More taxes: Solar power for homes could cost 13% more

The analysis is based on the increase in PV module import tax and the change in China’s export advantage

The increase in the import tax rate on photovoltaic modules, from 9.6% to 25%, combined with the reduction from 13% to 9% of the tax benefit for exports by the Chinese government should have a direct impact on Distributed Generation (DG) market), with a 13% increase in the price of solar kits for homes. The evaluation is by Greener, a market intelligence consultancy company specialized in the photovoltaic sector.

Based on these changes, the company’s study projects the following scenario, considering a 4 kWp residential kit:

• Average increase in the price of photovoltaic modules of almost 26%;

• Increase in the value of the photovoltaic kit by 13%;

• 6.71% increase in payback time, going from 3 years to 3.2 years;

• If the freight value of modules imported from China continues to rise, representing 13.87% of the FOB (Free on Board) price, the impact on prices could be even greater: 43.42% for nationalized modules and 22 % for the photovoltaic kit, while the reimbursement would jump to 3.34 years.

In November, Greener also assessed the impact of increased import taxes on centralized generation (GC) projects, predicting a CAPEX increase of more than 8%. Importantly, imports are responsible for supplying approximately 95% of the domestic market. At the end of September, Brazil had already imported more than 16 GW of photovoltaic modules during the year.

“Fiscal and fiscal changes pose significant challenges to the entire solar chain, with a direct impact on the costs and attractiveness of projects, from small installations to large-scale projects. Despite this, photovoltaic energy continues to be important for the electrical matrix of the Brazilian economy, faced with the prospect of increasingly frequent and longer periods of drought, which are already affecting hydroelectric energy production. The sector has already demonstrated resilience in other adverse scenarios, and these numbers are a point of attention both for the residential consumers and large investors the best decision making,” says Marcio Takata, CEO of Greener.

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Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.