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Global energy storage system solution supplier with 15 years manufacturing experience. Chinese
Recently, Brazil's Secretariat of Foreign Trade under the Ministry of Development, Industry, Trade, and Services announced a major policy decision aimed at promoting the domestic solar PV industry by adjusting import tariffs.
Doubling of Extra-Quota Tariffs for Solar Panels
According to minutes from a meeting held on November 11, the Brazilian government has decided to apply a new tariff structure on Solar Panels classified under customs code 8541.43.00. Specifically, the tariff rate for Solar Panels imported outside of designated quotas will increase from 9.6% to 25%, while in-quota imports will continue to benefit from a zero-tariff rate until June 30, 2025.
Brazil has implemented a quota system for Solar Panels and core components, applying different rates for in-quota and extra-quota imports. While in-quota imports enjoy reduced tariffs, extra-quota imports incur high tariffs. In June 2024, Brazil's Foreign Trade Secretariat (Secex) introduced a new quota allocation system for imported PV modules, setting an initial quota cap of $10 million for each company.
Resolution 541/2023 from Brazil's Foreign Trade and Economic Commission (Gecex-Camex) established that the quotas will be effective from July 1, 2024, to June 30, 2025, with total quotas divided into Group A and Group B. Group A represents 30% of the total quota at $304.4 million, and Group B accounts for the remaining 70%, amounting to $710.3 million.
Brazil: A Rapidly Growing Solar Market in the Global Top 10
Brazil ranks sixth in the global solar market. Solar power has become the second-largest contributor to Brazil's electricity mix, with an installed capacity of 37 GW, representing 17% of the nation's total, second only to hydropower.
Projections indicate that Brazil's solar market size will increase from 34.2 GW in 2023 to 97.46 GW by 2028, with a compound annual growth rate of 23.3% during this period.
While Brazil's solar market is expanding rapidly, domestic production capacity lags significantly behind. The annual domestic production of PV modules is only 1 GW, while imports in 2023 exceeded 17 GW, indicating a strong demand that far exceeds domestic supply.
Brazil: China's Second Largest Solar Module Export Market
Brazil is China's second-largest solar module export destination, with China exporting $4.78 billion worth of Solar Panels to Brazil in 2023, capturing a 12% market share, second only to the Netherlands.
Currently, 99% of Brazil's solar module imports come from China, with Chinese companies dominating the top ten rankings in terms of imported module volume. Companies such as Canadian Solar, Trina Solar, Jinko Solar, LONGi, and Yingli have leveraged their strong vertical integration capabilities to lead China's module exports to Brazil.
The Brazilian Photovoltaic Solar Energy Association (ABSOLAR) has criticized the tariff increase, expressing concerns that it will raise solar energy prices, reduce investment, lead to capital outflow, and increase inflation. ABSOLAR also warned that inconsistencies between government policies and actions could deter investment, reduce market appeal, and impact clean energy development and job creation.
The original article is from Global Photovoltaics.
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