4 things you need to know about the legal framework for photovoltaic energy.

4 things you need to know about the legal framework for photovoltaic energy.

In January, the Law 14.300 of January 6, 2022, The law establishing the legal framework for distributed generation in Brazil was signed into law by the President of the Republic, Jair Bolsonaro, setting new rules for photovoltaic solar energy.

The new law establishes the legislation for the modality that allows the self-production of energy from renewable sources, and will reinforce the attractiveness of photovoltaic technology for Brazilian consumers, according to the Brazilian Photovoltaic Solar Energy Association (Absolar).

Furthermore, it creates a stable and balanced legal framework for the use of clean and sustainable sources, such as solar photovoltaics, in the self-generation of electricity.

But if you're interested in buying a solar energy system now, there are some important points to consider to take advantage of the timing.

What are the main changes in the Legal Framework?

  • It's now law: the legal framework brings greater legal and regulatory certainty for the sustainable growth of the Brazilian electricity sector and guarantees incentives for the use of clean and renewable energies.
  • The new rules only come into effect one year after the law is passed. This means that if you purchase the system by the end of this year, you will remain under the old rules – which are more advantageous – until the year 2045.
  • Since the current rules are more advantageous, there will be many projects happening this year. Because of this, distributors are likely to be overwhelmed, delaying some projects. Therefore, if you are interested in investing, it is important to invest in advance (by July).
  • For those who already have a solar energy system, the rules will remain the same until the year 2045.
  • For those installing their photovoltaic solar energy system next year, a six-year transition period is planned during which systems will start paying in full for all tariff components not associated with the cost of electricity, including the use of the distribution network.

Transition period

The project establishes a transition for charging fees and tariffs for the use of distribution systems, and the rule will apply to consumers who request access to the distributor through the Electric Energy Compensation System (SCEE) next year.

Until December 31, 2045, the current energy compensation regime will be maintained for projects that already have their system installed and for those that apply for access this year.

Projects submitted from 2023 onwards, that is, after the 13th month following the publication of the law, fall under the transitional rule. See the table below for a better understanding:

Positive impacts of the new regulations for photovoltaic solar energy.

According to expert analysis, the new rules will have a positive impact on the continued growth of self-generation systems in Brazil, considering all the benefits that self-generation provides to the national electricity system, Brazilian society, and the environment.

Furthermore, the distributed generation (DG) legal framework keeps solar energy attractive to Brazilian consumers and the sector, even for those whose systems comply with the new regulations. This is because the law provides greater regulatory certainty for investors and should accelerate investments in new photovoltaic projects across the country.

Self-generation of solar energy has currently become one of the best alternatives to avoid tariff increases, easing the financial burden on consumers and businesses during this period of water crisis. Therefore, the sector should remain economically profitable even with the introduction of new tariff rules for photovoltaic systems.

What changes for those who already have solar energy?

For those who already have a grid-connected solar energy system at their home or business, nothing will change until 2045. In other words, customers don't need to worry because the current rules of the electricity compensation system will remain in effect until 2045. Only after that period will the new rules come into force.

For those who already have a photovoltaic solar energy system and are interested in a expansion, We suggest that it be carried out this year so that the rules are not changed.

Until when do I need to finalize the purchase of my system?

The enactment of the new law has triggered a strong growth in photovoltaic projects in the country, which will overload distributors and lead to a large backlog of new projects.

Therefore, we strongly recommend that you finalize the purchase of your system as soon as possible, so that the market can absorb all the new demands that will arrive throughout the year. Our suggestion is to close your contract. as soon as possible, at the latest by the beginning of December 2022.

We at Solstício Energia specialize in supporting companies with energy consumption exceeding 500 kWh/month. So, if your company would like to purchase a new solar power generation system and take advantage of the transition rules under the current energy compensation scheme, request a quote. clicking here  Come and close the deal!

Solstício Energia specializes in photovoltaic solar energy and account management, and its purpose is to make our reality more sustainable. We work to reduce fixed costs and lessen the burden of electricity for companies through smarter energy management.

Source: Solstice Energy
https://www.solsticioenergia.com/2022/02/03/marco-legal-gd-novas-regras-energia-solar-fotovoltaica

See also:

Services – CSW Electrical Panels

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