Brazil slips to fifth place in global solar market amid slower capacity growth

Brazil fell from fourth to fifth position in the 2025 global ranking of photovoltaic markets, adding 14.5 GWp of new solar capacity—a 23 % decline from the previous year. The drop reflects challenges such as curtailment without compensation, grid‑connection bottlenecks, high capital costs, a volatile dollar and steep import duties on equipment. Despite the slowdown, solar now accounts for about 26 % of Brazil’s total electricity capacity, with over 70 GW installed, most of which (around 80 %) comes from small‑scale distributed and rooftop systems.

The rapid expansion of rooftop solar is driven by high residential electricity tariffs, favorable net‑metering rules introduced in 2012, and widespread consumer financing. Households can offset electricity priced at roughly $0.15–$0.30 /kWh, achieving payback periods of three to five years. Brazil’s net‑metering framework offers near‑full credit for excess generation, encouraging investment and bank financing, and distinguishing its market from neighboring countries where lower grid prices and less generous policies have limited residential solar uptake.