September 9 (Renewables Now) - Brazil's Santa Catarina state is granting a tax exemption for micro and mini renewable distributed generation (DG) systems, the government announced last week.
The measure is part of an initiative by the National Council of Finance Policy (Confaz) and concerns power generation from solar, hydro, wind and biomass. To receive the exemption from the ICMS tax for goods and services, DG systems should not exceed 1 MW of installed capacity.
Rural areas where farms have photovoltaic (PV) installations can meet their own consumption and, at the same time, send surplus electricity back to the distribution grid, the government noted.
Santa Catarina currently has 5,706 DG units exceeding a total installed capacity of 66 MW. Overall, the state is taking the fifth place in the national ranking, behind Minas Gerais, Rio Grande do Sul, Sao Paulo and Mato Grosso.