Incentives for renewables and batteries would reduce electricity bills

Increase in energy tariffs under red flag 2 would be lower if it weren't for cuts in renewable plants and taxes on batteries, he assesses ABSOLAR
Incentives for renewables and lower taxes on batteries would reduce high electricity bills
Solar power plant in operation. Photo: Freepik

The increase in electricity bill of Brazilians, announced by ANEEL (National Electric Energy Agency), with beginning in September of red flag on level 2, could be smaller if it weren't for the cuts recurrent in renewable energy plants more competitive. 

Increase in tariffs occurs due to the lack of rain and the activation of fossil fuel plants, which are more expensive and polluting, but could also be alleviated by reducing taxes on storage technologies, capable of increasing the availability of clean sources, according to assessment of ABSOLAR(Brazilian Photovoltaic Solar Energy Association).  

For the entity, this scenario lights up an alert for the need to reinforce planning and investments in the infrastructure of the electricity sector, especially in transmission lines and new ways of storing clean and renewable energy, generated in abundance in the country. 

For that, Rodrigo SauaiaCEO of ABSOLAR, argues that it would be essential apply the same tax treatment to electrical energy storage technologies as used for renewable sources, because, according to him, the tax burden on batteries currently exceeds 80%. 

"The Brazil is ten years behind the world in the use of batteries and this undermines the country’s leading role in the race for energy transition and the consolidation of an increasingly robust, competitive and sustainable economy”, points out the executive. 

“Regarding the cuts in renewable generation (constrained-off or curtailment), they are determined directly by the ONS (National Electric System Operator). In other words, entrepreneurs have no control or responsibility over these decisions, which already represent a accumulated waste of clean energy of around R$1 billion in the last two years. This is a huge contradiction, as the country operates more expensive and polluting plants, while at the same time restricting solar and wind generation”, highlights Sauaia.  

In its turn, Ronaldo Koloszuk, Chairman of the Board of Directors of ABSOLAR, reinforces that the use of solar energy and storage technologies still can alleviate pressure on electricity tariffs and rising inflation. 

“In this scenario, solar self-generation is one of the best solutions to protect against tariff flags and, thus, ease the burden on Brazilians’ pockets in the face of increasingly frequent water shortages,” says.

The executive also emphasizes that the solar source is strategic for the diversification of the electrical matrix and Brazil’s sustainable economic growth. “In addition to preserving water resources, solar is a leader in generating green and quality jobs,” says Koloszuk.

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Photo by Henrique Hein
Henrique Hein
He worked at Correio Popular and Rádio Trianon. He has experience in podcast production, radio programs, interviews and reporting. Has been following the solar sector since 2020.

An answer

  1. Good morning. This is a very good report. Our current President is really not in tune with the growing use of solar energy and is only concerned with the lower income class, forwarding projects only in this sense, without offering financing conditions to the middle class, who need to finance their solar systems in private or public banks at absurd interest rates, when the BNDES already has laws that finance solar energy for individuals. If we had a system, we could even pay for the batteries, but we are not given any attention by the government in general to solar energy. I also see that the media reports that Brazil has a certain percentage of its energy matrix in clean form, etc., etc., but they do not mention that this advance in the use of solar energy is due to the private sector and private residences that pay high interest rates to obtain a minimum of savings on their electricity bills, which makes one think that this increase in these energies comes from government investments in general, and this is not true. I believe that Canal Solar can help us in this regard. Only together can we overcome these obstacles that are placed before us.

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