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Brazil's Rio Grande do Sul exempts micro, mini solar systems from ICMS tax

Solar cells. Author: Steve Rainwater. License: Creative Commons: Attribution-ShareAlike 2.0 Generic

January 21 (SeeNews) - Rio Grande do Sul state will exempt from the ICMS tax on goods and services the surplus of micro and minigeneration solar power systems.

For example, as soon as the new measure starts to apply, those who produces 250 kWh and consume 300 kWh will pay the tax only on the 50 kWh difference. At present, the tax is payed on the 300 kWh consumed.

The state expects the new measure to not only encourage its citizens to generate their own power, but also show investors that Rio Grande do Sul has a favourable environment for enterprises linked to photovoltaic (PV) power, said secretary of Mines and Energy Lucas Redecker.

Brazil considers microgeneration units all systems with an installed capacity of under or equal to 100 kW while mini-generation ranges from 100 kW up to 1 MW. Both need to use hydropower, solar, wind, biomass or qualified cogeneration as a power source.

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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