Brazil raises import tariffs on photovoltaic modules to 25%

Brazil’s Ministry of Development, Industry, Trade and Services (MDIC) announced this week that it will raise the import tax rate on photovoltaic modules from 9.6% to 25%.

The tariff increase applies to photovoltaic (PV) cells assembled into panels or modules. The Executive Management Committee of the Chamber of Foreign Trade (Gecex-Camex) said it ruled in favor of the increase to strengthen local production and create jobs in Brazil.

The measure was taken at the request of module manufacturers BYD Energy Brasil and Sengi Solar as the main petitioners. The former is a unit of Chinese electric vehicle manufacturer BYD.

Isabella Sene, a technical-regulatory specialist at the Brazilian photovoltaic sector association Absolar, said on social media that the decision could culminate in a major setback for the country. He noted that the tariff increase could put 281 projects at risk of cancellation by 2026, representing more than 25 GW of solar capacity and over BRL 97 billion (USD 16.7 billion/EUR 15.8 billion) in investments.