Brazil: state of Goiás introduces tax break for PV components

The government of the Brazilian state of Goiás has introduced a fiscal exemption for industrial components used in solar module production. The Government has exempted local manufacturers from paying ICMS, the Brazilian state sales tax, on the import of 15 products used in solar panel manufacturing, including solar cells, aluminium structures, junction boxes, back-sheets, and encapsulants.

The measure, which was included in the law “ley 16.618” published in the state’s official journal on April 6, is aimed at supporting the local solar program Goiás Energía Solar, which was launched in February and includes, among other things, low interest rate financing for the installation of solar power systems.

Brazil‘s Bank of Economic and Social Development (BNDES) is financing solar projects based on locally manufactured PV components. Several projects for solar module and inverter factories were submitted to BNDES over the past years. Currently none are located in Goiás, although several companies had expressed their interest in investing in the state.

According to the BNDES, in April 2016 there were five PV module factories accredited under its Finame program, and another 15 solar manufacturing projects. In total, there were 17 manufacturers with accredited industrial projects under the program.

In addition to the five module factories, BNDES has accredited seven inverter production facilities, five PV system providers, two for monitoring systems and one connection box plant.