Under Convention 16/15 last April, the states of Goias, Pernambuco and São Paulo have agreed to provide an exemption to the ICMS tax for net metered renewable energy systems, effective September 1. The agreement was signed in the states of Rio Grande do Norte, Ceará and Tocantins during the following months.
The implementation of the ICMS tax is the responsibility of Brazil’s states, for projects whose electricity is subject to billing under the net metering rule 482 (2012) by the National Electrical Energy Agency (ANEEL).
In addition to the tax exemption, the agreement also provides for the introduction of modifications to boost the net metering program. ANEEL is currently studying ways to reduce bureaucracy for these types of projects in addition to other measures such as extending the system size cap to five megawatts.
ANEEL estimates that by 2024 it is possible to reach 500.000 PV installations under net metering with a total capacity of 2 GW in Brazil. However, at present there is only around 10 MW of capacity under net metering.
Translated and edited by Christian Roselund