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Does solar energy need subsidy?

Rafael Herzberg's picture
Consultant energy affairs, Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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  • Oct 19, 2020

Does solar energy need subsidy?

A typical solar energy project in Brazil has the following characteristics:

1) Investment of  R$ 5 600/installed kW 
2) Power production 150 kWh/month/kW installed
3) Amortization,, at a rate of 1% per month, for 10 years, is R$ 80/month
4) Equivalent to approximately R$ 0.5/kWh delivered

The current national average tariff, including taxes, for the residential sector, granted by the regulator (ANEE), is R$ 0.8/kWh.

So, what is your answer to the question that gives title to this post?

1 USD = R$ 5,6


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Rafael Herzberg's picture
Thank Rafael for the Post!
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