Brazil's Ministry of Development, Industry, Trade and Services (MDIC) announced this week an increase in the import tax rate on solar modules from 9.6% to 25%. The decision applies to photovoltaic (PV) cells that are assembled into panels or modules.
The Executive Management Committee of the Chamber of Foreign Trade (Gecex-Camex) approved the tariff hike, citing the intention to bolster local production and generate jobs within Brazil.
The increase was primarily driven by requests from solar module manufacturers BYD Energy Brazil and Sengi Solar, with BYD being a subsidiary of Chinese electric vehicle manufacturer BYD.
However, industry experts have voiced concerns over the potential negative consequences. Isabella Sene, a technical-regulatory specialist at Brazilian solar power association Absolar, warned on social media that the tariff increase could lead to significant setbacks for the sector.
She highlighted that up to 281 solar projects, representing over 25 GW of capacity and more than BRL 97 billion (USD 16.7 billion / EUR 15.8 billion) in investments, could be at risk of cancellation by 2026 due to the higher import taxes.
