Micro mini renewables in Brazil’s Mato Grosso to be exempt from tax
November 9 – Starting from January 1, 2016, Brazil’s Mato Grosso state will give tax exemption for the power produced by local mini and micro distributed generation (DG) renewable energy systems.
The bill was approved last week by the National Council for Financial Policy (Confaz). Mato Grosso now joins six other states in Confaz’s 16/2015 tax agreement.
The paper grants total exemption from the ICMS tax on goods and services for all the extra power produced by DG systems from hydro, solar and wind power facilities. In addition to the ICMS exemption, the generator can use its surplus to get credit for future monthly compensation from the local power utility.
Currently, renewables account for 57% of Mato Grosso’s energy mix but the state has the potential to reach up to 75%, according to data from national power sector regulator Aneel.
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