EVALUTAION OF THE IMPACTS ON THE BRAZILIAN ECONOMY DUE TO THE INCREMENTAL INSTALLATION OF 1 MWP OF RESIDENTIAL SOLAR PV SYSTEMS USING THE INPUT-OUTPUT MODEL

Abstract

In April, 2012 ANEEL approved the resolução normativa 482, creating the Energy Compensation System (Sistema de Compensação de Energia - SCE). The SCE allows that distributed generation systems up to 1MW using supported sources, including solar PV, connected themselves to the electricity grid and inject the excess energy into the grid, creating energy credits that can be used later to reduce the energy bill. ANEEL understanding is that there would be a trade of energy, without this credit being transformed into money. So, there should be no tax collection. However, São Paulo State Department of Finance (Sefaz-SP), through the Portaria CAT Nº 171 DE 27/12/2012 established that there would be collection of ICMS over the energy that is delivered to the grid to be consumed later. This decision was followed by the other states ́ Department of Finance, through the Convenio ICMS 6/2013. The collection of the ICMS poses as a severe threat to the adoption of distribution generation in Brazil, by reducing considerably the economic viability of these systems. This paper will evaluate the impacts of the installation of 1MWp of residential solar photovoltaic systems in the Brazilian economy. One way to support this source of energy is the exemption of ICMS collection on the photovoltaic generation. If in one way, there will be a reduction in direct ICMS collection, there will be an increase in jobs position and income and consequentially, an increase in indirect collection in ICMS and other taxes collections. This evaluation will be performed using the input-output model, calculating the direct and indirect effects on the economy due to the insertion of photovoltaic systems.