Confaz, the collegiate board of finance secretaries from all 27 state governments, on Monday published a consensual agreement and technical guidelines for the exemption of VAT, which often exceeds 20%.
This could speed up returns on investments that have been holding up the advance of a net-metering programme first introduced in 2012.
In a country where average income stands at about $8,000 a year and interest rates on consumer loans can easily top 50%, a residential PV array costing more than $5,000 is very expensive for most people, while the 20% VAT reduces further the advantage of the credits obtained from power injected into the grid.
Immediately
