Market Overview
The Brazil solar energy market was valued at USD 2.49 Billion in 2025 and is projected to reach USD 13.19 Billion by 2034. It is anticipated to grow at a compound annual growth rate (CAGR) of 20.35% during the forecast period from 2026 to 2034. This growth is driven by strategic commitments to energy diversification, declining photovoltaic technology costs, and favorable government policies supporting distributed generation. The country’s abundant solar irradiation and rising environmental awareness further foster expanding investments and market demand.
Study Assumption Years
- Base Year: 2025
- Historical Year/Period: 2020-2025
- Forecast Year/Period: 2026-2034
Brazil Solar Energy Market Key Takeaways
- The Brazil solar energy market size was valued at USD 2.49 Billion in 2025 with a CAGR of 20.35% projected from 2026-2034.
- Solar PV technology dominated with a market share of 92% in 2025, owing to its cost-effectiveness and scalability across distributed and utility-scale applications.
- Southeast region led the market with a share of 48.7% in 2025, driven by concentrated economic activity and advanced grid infrastructure in São Paulo and Minas Gerais.
- The market growth is bolstered by government reforms opening the energy sector by 2028, supporting self-production and competitive tariffs.
- Increasing investments in large-scale projects like the 142 MW solar farm by Scatec ASA in Minas Gerais enhance renewable capacity.
- Strategic collaborations, such as IFC’s $150 million investment to expand small-scale solar financing, foster broader adoption of solar technologies.
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Market Growth Factors
The Brazil solar energy market benefits from advancing solar technology characterized by improvements in solar module efficiency, durability, and cost-effectiveness. In 2025, TCL Solar launched advanced BC and TOPCon modules offering over 24.8% efficiency and enhanced durability tailored for Latin America. These innovations reduce costs and improve the sustainability and performance of solar energy systems, driving sector growth across residential and commercial applications.
Investment in large-scale solar projects significantly propels the market. For example, Scatec ASA’s 142 MW solar project in Minas Gerais, valued at $85 million and supported by a €25 million IFU loan, includes a power purchase agreement covering 75% of output. This facilitates economies of scale, lowers costs, and increases energy production, expediting Brazil’s renewable energy transition.
Strategic collaborations enhance access to financing for smaller solar systems, crucial for market expansion. In 2025, the IFC invested $150 million in BV Bank to expand financing for small-scale solar in Brazil, supporting renewable adoption among businesses and households. This initiative aligns with Brazil’s climate goals and helps overcome financial barriers.
Market Segmentation
- Technology:
- Solar Photovoltaics (PV): Dominates the Brazil solar market with a 92% share in 2025, credited to cost-effectiveness, scalability, and mature supply chain ecosystem supporting rapid deployment. The segment benefits from Brazil’s abundant sunlight and technological advances such as the first photovoltaic plant with sodium battery storage launched in the Amazon.
- Concentrated Solar Power (CSP): Included in the report but without specific market share data provided.
- Region:
- Southeast: Leading with 48.7% market share in 2025, supported by economic hubs São Paulo and Minas Gerais. The area has advanced grid infrastructure and higher disposable incomes facilitating premium installations.
- South, Northeast, North, Central-West: Mentioned as regions covered by the report without specific data detailed.
Regional Insights
The Southeast region leads the Brazil solar energy market with a 48.7% share in 2025. This dominance is supported by concentrated economic activities in São Paulo and Minas Gerais, availability of advanced grid infrastructure, and higher disposable incomes enabling premium solar installations. São Paulo’s installed solar capacity reached 5.8 gigawatts, marking a 38% increase over the previous year, illustrating robust regional adoption.
Recent Developments & News
In November 2025, Iberdrola initiated the “Noronha Verde” project to decarbonize the Fernando de Noronha archipelago by integrating solar energy with battery storage. This €50 million project aims to make the island the first Latin American inhabited oceanic island with a sustainable energy model and is part of Iberdrola’s €7 billion investment plan for Brazil.
Also in November 2025, Enel Group’s Arinos Solar Park in Minas Gerais, with a capacity of 611 MW and over 1 million solar modules, became a significant contributor to Brazil’s renewable energy. The plant generates 1.4 TWh annually, powers around 680,000 homes, reduces CO2 emissions by 790,000 tons, and supports local employment with over 3,500 jobs.
Key Players
- Canadian Solar Inc.
- Enel SpA
- Engie SA
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