Brazil has surpassed 29 GW of installed solar capacity, with 8,624 MW from centralized generation plants and another 20,580 MW attributed to mini and micro generation plants of up to 5 MW each, according to data from the National Agency of Electric Energy (Aneel). This year alone, at least 1,437 MW of distributed generation and at least 1,153 MW of centralized generation were added.

Residential systems account for more than a third of the current generation capacity, or 10,400 MW, of which 10,123 MW is attributed to systems of a maximum of 80 kW.

In centralized generation, there are more than 104.4 GW of awarded projects still under construction or under development, Aneel reports. Larger projects are expected to support the growth of the free market and supply power for the energy-intensive production of green hydrogen.

As for distributed generation, just for projects with connection requests made up to Jan. 1, there were more than 30 GW as of February. The distributed generation continues to grow, although at a slower pace.

Distribution and transmission networks remain a barrier

Both in centralized and distributed generation, the availability of grid connections remain a barrier to the realization of all projects. The end of discounts on tariffs that remunerate networks was one of the factors that encouraged the rush of orders for solar generation connection in recent years.

The 50% discount on the tariff for the use of the transmission system (TUST) for centralized projects ended for projects that requested the grant after March 2, 2022. Projects that requested grants before that deadline can still receive the discounts provided they start operating within 48 months of Aneel's authorization, which continues to authorize new projects that are entitled to the discount.

In distributed generation, projects that requested connections after Jan. 7, 2023, will gradually pay the tariff for the use of the distribution system, starting at 15% in the case of systems of up to 500 kW and installed at the point of consumption. For larger systems that are of remote self-consumption or shared generation, the tariff will be paid in full for orders placed after Jan. 7.