Rio Grande do Sul exempts micro mini renewables systems from tax

April 11 – The Rio Grande do Sul state government announced on Friday it will exempt from tax, starting June 1, micro and minigeneration systems that use renewable energy.

Under the new law, small power systems connected to the conventional distribution energy network no longer need to pay the ICMS tax on goods and services for the surplus electricity supplied to the grid. The measure seeks to encourage the use of photovoltaic (PV) systems, but also promoted wind and biomass systems, said the government.

The tax exemption follows the guidelines set by the power sector regulator Aneel regarding the definition of the characteristics of micro or minigeneration systems as well as the agreement approved by the National Council of Finance Policy (Confaz). In Brazil, microgeneration systems have an installed capacity of up to 100 kW, while the mini have the capacity to produce up to 1 MW.

Currently, Rio Grande do Sul is the third state in Brazil with the highest number of micro and mini generation systems, a total of 186.

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