The Monetary Policy Committee (Copom) maintained the Selic rate, the economy's basic interest rate, at 13,75% per year. The decision was already expected by financial analysts. According to the committee, the drop in inflation helped to interrupt the cycle of rising interest rates after a year and a half of consecutive adjustments.
In a statement, Copom said it will continue to monitor the economy and may raise the Selic rate again if inflation does not fall as expected.
“The committee reinforces that it will persevere until not only the disinflation process is consolidated but also the anchoring of expectations around its goals. The committee emphasizes that future monetary policy steps may be adjusted and will not hesitate to resume the adjustment cycle if the disinflation process does not proceed as expected”, highlighted the text.
And how does the Selic rate impact the solar distributed generation market?
Currently, around 57% of sales of photovoltaic systems in the country for the DG segment are made through financing lines. For this reason, professionals in the segment consider maintaining the rate at 13,75% as something positive and analyze how the market should react.
Carlos Bouhid, founder of Suney, explains how the Selic rate affects financing for solar energy. “First, because the cost of raising funds for several financial institutions is linked to the CDI and this is consequently ed on to the end consumer. Second, because other fixed-income and lower-risk investments become more attractive, reducing the risk for some investors in this type of asset,” he says.
Microgeneration represents more than 99,2% of solar DG systems in Brazil
Jackson Chirollo, CEO of Edmond, recalls that the photovoltaic sector experienced a moderate reduction in demand at the beginning of this year because many Brazilians had to renegotiate interest rates on previously approved financing and, in some cases, had projects cancelled or postponed.
On the other hand, Antonio Nuno Verças, CEO of Sol Agora, highlights that, in addition to the Selic rate, it is necessary to look at the spread, which is the difference between the purchase and sale price of a share.
“We understand that it is more relevant to look at the spread and the possibility of offering slightly longer and fixed installments than just looking at the rates, as we consider the acquisition of solar energy generators to be a long-term investment”, he analyzes.
“Having the ability to offer slightly longer for this type of financing, we can dilute the installment to fit the customer’s payment capacity. Even with a slightly higher rate, extending the term, sometimes the installment can be identical to the invoice or even a little lower. So, having longer is quite important, sometimes even more important than the rate itself”, adds Verças.
The CEO of Sol Agora also highlights that when evaluating investment in the acquisition of photovoltaic generators, the possibility of offering financing with fixed, pre-fixed rates should be considered, which guarantees the end customer that the installment will not fluctuate.
“This ensures stability throughout the financing, that is, the person knows that they will pay that installment over four, five or six years, whatever the contract, and that there will be no surprises, regardless of variations in inflation or rates. market interest rate (Selic), thus ensuring good predictability of the return on investment from the acquisition of generators”, he comments.
Verças also emphasizes that financing distributed generation equipment should be seen as an investment, which will mean freedom from your electricity bill in a short space of time.
“As for the issue of the final interest rate, it should be thought of from the perspective of the real spread and not the final interest rate. Because if the person is going to leave the money in the bank, they will also have a higher remuneration than they had when the interest rates in the reference market, the Selic, were lower”, he concludes.
Bouhid highlights that the ESG agenda is on the rise in companies and this has contributed to the search for renewable energy, especially solar. “Assets with an ESG appeal continue to be well-regarded by the market and I believe that more institutions are starting to look at the sector, which could generate greater competition and pressure for rates not to rise so much”, he adds.
