Background

The Government of Brazil and the Ministry of Mines and Energy (MME) have targeted a 6400 MW reduction in additional capacity through energy efficiency by the year of 2030. To achieve this target, various measures are proposed, including the use of solar hot water heating (SWH) to replace the typical electric shower heaters present in nearly every household in Brazil.

The SWH sector has been growing steadily since the Brazilian energy crisis in 2001, but the growth is modest to create market transformations considering the country solar potential. There is a national plan to construct about 1.000,000 new houses for low-income population over the coming years, and this is an opportunity to be creative with incentives in order to accelerate the SWH market.

At the same time, many major Brazilian cities like São Paulo, Belo Horizonte and Porto Alegre have already approved or are in the process of adopting SWH laws. Implementing these laws will require the coordinated efforts of many stakeholders.

Purpose

To promote SWH in Brazil through the improvement of technical standards and necessary policy and regulatory frameworks, as well as formulating a plan that could be monitored, evaluated and scaled up. In parallel, structure / improve SWH finance mechanism aimed at the lower income population.

Main Activities

• Hold an international seminar to exchange experience and information with leading SWH specialists and technology providers
• Produce a white paper on the technology, finance, policy, environmental and social barriers that holds SWH development in Brazil
• Define/improve technical standards for low income household SWH systems
• Support the government in setting up a SWH finance mechanism for the low income population, operated by the National Housing Bank (CAIXA), integrating SWH into long-term finance during home construction.
• Document gains in energy efficiency and GHG emissions reductions.

Expected Impact

• Avoidance of additional installed capacity of more than 1,000 MW by 2015 through installing SWH units.
• SWH market growth rate increased in Brazil, particularly amongst low income families
• Reduced energy bills for low income population, allowing income to cover expenses such as health care and education.
• Clear SWH technical standards
• Job creation in SWH installation and maintenance, design and production.