Brazil Solar Power Market Outlook: Utility-Scale Project Growth, Distributed Generation Expansion

Market Overview

The Brazil solar power market size reached 58.5 GW in 2025 and is projected to grow to 164.9 GW by 2034, registering a CAGR of 12.20% during 2026-2034. This expansion is fueled by growing energy demand, abundant solar resources, government support, decreasing solar technology costs, and increasing corporate sustainability commitments. Distributed solar generation and supportive decentralized energy policies further boost market growth.

Study Assumption Years

• Base Year: 2025
• Historical Year/Period: 2020-2025
• Forecast Year/Period: 2026-2034

Brazil Solar Power Market Key Takeaways

• Current Market Size: 58.5 GW in 2025
• CAGR: 12.20%
• Forecast Period: 2026-2034
• The country surpassed 37 GW of installed solar capacity, leading Latin America in solar power.
• Large-scale solar projects are growing especially in Minas Gerais, Bahia, and Piauí.
• Net metering policies and tax incentives are enhancing investments.
• Power purchase agreements (PPAs) enable stable revenue for solar farms.
• Distributed solar generation is rapidly expanding across residential, commercial and industrial sectors.

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Brazil Solar Power Market Growth Factors

The Brazil solar power market has continued to develop as demand grows and solar availability increases, and large scale investments are made. In 2016 the International Finance Corporation (IFC) agreed to lend BV Bank up to USD 150 Million over five years to exclusively fund small-scale residential solar and thereby diversify Brazil's energy matrix while supporting consumer access to solar energy.

Secondly, generous government subsidies and falling prices for solar power products have reduced the barriers for domestic and foreign investors. Minas Gerais, Bahia, and Piau among the states display high insolation levels to produce solar energy at a utility scale. Power purchase agreements or PPAs guarantee reliable revenue streams. This reduces risk for investors. It creates conditions for further investment.

Third, distributed solar generation has seen important expansion, due to decreasing PV system costs, net metering mechanisms (under which consumers receive bill credits for the surplus electricity supplied to the grid), and financing options such as solar leasing, green loans and green mortgages. Brazil's issuance of USD 2 Billion of sovereign sustainable bonds contributed to environmental and social projects, and in particular renewable energy investments, aimed at supporting its NDC.

Brazil Solar Power Market Segmentation

Technology Insights:

• Photovoltaic Systems: Involves solar power generation via photovoltaic cells converting sunlight directly into electricity.
• Concentrated Solar Power Systems: Uses mirrors or lenses to concentrate a large area of sunlight onto a small area to generate thermal energy.

Solar Module Insights:

• Monocrystalline: Solar modules made from single-crystal silicon, known for high efficiency and durability.
• Polycrystalline: Comprised of multiple silicon crystals offering a cost-effective solar solution.
• Cadmium Telluride: Thin-film solar module technology with benefits in cost and manufacturing flexibility.
• Amorphous Silicon Cells: Non-crystalline silicon cells suitable for low-light conditions.
• Others: Includes other less common solar module technologies.

End Use Insights:

• Electricity Generation: Solar power used broadly for generating electrical energy.
• Lighting: Solar energy utilized specifically for lighting applications.
• Heating: Use of solar energy for heating purposes.
• Charging: Solar-powered charging of devices and equipment.

Application Insights:

• Residential: Solar installations in homes for self-consumption and net metering.
• Commercial: Solar power use in commercial buildings and enterprises.
• Industrial: Large-scale solar use in industrial operations and manufacturing.

Regional Insights

• Southeast
• South
• Northeast
• North
• Central-West

Recent Developments & News

• On February 18, 2025, Helexia Brasil announced plans to install four solar plants in Amazonas to advance local development and energy transition. Supported by the Brazilian Development Bank (BNDES), Helexia is building 17 solar plants totaling approximately USD 17.5 Million in capacity (19MW) in distributed generation.
• On February 10, 2025, French decentralized solar energy company GreenYellow secured BRL 85 Million in bonds to promote decentralized solar projects in Brazil. The 16-year bonds, arranged by Itaú BBI, leverage Brazil’s Law 14801 (March 2024) facilitating renewable energy financing. Funds will support five plants in Bahia, Mato Grosso, and São Paulo.

Key Players

• Helexia Brasil
• GreenYellow

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