According to Bloomberg News, under new government policies, Brazil’s PV solar panel sales may soar to $3 billion within 20 years.
While Brazil last year installed less than 1% of what Germany installed, new net metering rules announced by Brasilia-based Agencia Nacional de Energia Eletrica may cause a massive shift in sales.
Agencia Nacional de Energia Eletrica’s partner Blue Sol Ltda. now expects PV solar panel sales to increase by nearly 50% annually as homeowners look to cut their power bills. This is due to the fact that Brazilian electricity prices are sometimes double the rates in some US markets, and are only increasing.
In order to achieve the lofty goal of $3 billion in sales, Brazil may install upwards of 300,000 rooftop PV panels by 2030.
Currently, there are only about 4 megawatts of capacity installed.
Brazil’s geographic situation is extremely advantageous for solar developers. Due to its location straddling the equator, Brazil is not short on sunshine; making it possible the nation could produce 1,400 kWh from each kilowatt of capacity annually.
Brazil’s market is also primed for solar thanks to aggressive government support of large solar projects. Projects with capacity over 30 MW qualify for an 80% discount on fees for using power distribution and transmission systems.
Of course, slightly smaller projects are still being proposed. State-controlled Eletrosul Centrais Eletricas SA and Tractebel Energia SA proposed a project with a 24.6 MW capacity last year. If all goes according to plan, all of these projects could start construction by the end of 2013.
Brazil Could See $3 Billion in Solar Sales originally appeared in Green Chip Stocks. Green Chip Review is a free 2x-per-week newsletter, is the first advisory to focus exclusively on investments in alternative and renewable energies.