May 30 (Renewables Now) - Brazil's Parana state is granting tax exemption for micro and mini renewable generation systems for rural, commercial and residential projects.
The measure is part of a initiative by the National Council of Finance Policy (Confaz) and it concerns power generation from solar, hydro, wind and biomass. To receive the exemption from the ICMS tax for goods and services, distributed generation (DG) systems should not exceed 1 MW of installed capacity, the local government announced on Tuesday.
The generator can share its surplus with the local power utility for future monthly compensation on the electricity bill. The government aims to encourage the use of cleaner energy sources by its citizens and companies, State Secretary of the Treasury, Jose Luiz Bovo, said.
With this decision Parana joins the 22 other states that have already adopted the exemption.