Solar financing was a key topic on the third and last day of the Intersolar South America trade show in Sao Paulo, Brazil.
Brazil’s baseline interest rate, the Selic, currently sits at 13,75%. The Central Bank of Brazil last been consecutively raising the interest rate since March 2021 to fight soaring inflation, which eased to 10.07% in July 2022. With high interest rates, the Brazilian PV market is particularly sensitive to the capex of solar projects. The levelized cost of electricity (LCOE) still takes a backseat in driving purchasing decisions.
The Brazilian federal government and some states have set up credit lines with more attractive interest rates to incentivize the installation of solar systems. Private banks like Santander and Banco Votorantim have marked their presence at Intersolar South America, while Aldo Solar, Brazil’s biggest distributor, announced a partnership with fintech Sol Agora, offering financing for both consumers and integrators. Other financing lines, like Banco Votorantim’s Meu financiamento solar, were also represented at the trade show.
The Brazilian PV market is headed for more growth over the next five years, but financing will play a key role in consolidating the market and focusing on quality. Companies that have been in the market for longer, with data from installations dating back five to seven years, believe opex and LCOE will become more important decision drivers.
The third and last day of Intersolar South America event was busy until the end. According to the organizers, Solar Promotion, the tradeshow had a record of around 44,000 visitors, surpassing the 28,000 visitors record of last year’s edition. The organizers put the number of attendees on the first day at around 13,000, and 18,000 on the second day. The show had more than 400 exhibitors. Next year’s show will feature an extra pavilion, bringing the total to four.
This post appeared first on PV Magazine.