Framework Development for Enhancing Solar Financing and Installer Practices in Brazil


  • SOLICITATION NUMBER: 0002010008
  • INSTITUTION:  IFC
  • ASSIGNMENT LOCATION: Brazil
  • ISSUE DATE AND TIME: Jun 27,2024 18:08
  • CLOSING DATE AND TIME: Jul 22,2024 23:59

Brazil is one of the largest and fastest growing Distributed Generation (DG) markets globally due to (i) strong solar radiation; (ii) declining costs of solar systems; (iii) high electricity tariffs; and (iv) favorable regulation. Debt financing for distributed generation projects; which was very limited for many years in Brazil; has been rapidly increasing; reaching over US$4 billion in 2023; primarily to small residential and commercial projects from five leading FIs.A new solar DG law passed in 2022 has important implications for the continued growth of the sector. While the new law reduces the economic benefits of DG; the new regulatory certainty helps reassure the market. Given the new law; there are several potential market supporting activities that could be undertaken to help maintain growth momentum in the sector. These include:1.Better documentation of how the regulations may impact behind the meter (on-site) as well as remote generation projects in the next 10 years2.Identifying ways to make solar DG accessible to a broader range of customers by improving financing terms to make it more affordable for lower-income residential customers and SMEs3.Improving understanding of the existing expected losses in default; and potential future opportunities to reduce losses in default by establishing systems/markets for second hand/repossessed solar equipment.4.Enhancing the reliability of small solar systems by working on certification of installers and/or sharing of information between solar financiers on installer track records (to improve both project success and reduce customer defaults)IFC is seeking consultancy services to help understand these issues and develop a framework for how t                

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