Uncovering the beneficiaries: exploring the impact of new distributed solar energy legislation in Brazil

Amanda Mendes Ferreira Gomes, Gustavo Xavier de Andrade Pinto, Daniel Odilio dos Santos, Andrigo Filippo Gonçalves Antoniolli, Helena Flavia Naspolini and Ricardo Rüther

Renewable Energy, 2025, vol. 251, issue C

Abstract: Photovoltaic (PV) adoption within Brazil's distributed generation (DG) framework has expanded significantly following legislative milestones in 2012, 2015, and 2022, emphasizing the financial and economic effects of net metering. This study analyzes the implications of key regulations (REN 482/2012, Law No. 14,300/2022, and REN 1059/2023) by applying methodologies from the Brazilian Energy Research Company (EPE) to a 2.65 kWp rooftop PV system in southern Brazil. Analysis of 27 utilities demonstrates that consumers operating under Distributed Generation with Net Metering and Grid Compensation (GDII) achieve superior financial performance compared to Full Injection Distributed Generation (GDI) only within specific consumption bands, with advantages observed across nine utilities. Regional disparities are evident, with 66 % of favorable utilities located in the South and Southeast, driven by tariff structures and an 836 % variation in regional rates. Positive net present value (NPV) outcomes for GDII occur between 230 and 310 kWh, with the internal rate of return (IRR) window narrowing to 270–310 kWh. Moreover, higher financial returns are associated with utilities exhibiting lower operational costs, particularly where distribution system charges (TUSDg) and low-voltage maintenance fees (Wire B charges) are minimized. These findings underscore the evolving regulatory landscape's role in promoting equity, sustainability, and PV market expansion.

Keywords: Solar photovoltaics; Regulated tariff; Renewable distributed generation; Brazilian PV legislation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:251:y:2025:i:c:s096014812501136x

DOI: 10.1016/j.renene.2025.123474

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