of the Provisional Measure, reinforced the role of dialogue and unity in the sector. "This achievement belongs to everyone who believes in a cleaner, fairer, and more sustainable future, and proves that together we are stronger," the organizations stated.

A ABSOLAR The Brazilian Photovoltaic Solar Energy Association highlighted that removing the charge restores regulatory stability and prevents setbacks for those who invest in clean energy.

"In addition to guaranteeing the citizen's right to generate their own renewable energy, it also ensures that consumers in rented properties, apartments, and offices continue to have access to clean and competitive electricity," the organization said in a statement.

Even so, the association noted that there are still important challenges to be faced, such as clarifying the rules for compensation for generation cuts and expanding incentives for energy storage.

Lawmakers celebrate achievement

Lawmakers who led the negotiations in Congress in favor of distributed generation also acknowledged the result as a necessary step to restore confidence in the sector.

“We managed to remove the article that created an unfair charge for those who generate their own energy. It was a decision in favor of the consumer and the reduction of electricity bills,” stated Congressman Lafayette de Andrada (Republicanos-MG).

Representative Pedro Uczai (PT-SC) highlighted that the outcome avoids a negative impact on regions with great solar potential. "If the text had remained as it was, it would have inhibited the development of microgeneration and minigeneration," he said.

In addition to the main associations and political figures, state federations also assessed the result as a positive response to the mobilization carried out by the sector.

“After weeks of meetings and negotiations, the sector can breathe a sigh of relief and move forward safely to continue bringing savings to consumers,” said Anderson Mendonça, president of FPGD (Frente Paulista de Geração Distribuída).

MP 1.304 now goes to the President for approval, a step that will mark the definitive end of its processing. In addition to preserving the rights of distributed generation consumers, the text also brings structural advances to the electricity sector, such as the inclusion of energy storage in Brazilian legislation.

all the content of Canal Solar is protected by copyright law, and partial or total reproduction of this site in any medium is expressly prohibited. If you are interested in collaborating or reusing part of our material, please contact us by email: redacao@canalsolar.com.br.

Congress GD (distributed generation) MP for the reform of the electricity sector
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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