Brazilian startup expands solar-for-hire venture

Renewable energy firm Brasil Solair has announced plans to expand its solar panel-for-hire business as it capitalizes on rising demand for microgeneration in Brazil.

The Rio de Janeiro-based startup said Wednesday it will this year begin offering lease agreements for 65MW of equipment in eight new states, mostly in Brazil's northeast.

The move comes a week after federal energy planning company EPE said higher electricity tariffs and tax breaks had made rooftop solar generation viable for 98.5% of Brazilian consumers.

Brasil Solair said the initiative, believed to be the only service of its kind in Brazil, is initially targeting low-tension commercial consumers.

"By assuming responsibility for the purchase and availability of equipment, the company [removes] one of the main obstacles to the popularization of microgeneration in the country," Brasil Solair said in a statement.

An additional incentive for microgeneration is the ability for consumers to export surplus electricity to the national grid, generating energy credits.

According to local power regulator Aneel, photovoltaic plants make up less than 0.1% of Brazil's 130GW installed power capacity.

In its latest effort to spur growth in the sector, the Brazilian government last month cut the PIS and Cofins social welfare taxes for photovoltaic equipment purchased by residential consumers.

The measure is part of a broader plan to increase distributed generation - on-site systems that do not require transmission or distribution lines.

The government plans to add 78GW of installed solar capacity to Brazil's distributed generation network by 2050.