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Global Solar PV Market Report

Key Regional Markets


Solar PV Capacity


GDP (Current Prices) USD (2022)


GDP Growth Forecast (constant prices) (2023-2027)
Brazilian Real
Country Credit Rating (S&P)
Renewable Energy capacity (2022)
Solar PV Share in Renewables (2022)
Renewable Energy Target

Generate 48% of the national energy demand from wind and solar sources by 2027.

Achieve 45% renewable power in the energy mix and 23% renewable power in electricity generation by 2030

GDP Source: IMF WEO, S&P and IRENA

Brazil continues to be the largest energy market in Latin America with opportunities across many subsectors. Most importantly, the Brazilian Energy Planning Agency (EPE) Energy Expansion Plan (PDE) for 2021-2031 indicates that renewable energy will remain a high priority in Brazil’s energy market, accounting for about 50% of the energy matrix between 2021 and 2031. Further the country also aims to generate 48% of the national energy demand from wind and solar sources by 2027. In addition to historically supportive government policies, well-established infrastructure, and abundant natural resources, Brazil has all the necessary ingredients to support clean energy generation. A surge in wind and solar energy is taking place in the region, with Brazil entering the top ten countries for the first time with the most accumulated installed capacity from photovoltaic sources.


  • Implementation of new policy frameworks,liberal net metering policy, and PPA promotions

  • New transmission investment set to unlock new wind and solar capacity and allow for greater renewables penetration


  • Operational underperformance threatens to exacerbate existing problems with pricing, connection availability, and contract closures

  • Rework in civil construction and lack of training among professionals are causing a poor legacy during the commissioning phase

Renewable Energy Mix

Source: IRENA Renewable Capacity Statistics April 2023

According to the Brazilian Power Trading Chamber (CCEE), Brazil generated approximately 92% of its electricity in 2022 from renewable sources. Although a vast majority (63%) of the capacity is attributed to hydropower, its share has declined due to recurrent droughts and aging assets. In addition to drought risks, large hydroelectric projects also face regulatory hurdles because of flood threat. Consequently, wind and solar energy sectors are growing rapidly in the region, and each contribute 14% to the overall renewable energy mix.

Solar power in the country grew 4% YoY from 2021, whereas the share of hydropower decreased by 6%, thereby indicating a gradual shift of focus from historically predominant hydroelectric generation.

Installed Capacity: Status and Trend

Trend in Installed Solar PV Capacity

Source: IRENA Renewable Capacity Statistics 2023

According to the International Renewable Energy Agency (IRENA), Brazil entered, for the first time, on the list of the top ten countries with the highest accumulated installed capacity from solar source, rising from 13th place in 2021 to eighth in 2022. The country added c.10GW of solar power in 2022, ending the year with a cumulative installed capacity of 24GW. Solar capacity addition in the country expanded radically since 2017 accelerating at a CAGR of c.56% throughout the period till 2022.

The 2050 National Energy Plan (NEP 2050) highlights the importance of solar energy for Brazil’s energy mix. As a renewable energy source, solar power has become a competitive and affordable solution. It is quick to install and helps reduce electricity costs by up to 90%. As a result, Brazil’s solar sector attracted more than R$45.7 billion in new investments in 2022, a growth of 64% in relation to the financial values accumulated until the end of 2021.

Demand Drivers

Brazil accounts for almost 7% of the planet’s renewable energy production – outpacing its 3% share of the global population and 2% share of global GDP – and has long been a leader in biofuels and hydropower technologies. The country is now seeking to expand its energy innovation into new technological areas. To accelerate solar deployment, the government is working towards ramping up the participation of solar operators through implementation of new policy frameworks, liberal net metering policy, and PPA promotions.

The Brazilian energy sector is undergoing a transformation. This is a reaction to the recent energy crisis, in which dry summers caused a reduction in hydro reservoir capacity at a time of rising electricity demand. In recent years, the government has gradually realized that the power sector needs diversification to reduce its over-dependence on hydropower and increase the share of other renewable sources like solar and wind in its energy mix. As part of this strategy, attractive legislation is being introduced to unlock investment and enable increased adoption of solar. Solar PV’s  value  proposition  has  strengthened  in  recent  years due to the country’s attractive climate and solar irradiance characteristics, high electricity costs, and a fall in solar input prices.

The country updated the solar regulatory framework publishing the long-anticipated Law 14.300 that came into force on January 1st, 2023. In broad terms, the law introduces a new framework for distributed generation in the country (>60% of installed grid connected solar capacity), with a key feature lowering the eligibility criterion for net metering (to any solar PV systems below 5MW). The anticipation of this law has seen a recent surge in new small- scale solar project developments. The framework will remain in place until 2045, ensuring regulatory and legal certainty for owners of small-scale solar PV systems. For this small- scale distributed generation segment multiple financing options are also available from Brazilian public banks such as Banco Nacional de Desenvolvimento Econômico e Social (BNDES) and Banco do Nordeste.

Solar PPA agreements have gained traction in the Brazilian market and there are growing instances of corporates being involved in long-term PPAs to secure energy prices and meet sustainability goals. Scatec ASA signed a 20-year PPA with Equinor ASA and Hydro Rein for the Mendubim 531MW solar project. Additionally, in 2023, Brazil saw the longest corporate renewable PPA ever signed in Latin America. Atlas Renewable Energy has signed a 21-year PPA with Albras, the largest aluminum producer in Brazil for its 902MWp PV project. The solar farm is expected to begin commercial operations in 2025 and generate approximately 2TWh annually.

Market Opportunity

Solar distributed generation capacity in Brazil is growing rapidly. As of March 31, 2023, home and building owners have installed more than 1.8 million renewable distributed generation systems in Brazil, totalling about 19GW of capacity, the vast majority of which (99%) is solar. This sector is expected to maintain its dominance aided by the enactment of Law 5829, which sets out a seven-year transition period to introduce grid access charges in a phased manner. As the grace period ends in 2023, this year is expected to be flooded with installations. In this regard, energy storage is likely to play a crucial role in shaping the growth trajectory of the next phase of the distributed generation market in Brazil. Behind-the-meter energy storage market is starting to take off as this segment is already competitive in several Brazilian states.

On the other hand, grid connected utility scale energy storage development is still in its infancy. In 2022, Brazil launched its first large-scale energy storage system with a total capacity of 30MW/60MWh. The project is sited at an ISO CTEEP substation in São Paulo and required a total investment of US$27 million. With more than 8GW small and medium scale diesel generator sets connected to the grid, the replacement opportunity for battery storage is massive.

The government has announced its investment plan of US$9.5 billion in new transmission lines and infrastructure to boost solar and wind deployments. The plan is to hold at least three major transmission auctions in 2023 alone. The new transmission investment is set to unlock new wind and solar capacity and allow for greater renewables penetration across the country. Particular focus has been given on hybrid solar and wind projects, whose dual generation is believed to add greater stability to the country’s grid. This will be supported by simpler approval and interconnection processes so that the two distinct facilities operate under the same network and grant.

Brazil has seen multiple sizeable PV development announcements of late, validating its position as a fertile emerging market for solar PV. Cubico Sustainable Investments announced its acquisition of a 1GW PV plant in January 2023 whilst Atlas Renewables secured a loan in excess of US$200 million to fund a 438MW Brazilian solar PV project.


Source: BNEF Global PV Market Outlook
Note: The above data, as sourced from BNEF, are based on a ‘low’ investment scenario

New policy frameworks and laws will cause a rush in solar PV system applications and installations within a grace period to avoid grid charges. Consequently, solar power in Brazil is poised to retain its upward trajectory and overtake wind energy to become the country’s second largest electric power source. In 2023, the Brazilian Association of Photovoltaic Solar Energy (ABSOLAR) expects a 10GW expansion of solar energy in operational installed capacity, representing US$9.4 billion in new investments. Green hydrogen projects, which require solar or wind power, will also contribute significantly to future solar growth.

Hydropower generation is expected to decline from 2030 onwards due to an increase in non-hydro renewable energy use and frequent droughts, making solar more attractive. An increased focus on NEP 2050 and reducing fossil fuel fired energy means renewable energy from solar, wind, and bioenergy will gain much-needed support to achieve national net-zero goals.

Solar plants in Brazil, however, were hit by low performance in 2022 despite tremendous growth in the sector. The solar energy industry in Brazil faces new challenges, as operational underperformance threatens to exacerbate existing problems with pricing, connection availability, and contract closures. In a scenario where deadlines are tight, rework in civil construction and lack of training among professionals are causing a poor legacy during the commissioning phase. The PV segment could  be impacted by several other factors in the near future, including currency fluctuations, increased shipping costs, and a lack of skilled workers. However, the timely commissioning of ongoing projects and installation rush, supported by an updated regulatory framework and supportive grid is anticipated to boost solar PV installation capacity over the next few years. In this  regard, developing a clear vision for deployment and communicating amongst concerned agencies and operators is crucial to avoiding deployment bottlenecks.