In recent years, the DG (distributed generation) market has proven to be one of the most resilient sectors of the Brazilian economy, even in the face of challenges such as rising Selic rate and the valorization of dollar.
While many segments feel the direct impact of the macroeconomic scenario, the significant drop in the price of photovoltaic equipment and the evolution of financing conditions have kept solar energy as an attractive option for residential and business consumers.
To better understand this panorama and the segment's prospects, the Canal Solar interviewed Carolina Reis, CEO of My Solar Financing, one of the largest credit acquisition platforms for solar energy in Brazil.
During the conversation, the executive explained how the combination of technological innovation and new credit modalities has been driving the expansion of GD in the country, even in a scenario of high interest rates.
Carolina also shared valuable tips for those who want to invest in solar energy without compromising their budget and comments on the continued interest of financial institutions in financing solar projects.
Check out the full interview below:
Interest rates in Brazil are at one of the highest levels in recent years. How has this impacted the financing of solar projects in the DG segment?
The recent increase in the Selic rate and the more recent increase in the dollar in Brazil are always warning signs for the health of the Brazilian macroeconomy. This adverse scenario undoubtedly affects many sectors of the economy, as seen in the rise in food prices this year.
However, in the case of the distributed generation sector, there is a very unique scenario, which makes it almost “shielded” from these macroeconomic fluctuations in Brazil. The Brazilian DG market is supplied, mainly, by equipment imported from Asian countries, especially China.
As China and other equipment manufacturing nations are experiencing a high level of technological advancement, industrial scale and production efficiency, in addition to healthy competition for global markets, the final price for Brazilian consumers who install solar s in their homes, condominiums and businesses has fallen drastically in the last decade.
In addition to becoming cheaper, photovoltaic equipment is even more efficient, which makes it very attractive and further reduces the consumer's return on investment time.
Add to this the high level of radiation in Brazil and the constant increases in energy tariffs and, thus, we observe a national DG market advancing independently of changes in the basic interest rate and exchange rate.
To give you an idea, the drop in the price of solar s has exceeded experts' expectations over the past three years. The price of a solar fell, on average, by 60% from 2022 to 2025, with prices from Chinese manufacturers falling from USD 0,23/Wp to USD 0,08 Wp.
Not even the increase in the Selic rate and the rise in the dollar were able to reduce the return on investment in solar s. On the contrary, the price drop was so great that now investing in a photovoltaic solar energy system for a home or business may be the best way to use the owner's money.
With the prospect of further interest rate hikes, what can we expect for the solar market in 2025?
As explained above, the DG market should continue to advance robustly in Brazil, since the drop in equipment prices has raised the simplified rate of return on investment in solar s to 35% to 45% per year.
The return on investment in solar s in 2022 was around 20% per year and, therefore, the return on investment has practically doubled in the last three years.
Therefore, the growth of the DG market is expected to follow an upward curve in 2025, driven by the new credit solutions offered by integrators to end customers. Financing is currently the best option for acquiring a photovoltaic system for those who do not want to pay out of pocket.
Meu Financiamento Solar uses, for example, a credit concession model based on price per risk, that is, the better the customer's credit profile, the better the financing rate used.
According to our balance sheets, the financing installment, in most cases, is cheaper than the savings generated in the customer's electricity bill, even in this scenario of a high dollar and high Selic rate.
In this way, the solar energy system ends up generating enough savings to pay the financing installments and, in some cases, not only that, but it also generates a profit for the investor.
If interest rates remain high for a long period, what could be the main consequences for the photovoltaic sector?
Obviously, we hope that the Brazilian economy will return to better levels for the population. However, in the case of DG, as already explained, the drop in equipment prices, credit solutions and advances in efficiency and technology will maintain the attractiveness for consumers who want to install solar s, even in a more adverse macroeconomic scenario.
At times like these, what type of credit or payment might be most advantageous for those looking to invest in solar energy at this time?
As I said, when simulating the size of the system in of power, installation cost, equipment, number of installments on the payment slip and savings on the customer's electricity bill, Meu Financiamento Solar found that, in most cases, the financing installment is cheaper than the savings generated on the customer's monthly electricity bill.
And, in the worst case scenario, the installment slightly exceeds what the consumer already pays monthly on the electricity bill, which also brings it closer to the customer's reality.
The largest number of solar projects financed in 2024 on our platform were systems between 5,5 kW and 8,2 kW, used mostly in residences, which represented 31% of the projects financed in 2024 by the platform.
In these cases, the savings for the consumer range from R$500,00 to R$800,00 per month. This presents a very interesting scenario for the consumer making the decision to invest in solar s.
For the end consumer, what are the main tips for financing a solar system without compromising the budget?
The first tip is to get quotes from recognized integrators in the market, who have a history of installations and good customer reviews. Another point is to understand well how the system to be installed will be dimensioned.
The project must take into the property's consumption history and profile, the location's solar radiation level, the number of solar s and the structure of the roof or covering. All of this must ultimately provide economic advantages with a reduction in the electricity bill and a payback period of between three and five years.
It is also necessary to evaluate the financing model presented, so that it facilitates payment and leaves the monthly installment value similar to the customer's electricity bill.
How can the market work to minimize the impacts of high interest rates and continue to encourage the adoption of solar energy?
Integrators must maintain good partnerships with distributors and credit operators and always evaluate prices and conditions, to offer the end customer the best solar energy project proposal.
In the case of Meu Financiamento Solar, of all the credits released in the last year, residences lead by far in hiring, with 83% of the total. Other consumers who used the platform in 2024 were commercial establishments and residential condominiums.
The number of installments chosen by the end customer varied between 48 times, which represented 47% of the contracts, and 96 times, with 40%. The remaining 13% chose a payment plan with a smaller volume of installments.
Is there a customer profile that is being more impacted by the rise in interest rates? Small consumers, companies, agribusiness?
As I said, the adverse macroeconomic scenario affects almost all Brazilian sectors. Obviously, the increase in the Selic rate has reduced the competitiveness of the productive sectors and impacted household budgets. In these two cases, the installation of solar systems can even be an important alternative for reducing expenses and gaining competitiveness.
Could rising interest rates affect the competitiveness of solar energy in relation to other energy sources in Brazil?
I don't believe so, because the solar source has historically been the most attractive compared to other technologies, both in the Brazilian market and in the international environment.
In the case of DG, specifically, photovoltaic technology dominates almost all installations in Brazil, as it is modular, flexible, cheaper, easier to implement and has low maintenance requirements.
Do you believe there is room in Brazil for new credit models, such as financing lines linked to inflation, the dollar or even cryptocurrencies?
Of course, the Brazilian market for financing DG projects is highly competitive, which encourages constant innovation to bring the best options to end customers. In particular, Meu Financiamento Solar is the largest platform for acquiring credits for solar energy in Brazil, with 100% digital, fast and secure approval.
Banco BV's solution was created independently in 2020 with the aim of making the use of photovoltaic systems more accessible, and in 2024, it reached more than 45 thousand approved proposals.
BV bank's credit line for photovoltaic systems, made possible through the Meu Financiamento Solar platform, was elected for seven consecutive times the most cited financial solution by integrators and entrepreneurs working with projects and installation of solar s on roofs in Brazil, according to annual research by Greener.
In a scenario of high interest rates, have banks and financial institutions shown interest in continuing to finance solar projects?
In our case, we maintain our confidence in the Brazilian DG market and our efforts are directed towards always bringing the best and most innovative financing offers to the consumer.
The large volume of credit releases over the last year on our platform reflects the growing consumer interest in sustainable technologies that bring real savings to your pocket.
To give you an idea, Meu Financiamento Solar receives around 450 registration requests per month from entrepreneurs seeking to include the company's financing line in their portfolio of services to end customers.
According to our estimate, around 70% of these partnership requests come from new entrants into the integrator market.
The high volume of registrations on the Meu Financiamento Solar platform, which come from all Brazilian states, is a reflection of the growing business opportunities for solar energy entrepreneurs, especially with the financing facilities that have made a large part of the photovoltaic installations in properties viable.
Has the company studied alternatives such as differentiated installments, fixed or flexible rates, to minimize the impacts of the high Selic rate?
Our DNA includes ongoing innovation for the DG project financing market. We are always aware of changes in the profile and consumption of electricity in Brazil, in order to bring solutions aligned with the desires and new demands of consumers.
For those who are planning to finance a solar system now, what do you recommend: waiting for a possible drop in interest rates or acting now before they rise even further?
In fact, the growth of solar energy is a clear sign of the popularization of the technology in the national territory seen in the last decade.
With the constant drops in the price of equipment, the technology is spreading throughout Brazil and reaching consumers of different profiles.
Therefore, this is the best time to invest in solar systems in homes, businesses, condominiums and rural properties.
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