Photovoltaic module imports witness 21% decline in H1 2023, consultancy reveals

A recent survey conducted by Greener consultancy has unveiled a notable 21% reduction in the volume of photovoltaic module imports during the first half of 2023 compared to the same period last year.

In the first six months of 2022, the tally for imported modules had reached an impressive 9.9 GW. However, from January to June 2023, the cumulative figure stands at an estimated 7.8 GW.

Greener analysis, however, indicates that the 21% reduction is slightly less drastic than what the market had anticipated. This reduction can be attributed to regulatory and macroeconomic uncertainties, including the elevated Selic Rate since August 2022 (currently at 13.25% p.a.) and the mounting debt burden among the population, which has hindered access to credit.

Greener further suggests that the boost in the import index is a result of the anticipation surrounding large-scale developments slated for construction and operation between 2023 and 2024.

Conversely, distributed generation has impeded international purchases.

The report analyzes, “Consumers, influenced by macroeconomic and political factors, as well as by the initiation of transition rules proposed by Law nº 14.300/2022, adopted a more cautious approach towards investments in the Brazilian photovoltaic solar energy sector during the early months of 2023.”

Within this segment, the first quarter saw a slowdown in system sales, ranging between 60% and 70%, leading to a buildup of equipment inventory.

Full Stocks Impact 

The accumulation of full stocks has also contributed to the deceleration of small system imports, as noted by market experts consulted by the epbr agency.

The Greener report also highlights that the sluggish sales in the first quarter resulted in an accumulation of equipment inventory, which had been previously procured at higher prices compared to the current market rates.

The document underscores, “This pricing disparity affects the profitability of distributors, who are compelled to offer goods at lower prices to remain competitive. In some instances, this results in reduced margins, compromising the business’s profitability.”

The report suggests that the sector is poised for recovery, albeit at a more moderate pace compared to the previous year’s growth trajectory.

“Despite the drop in photovoltaic module sales and imports in the first half of the year, photovoltaic solar generation contributed nearly 4.7 GW to the grid. This is a reflection of the robust sales recorded towards the end of 2022,” the report notes.

In 2022, the Brazilian market observed a remarkable 58% upsurge in photovoltaic module imports from China, aggregating to nearly 18 GW. Brazil secured its position as the second-largest purchaser of Chinese equipment, trailing behind only the Netherlands, Europe’s logistical hub.

As of August, Brazil’s installed photovoltaic capacity surged beyond 33 GW, with distributed generation accounting for 23 GW of this total.

Source: EPBR

To read the origina text, please chek: https://epbr.com.br/importacao-de-modulos-e-sistemas-fotovoltaicos-caiu-21-no-primeiro-semestre/

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