Five states join Brazil's tax exemption for small green systems
Solar rooftop. Author: David TREBOSC. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.
The Brazilian government announced on Tuesday, through its Official Gazette, that five more states have joined its tax exemption programme for micro and mini renewable systems.
Acre, Alagoas, Minas Gerais, Rio de Janeiro and Rio Grande do Sul are now part of the ICMS 16/15 Convention, developed by the National Council for Financial Policy (Confaz).
The programme grants total exemption from the ICMS tax on goods and services for all the extra power produced by distributed systems (DG) from hydro, solar and wind power facilities, thus avoiding taxes for the energy injected back into the network. The generator can also use its surplus to get credit for future monthly compensation from the local power utility.
The five new states join Goias, Pernamprbuco, Sao Paulo, Rio Grande do Norte, Ceara and Tocantins, which have already adopted the exemption, the government noted in its publication.