The Brazilian government approved measures on Tuesday to increase import taxes on photovoltaic modules and wind turbines, aiming to stimulate local manufacturing of equipment crucial for renewable energy generation.
In a significant move, the government rescinded an import tax subsidy on assembled solar panels, citing domestic production of similar products, according to a statement from the industry and trade ministry. The new measures are set to take effect on January 1.
Additionally, over 300 temporary tax reductions on solar modules were revoked, with the changes slated to become effective in 60 days.
Despite being a leading source of electricity in Brazil, the solar energy sector heavily relies on imported panels, primarily from China, a trend the government aims to reverse through these policy adjustments.
The decision garnered support from Brazil's electrical industry association Abinee, which highlighted that local manufacturers have faced financial losses and job cuts due to the influx of subsidized Asian products.
In a bid to further bolster the domestic wind energy industry, the government raised the minimum generation capacity required for wind turbines to qualify for an import tax exemption. Equipment exceeding 7,500 kilovolt amperes (kVA) will continue to be exempt for the next year, compared to the previous threshold of 3,300 kVA.
Starting from 2025, all wind turbine imports will be subject to an 11.2% import tax, a move aimed at providing relief to local wind turbine manufacturers. They have voiced concerns about heightened competition from imported products, contributing to the contraction of the domestic industry as some global companies ceased production in Brazil.
