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

Author

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

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.

Suggested Citation

  • Gomes, Amanda Mendes Ferreira & Pinto, Gustavo Xavier de Andrade & dos Santos, Daniel Odilio & Antoniolli, Andrigo Filippo Gonçalves & Naspolini, Helena Flavia & Rüther, Ricardo, 2025. "Uncovering the beneficiaries: exploring the impact of new distributed solar energy legislation in Brazil," Renewable Energy, Elsevier, vol. 251(C).
    • Handle: RePEc:eee:renene:v:251:y:2025:i:c:s096014812501136x
    DOI: 10.1016/j.renene.2025.123474
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    References listed on IDEAS

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    1. Iglesias, Caroline & Vilaça, Phillipe, 2022. "On the regulation of solar distributed generation in Brazil: A look at both sides," Energy Policy, Elsevier, vol. 167(C).
    2. de Souza Almeida Neto, José César & Torres, Pedro Ferreira & Manito, Alex Renan Arrifano & Pinho, João Tavares & Zilles, Roberto, 2023. "A comparison study of grid impact of photovoltaic installations in Brazil according to Normative Resolution 482 and Federal law 14.300," Energy Policy, Elsevier, vol. 181(C).
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    1. Pires, Arthur Leandro Guerra & Miranda, Rafael de Carvalho & Rotella Junior, Paulo & Rocha, Luiz Célio Souza & de Souza, Francisco Matheus Gonçalves & Chicco, Gianfranco, 2025. "Optimizing hybrid systems and energy storage: Self-sufficiency and economic viability under metering policy changes," Energy, Elsevier, vol. 335(C).

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