Taxation of the Sun passed, but may be delayed; GREAT

Bill pending in the Chamber postpones by one year the beginning of charging for the distribution costs of those who produce their own energy, using Solar Energy.

Nicknamed “taxation of the sun“, the charging of distribution costs for those who generate their own solar energy on systems connected to the network (on grid🇧🇷 is scheduled to start on January 7, 2023, according to the Distributed Generation Legal Frameworka law sanctioned by President Jair Bolsonaro this year. Bill 2703/2022 seeks to ensure compliance with the agreement signed between all parties, which is not being implemented correctly by the MME, Aneel and distributors.

Everything can change, PL that is being processed in the Chamber of Deputies can postpone the beginning of the collection by one year, to January 2024. Authored by federal deputy Celso Russomanno (Republicans), the PL 2,703/2022 adds 12 months to the original deadline, seeking a longer time for concessionaires to adapt. Last Tuesday (22), the Chamber approved an urgent request to speed up the processing of the PL.

Fundamental measure to correct deviations and ensure the application of Law nº 14.300/2022, which have caused numerous losses, delays and difficulties for Brazilian consumers. The statement is from executive president of the Brazilian Association of Photovoltaic Solar Energy, Rodrigo Sauaia🇧🇷 According to the executive, the National Electric Energy Agency (Aneel) and energy distributors have not been able to meet several of the deadlines of the lawwhich has had a direct impact on consumers interested in generating their own renewable energy.

“The law, approved in January of this year, provided for deadlines and commitments for each of the parties, including a maximum period of up to 180 days, counted from the date of publication of the article, for its full regulation by Aneel and implementation by concessionaires and permissionaires of electricity distribution. So far, the law has not been complied with, which has caused numerous obstacles, delays, losses and difficulties for Brazilian consumers”, comments Sauaia.

In the entity’s view, PL 2703/2022, authored by Federal Deputy Celso Russomanno, also brings a warning about the lack of transparency of the accounts presented by Aneel and sheds light on the possibility of protecting the distributors’ revenues and profits. The text proposes to extend by 12 months the deadline for filing requests for access opinion requests with current rules for consumers.

According to the association, the accounts presented by Aneel, on the costs of own generation of renewable energy and the possible transfer to consumers via the Energy Development Account (CDE), are incomplete and disregard the economic, social and environmental benefits of using solar energy in the roofs and small plots of land to the electricity sector, society and the country.

“In addition to the regulator’s lack of transparency, which did not provide the memory of the calculations presented, the accounts actually point to the financial volume that energy consumers will pay to protect the distributors’ profit margins, since the generation of energy itself reduces concessionaires’ revenue and can promote the reduction of tariffs for all consumers”, explains Bárbara Rubim, vice-president of distributed generation at Absolar.

Recent study by specialized consultancy Volt Robotics, commissioned by Absolar, points out that the growth of own generation of solar energy should bring more than R$ 86.2 billion in systemic benefits in the electricity sector for Brazilian society in the next decade. As a result, distributed generation will lower the electricity bill for all consumers, including those who do not have their own solar system, by 5.6% by 2031.

For Guilherme Susteras, coordinator of Absolar’s distributed generation working group, the regulation of the legal framework is strategic for the future of self-generation of renewable energy in Brazil and fundamental for the country’s sustainable development. “Therefore, it is necessary that the process of defining rules has a fair and balanced treatment, compatible with the scope and importance of the theme for Brazilian society”, he emphasizes.

Benefits of solar energy on roofs and small lots should exceed R$ 86.2 billion and lower the electricity bill of all Brazilians by 5.6% over the next decade.

What is the ‘sun tax’

THE own generation of solar energy is now exempt from part of the energy tariffreferring to distribution costs, even though the generators use the network to inject the energy generated in excess, generating credits that can be deducted from the electricity bill, in the case of homes and companies, or even sold, in the case of solar farms.

The Legal Framework for Distributed Generation establishes, among a series of other rules, that this cost will be charged to generators, which in practice slightly reduces the financial advantage of adopting solar energy, although it does not eliminate it.

In addition, the Law establishes that all installations of solar generation systems made before the entry into force of the “sun tax” remain under current rules – therefore, exempt from charging – until 2045.

That is, those who install solar panels at home today will still be able to enjoy the exemption, maintaining the current savings percentage, until practically the end of the useful life of their equipment, which varies from 25 to 30 years.

More time to think

If the start of the “sun tax” is actually postponed to January 2024, those who are still contemplating the idea of ​​adopting solar energy at home have a little more time to think and assess whether their own generation is really advantageous for them. .

It is important to make clear that the adoption of solar energy will most likely remain very advantageous for a number of people and companies even after the “sun tax” comes into force.

In addition, in the long term, it is expected that the cost of solar panels will decrease, as technology advances, which should compensate for the increase in the cost of distribution.

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