Brazil has seen a remarkable transformation in its electricity generation mix, with distributed solar power becoming the fastest-growing source of new capacity. Since 2019, the rise of distributed solar has driven the overall growth in Brazil’s electricity generation capacity. From less than 1 gigawatt in 2018, distributed solar generation expanded to 40 gigawatts by June 2025, accounting for 43% of all new capacity added during this period.
The foundation for this rapid growth was laid in 2012, when the Brazilian Electricity Regulatory Agency (ANEEL) introduced net metering policies. These policies allowed owners of small renewable generation systems to sell excess electricity back to the grid in exchange for billing credits. Initially, systems up to 1 megawatt in size, including solar, wind, hydro, biomass, and cogeneration, were eligible. In 2015, the capacity limit was raised to 5 megawatts for solar and most renewable sources, while small hydropower was capped at 3 megawatts. Further changes came in 2022 and 2023, when new regulations limited systems with storage to 3 megawatts but maintained the 5-megawatt limit for solar without storage.
Compared with distributed solar, utility-scale solar capacity has grown at a slower pace. By June 2025, Brazil’s utility-scale solar capacity stood at 17.9 gigawatts, much lower than the distributed segment. In total, solar generation accounted for 23% of Brazil’s overall electricity generation capacity at mid-2025, showing its rising importance in the country’s energy mix.
The adoption of distributed solar has been especially strong among households and businesses. By June 2025, more than 3.7 million renewable distributed generation systems had been installed across Brazil. Solar photovoltaic dominates this sector, making up 99% of total distributed generation, while small hydro and wind share the remaining 1%. Unlike centralized power plants that send electricity long distances through transmission lines, these distributed systems produce energy near the point of use, typically on rooftops or commercial buildings, reducing transmission losses and boosting local energy independence.
Certain states have emerged as leaders in distributed solar adoption. São Paulo leads with 5.8 gigawatts, followed by Minas Gerais with 4.9 gigawatts, Paraná with 3.7 gigawatts, Rio Grande do Sul with 3.4 gigawatts, and Mato Grosso with 2.6 gigawatts. São Paulo overtook Minas Gerais in 2022, supported by favorable state-level energy policies and tax concessions encouraging solar installations.
Brazil’s solar growth story shows no signs of slowing, though its exact pace remains uncertain. ANEEL data lists 122 gigawatts of planned utility-scale solar projects as of June 2025. However, only 6 gigawatts are under construction, highlighting a significant gap between announced projects and those moving forward.
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