Solar Energy in Brazil 2026: Market, Net Metering and Free-Market Opening

Brazil had about 65 GW of solar PV (photovoltaic panels, which turn sunlight into power) at the end of 2025. Roughly 45 GW was distributed, and 20 GW was in authorised projects, including centralised plants. Under Law 14.300, new distributed systems pay 60% of the Fio B distribution components on compensated energy in 2026. Fio B is the part of the grid-use fee (TUSD) that covers the distributor’s own network. The share rises to 75% in 2027 and 90% in 2028. From 2029 the Article 17 rules apply.

Brazil’s photovoltaic market: distributed and centralised capacity

Banco do Nordeste’s May 2026 sector study puts Brazil’s solar PV at 65 GW at the end of 2025. About 45 GW is in distributed generation (small and mid-size systems near the user). About 20 GW is in authorised projects, including centralised plants. The study says this is about 25% of the country’s installed electric power. It also says Brazil holds about 3% of world PV capacity, sixth among countries. Worldwide capacity was 1,859 GW at the end of 2024, with China at 47.7%.

The same study names Bahia, Piauí and Ceará as the leading Northeast states for solar. It cites the 2035 ten-year energy plan. In that plan, solar generation rises 83% over the plan period while total generation rises 38%. Capacity is the power a plant can generate. It is not the energy it makes in a year. A plan figure is a scenario. It is not operating capacity.

Distributed generation by segment and state

ANEEL is the national electricity regulator. It publishes a register of every distributed-generation unit as open data (ANEEL open data, distributed generation). The file dated 10 October 2026 lists 4,665,874 solar units with 53.79 GW of registered installed power. This register counts connected units in October 2026. So it uses a different basis from the study’s end-2025 figure. The shares below are computed from that file.

The five largest states by registered solar power are:

• São Paulo (7.57 GW, 14.1%)
• Paraná (6.86 GW, 12.8%)
• Minas Gerais (6.40 GW, 11.9%)
• Rio Grande do Sul (3.94 GW, 7.3%)
• Mato Grosso (3.19 GW, 5.9%)

Microgeneration holds 43.60 GW across 4,644,712 units (81.1%). Minigeneration holds 10.19 GW across 21,162 units (18.9%). Now look at the participation mode:

• 35.84 GW generates on the consumer’s own unit (66.6%).
• 14.44 GW is remote self-consumption (26.8%).
• 3.39 GW is shared generation (6.3%).
• The remaining 0.12 GW is condominium and unclassified units.

The register lists grid-connected units, so off-grid systems do not appear in it. The distributed and utility-scale businesses also differ in contracts and risk. A rooftop compensation project needs its own eligibility rules and revenue model. So does a remote shared arrangement. So does a centralised generator that sells energy.

MMGD classification: the limit is 75 kW and 3 MW, not 5 MW

MMGD means micro- and minigeneration distributed generation (small systems connected to the local grid). ANEEL’s distributed-generation overview describes microgeneration up to 75 kW. It describes minigeneration above 75 kW up to 3 MW. Specific situations allow up to 5 MW under Law 14.300 (Article 1 and its sole paragraph). Before you choose the connection procedure, settle three things. They are the installed-power definition, the technology and the classification.

Keep module DC kWp (the rated size of the panels) and inverter AC kW (the size of the inverter output) apart in the design file. Law 14.300 bars splitting one plant into smaller units to fit the limits (Article 11, paragraph 2).

SCEE credits: energy accounting before savings

The Sistema de Compensação de Energia Elétrica (SCEE) compensates energy, not money. ANEEL states that accumulated credits are valid for 60 months. Model when and where a credit can be used under the participation mode. A credit balance is not a cash receivable.

Start with three flows:

• PV electricity consumed directly behind the meter.
• Imported electricity supplied by the distributor.
• Exported electricity available for compensation.

Directly used PV has already avoided an import. So it is not also recorded as exported credit. Surplus beyond eligible consumption has no cash value until the credits are used.

For remote self-consumption or shared generation, confirm four things. They are the recipient units, the legal relationship, the distributor area and the allocation rules. Law 14.300 defines remote self-consumption as units held by the same legal entity or person (head office and branches included). All of them must be served by the same distributor. A remote SCEE allocation is a different deal from an ACL supply contract. ACL is the free market, where consumers pick their power supplier and negotiate the energy price.

Law 14.300: Fio B phase-in and who is exempt

The consolidated Law 14.300 splits SCEE units into two groups.

Article 26 keeps the older billing rules until 31 December 2045. It covers units that existed when the law was published. It also covers units that filed an access request with the distributor within 12 months of publication. Under those rules, tariff components apply only to one amount. That amount is the positive difference between consumption and the energy injected plus accumulated credit.

Article 27 covers all other units. Billing applies a percentage of three tariff components to all compensated active energy. These are the components of the distribution service. They are:

• the remuneration of distribution assets
• the regulatory depreciation quota
• the cost of operating and maintaining the distribution service

This is the part usually called Fio B.

Some units filed their access request between the 13th and 18th month after the law’s publication. They move to the Article 17 rules from 2031 instead of 2029 (Article 27 paragraph 2).

Larger remote and shared projects follow a stricter path. This applies to minigeneration above 500 kW from non-dispatchable sources (sources you cannot switch on and off at will) in remote self-consumption. It also applies to shared generation where one holder has 25% or more of the surplus. For these, Article 27 paragraph 1 applies 100% of those distribution components until 2028. It also applies 40% of specified transmission and network-use components. It applies 100% of the R&D, energy-efficiency and TFSEE charges. Article 17 applies from 2029.

The percentage is not 60% of the whole bill. It also does not fix later years at the install year’s value. Keep three records. They are the accepted access request, the commissioning evidence and the distributor’s confirmed billing treatment. In the model, use the tariff-component values and dates from the distributor’s current tariff.

Connection, inspection and operation

Submit the distributor’s current documents for the proposed connection. Then track each step: the request, the technical response, any network works, metering and permission to operate. For a large commercial or centralised project, assess four items on their own. They are contracted access and export limits. They are also curtailment exposure (being told to cut output) and the sales arrangement. A strong solar resource says nothing about whether the network has capacity.

The competent authorities and qualified professionals handle several items. These are roof structure, fire and access requirements, and electrical design. They also handle any planning or environmental permissions.

Free-market electricity: the opening dates

MME’s guidance, updated in 2026 says Group A consumers (2.3 kV and above) can already migrate. Individual loads below 500 kW need retail representation. For low-voltage consumers it gives two dates under Decree 13.097/2026. They are November 2027 for industrial and commercial consumers and November 2028 for all others, including residential.

The distributor still delivers power over the network. So negotiating an energy price does not remove network charges. Compare complete supply and network costs, representation fees and settlement exposure. A wholesale PPA price and an all-in retail bill are not the same basis. A PPA is a power purchase agreement. The gap between the two is not the customer’s net saving.

Financing and tax: check the actual instrument

BNDES Finame Baixo Carbono describes indirect-operation interest as three components. They are the financial cost, BNDES remuneration and the financial agent’s rate. The lender’s offer sets the final customer rate. It also sets the eligible equipment, fees, security and repayment schedule.

State tax treatment, electricity-compensation tax treatment and use-of-network discounts are separate instruments. They depend on the state and the transaction. So confirm each with a tax adviser before you add them to a model. A loan changes timing and financing cost. It does not change the installation price.

Local resource and design

INPE’s solar-radiation data is a primary source for location-based resource information. Record the dataset, model, period, units and coordinates you use. Brazil spans both sides of the equator. So orientation and tilt depend on the site, roof limits, shading and load profile. There is no single best azimuth (compass direction).

Keep the equipment’s electrical limits and temperature assumptions with the design. A battery or hybrid system needs a defined operating mode and backup design. Ordinary grid-connected PV does not supply power during an outage. Use a production-estimate assumption register to keep inputs and open site questions visible.

For how other markets compensate exports, compare France’s feed-in tariffs and solar energy in the Netherlands.

A savings example that does not convert surplus into cash

The inputs below are hypothetical annual figures, not a Brazilian tariff quote or a full distributor bill:

Assume all 2,000 exported kWh are eligible and offset imports in the period. At a hypothetical R$0.80/kWh import value, direct use is worth R$2,400 and compensation R$1,600. Say the relevant distribution-component value is R$0.20/kWh. Say the 2026 Article 27 percentage is 60%. Then the charge is 2,000 × R$0.20 × 0.60 = R$240.

The combined benefit is R$2,400 + R$1,600 − R$240 = R$3,760, before other charges and taxes. Now add a hypothetical annual operating cost of R$300 and an initial cost of R$20,000. Simple payback is R$20,000 ÷ (R$3,760 − R$300) = 5.8 years. The calculation leaves out financing, degradation, and replacement. It also leaves out tariff changes and fixed or demand charges.

Say exports exceeded eligible imports. The unused credits would then need a balance and an assumption about later use, because they have no cash value on their own. A net-metering savings worksheet helps you organise these flows. It does not apply Brazilian SCEE rules or reproduce a distributor’s bill.

What the proposal should show

Keep the current tariff card and bills. Keep evidence of the applicable regime, the model version, load data, credit allocation and expected use. Keep an itemised equipment and works quote, the tax basis and the full finance terms. Mark each item as checked, assumed or awaiting a decision. Compare the base case with lower production, lower usable credits and higher costs.

Frequently asked questions

How big is the solar market in Brazil?

A May 2026 Banco do Nordeste study reports about 65 GW of solar PV at the end of 2025. About 45 GW is distributed generation and 20 GW is in authorised projects that include centralised plants. That is about 25% of Brazil’s installed electric power. ANEEL’s distributed-generation registry, in a file dated 10 October 2026, lists 53.79 GW of solar across 4.67 million units.

How does solar energy compensation work in Brazil?

Eligible SCEE participants offset what they consume. They use exported energy and accumulated credits, under the applicable rules. ANEEL states that credits remain valid for 60 months. Their money value depends on billing components and actual use. Unused credits are not cash earnings.

What size limits define distributed generation in Brazil?

ANEEL describes microgeneration up to 75 kW and minigeneration above 75 kW up to 3 MW. Specific situations allow up to 5 MW. The 5 MW figure is the exception, not the general limit.

How much Fio B do new solar systems pay under Law 14.300 in 2026?

Article 27 sets 60% in 2026, after 15% in 2023, 30% in 2024 and 45% in 2025. It rises to 75% in 2027 and 90% in 2028. The Article 17 rules apply from 2029. The percentage applies to the distribution-service tariff components on compensated energy, not to the whole bill.

Who keeps the old billing rules until 2045?

Article 26 applies to units that existed when Law 14.300 was published. It also applies to units that filed an access request within 12 months of publication. A new project does not qualify because of its capacity.

When can low-voltage businesses enter Brazil’s free energy market?

MME’s updated guidance cites Decree 13.097/2026. It gives November 2027 for industrial and commercial low-voltage consumers. It gives November 2028 for other low-voltage consumers, including residential customers.

What interest rate does BNDES solar financing carry?

BNDES Finame Baixo Carbono describes indirect-operation interest as the financial cost plus BNDES remuneration plus the financial agent’s rate. The lender’s offer sets the customer’s final rate.

How much does solar cost in Brazil?

The installed price comes from an itemised quote in reais for the actual site, equipment, connection works, taxes and service scope. A price band for a different capacity does not give the customer’s price or payback.