
Local solar PV equipment manufacturers in Brazil can expect tougher competition from foreign made products that have been exempted from paying import duties starting from August 1, 2020.
Key Takeaways
- Brazil has removed import duties from a number of solar PV products being shipped into the country
- Eligible products as notified by the Economy Ministry will be exempt from paying import duties till the end of 2021
- ABSOLAR says till now imported solar modules were required to pay up to 12% tariffs while this went up to 14% for inverters
Related Articles
-
Norwegian Aluminium Company Seeks Solar In Brazil
Norsk Hydro To Develop 480 MW Solar Project With Scatec & Equinor, And 620 MW Solar & Wind Plant With Green Investment Group In Brazil To Lower Group’s Carbon Footprint
(11. December 2020)
-
Brazil Announces 3-Year New Energy Auction Schedule
Ministry Of Mines & Energy Officially Cancels A-4 & A-6 New Energy Auctions For 2020; Releases New Energy Auction Schedule For 2021-2023
(10. December 2020)
-
Brazilian Mining Firm To Get 766 MW Solar Park
Brazilian Miner Vale SA Announces 766 MW Sol Do Cerrado Solar Project In Brazil To Power Mining Operations & Save Annual Electricity Costs
(04. December 2020)
The Brazilian government has done away with all import duties on foreign manufactured solar PV equipment. This brings import taxes down to 0%, a step that local PV association ABSOLAR points out boosts the industry especially when Brazil’s Real is suffering devaluation against the US Dollar pushing up component costs.
A notification in the country’s official journal Diário Oficial da União dated July 16, 2020 issued by the Chamber of Foreign Trade under the Ministry of Economy lists a number of imported goods that do not need to pay any import taxes. ABSOLAR says PV components included here are exempt from paying import taxes till the end of 2021.
The list includes both various monocrystalline as well as bifacial modules, 3-phase inverters for PV systems and components used in trackers. The resolution will come into effect from August 1, 2020.
On its website, ABSOLAR says it told Reuters that import taxes for solar modules usually come up to 12% whereas inverters pay tariffs of 14%. The new ruling is expected to be detrimental to the prospects of local manufacturers as imported ones will now much less expensive than locally manufactured products giving them a tough competition.
Last month, Brazil approved a new decree to ease green projects financing paving way for more than 8 GW solar PV capacity by 2030 out of 36 GW new renewable energy capacity expected to be built as a result (see Brazilian Decree To See Over 8 GW PV In 10 Years).