The Brazilian Development Bank (BNDES) keeps increasing its financial support for solar energy projects across Brazil.

The bank has approved a new methodology for the accreditation of PV modules and systems at a national level. The methodology relates to the evaluation of the domestic content requirements of PV products used in a solar project.

The new methodology, which provides a simplified procedure for the accreditation, is intended to support in particular PV projects for small and medium-sized enterprises. These types of installations will not have the “Fator N”, which is also known as “Nationalización Factor”, applied. This factor imposes that at least 56% of components of the modules used in PV projects completed by the end of 2017 are manufactured in Brazil. This percentage is expected to be increased to 64% in the period 2018-2019 and to 75% in 2020.

Furthermore, the new provisions include the highest level of financing for PV installations, which covers 80% of the project’s cost. Loans provided for these projects will have to be repaid in ten year, the BNDES said.

“The goal of this new rules is the consolidation of the Brazilian market and industry”, said the BNDES in its press release.

The “Fator N”, however, will be maintained for large-scale PV projects selected in the national power auctions. The BNDES, in fact, is granting funds only to PV projects developed with locally manufactured components.

The first financing for a large-scale solar plant was approved by the BNDES in early May. The bank granted a BRL 529 million ($168.4 million) loan for the construction of the Pirapora solar plant. The project is currently being developed by French utility EDF and Chinese-Canadian module manufacturer Canadian Solar, will be located in the state of Minas Gerais, but that it will use PV components manufactured in the state of Sao Paulo.

Howeber, only a minor part of the solar projects selected in the auctions are being built with the financial support of the BNDES.