Brazil expands rural financing to include battery energy storage

Brazil’s 2026/2027 Plano Safra agricultural financing program will, for the first time, make battery energy storage systems eligible for financing under selected rural credit lines.

The program, announced by the Ministry of Agriculture and Livestock, provides a record BRL 525.1 billion ($101.5 billion) for the country’s agricultural sector, an increase of BRL 8.9 billion from the previous edition. Industry association Absolar said the inclusion of battery storage follows proposals it submitted to the federal government.

Under the updated program, credit lines including Inovagro and Prodecoop can now finance battery energy storage systems, supporting renewable energy projects and improving energy security for rural businesses.

Absolar said average interest rates under the program have fallen to between 8% and 12.5%, compared with 8.5% to 14.5% previously, although borrowing costs remain elevated because of Brazil’s benchmark interest rate.

According to the association, Brazil’s agricultural sector has installed about 6.3 GW of solar capacity, representing more than 13% of the country’s distributed solar generation. More than 806,700 rural properties now use photovoltaic systems.

Absolar said combining solar generation with battery storage can help farms lower electricity costs, improve energy reliability, reduce exposure to tariff volatility, and support applications including irrigation, refrigeration, livestock production, telecommunications, and property monitoring.

From pv magazine Brazil