The reduction in the final price for consumers of photovoltaic solar energy has been driven mainly by the increase in Chinese production capacity, which accounts for 90% of the world’s production of this photovoltaic equipment.
The average 40% drop in the price of solar PV panels throughout 2023 in Brazil further increased the confidence of Brazilian consumers and the attractiveness of installing rooftop PV systems, even with the entry into force of new charging rules for the use of solar panels for using the electrical grid in distributed generation.
The analysis is from Portal Solar, a franchisor with more than 200 units spread throughout the country and around 20,000 photovoltaic systems installed. The reduction in the final price to the consumer, driven mainly by the increase in Chinese production capacity, which accounts for 90% of the world’s production of solar panels, improved the payback (return on investment time) between 10% and 20%. to Brazilians who adopted their own solar energy generation in 2023.
“It is evident, therefore, that the gain in scale of global production, the increase in the efficiency of solar panels and the consequent drop in the final price of photovoltaic technology not only dissolve the charges imposed by the new regulations in Brazil, but also increase the attractiveness and advantages of solar energy for consumers in the country, explains Rodolfo Meyer, general director of Portal Solar.
“Based on forecasts from consulting firm Wood Mackenzie for annual growth in demand for solar equipment, the forecast is that more than one terawatt (TW) of wafer, cell and module manufacturing capacity will be operational by the end of 2024, which means that only China will have enough production capacity to meet annual global demand until 2032,” he adds.
According to the executive, this scenario should maintain downward pressure on the price of photovoltaic solar energy equipment, making the investment even more attractive, even with the impact of the Brazilian government’s decisions that increased taxes on the import of panels. solar. “Chinese panel prices should reach the lowest level in history, around $0.10/Wp,” notes Meyer.
According to the simulations of the Portal Solar price table, a residence in Brazil that spends an average of R$ 500 on its monthly electricity bill, installing solar energy on the roof would cost around R$ 15,000 and with a return on investment of around 45 months. The final price varies depending on the region where the solar panel will be installed.
New solar energy generation installations on the roofs of homes and businesses reached 7 GW of added power in 2023, according to Portal Solar mapping. Between January and December, the country received more than R$ 36 billion in private investments for photovoltaic connections made by consumers.
In addition to the drop in the price of equipment, the increased use of solar energy by businesses and residential consumers was also driven by the increase in consumption caused by the heat wave and the increase in electricity rates in Brazil.
According to Portal Solar’s map, since 2012, Brazil has more than 25 gigawatts (GW) of accumulated energy from solar sources on roofs, facades and small plots of land, which supply more than 3 million consumer units in the country.