Since the implementation of the net metering policy in 2012, the distributed generation capacity of renewable resources (especially solar energy) in Brazil has grown rapidly. According to the Brazilian Electricity Regulatory Agency (ANEEL), as of March 31, 2023, Brazilian home and building owners had installed more than 1.8 million renewable distributed generation systems with a total capacity of about 19 GW, the vast majority of which It is solar photovoltaic.
In centralized generation, electricity is produced by power plants and sent to customers over long distances via transmission lines, while distributed generation is produced near the demand side, such as solar photovoltaic panels on the roofs of homes and businesses. In Brazil, solar photovoltaics dominate the distributed generation sector, accounting for 99% of the total distributed generation capacity; small hydropower and wind energy account for the remaining 1%.
ANEEL's electricity net metering policy initially allows small generators using hydro, solar, biomass, wind and eligible renewable cogeneration up to a maximum capacity of 1 megawatt (MW) to qualify for net metering transactions. In 2015, ANEEL amended the rule to increase the maximum allowable capacity of distributed small hydropower units to 3 MW and the maximum allowable capacity of other eligible renewable energy sources, including solar, to 5 MW. Eligible generators have the option to sell excess generation back to Brazil's national grid in exchange for bill credits. As part of the billing credit structure, net metering customers can receive credits for the day in which electricity generation exceeds consumption.
The states with the largest distribution of solar power in Brazil are located in the south and east: São Paulo (2.62 GW), Minas Gerais (2.60 GW), Rio Grande do Sul (2.08 GW) and Parana ( 1.87 GW). Brazil from 2022 sets new rules for future distributed generation units, allowing existing distributed generation producers to continue to enjoy the Brazilian Energy Compensation System (Sistema de Compensação de Energia Elétrica) established in 2012 until 2045. ) to formulate some preferential policies.