Case Study of the Impact of New Brazilian Legislation in the Year 2023 on the Economic Feasibility of Photovoltaic Microgeneration: Homes in the City of Fortaleza

Abstract

More than two-thirds of the installed solar power in Brazil comes from distributed mini-generation and microgeneration (DMMG), mostly residential and for local self-consumption of solar PV. DMMG had its legal framework approved in 2022, gradually introduces charges for distribution network use, previously exempt. To understand these implications, this article compiles recent legislative and normative changes, particularly for solar PV DMMG projects. In addition, the present study focuses on the use of DMMG systems in the city of Fortaleza in the Northeast Region. The study includes an analysis of the integration of photovoltaic plants in homes in Fortaleza and their economic viability under the new conditions established after 2020. Two residential photovoltaic systems, with varying power levels common in the residential sector of Fortaleza, were studied. Each plant underwent three analyses: one with vested rights; another with 100% taxation of FIO Bl and a third for the current scenario, factoring in the growing FIO B charge from 15% in 2023 to 100% in 2029. Customers who obtained the system by cash payment or financing were considered. An economic feasibility study factored in a 5.79% yearly inflation rate and an 11.35% annual tariff readjustment across the two plants, including sensitivity analysis for this variable.