High default rates in subscription-based solar energy and high customer churn are challenging the opening of the free energy market in Brazil.
The advance of renewable energy sources in the country brings high expectations, but also reveals significant financial hurdles. A recent study conducted by the founders of Sun Mobi indicates that current credit and liquidity mechanisms urgently need to evolve.
This adaptation is essential to keep pace with the full opening of the free energy market, scheduled to take place gradually between 2027 and 2028.
The data reveal a scenario that requires caution from companies in the sector. Based on information from Wattio, which monitored 88,000 consumer units, the subscription-based solar energy segment faces a monthly average default rate of 17%.
Additionally, annual customer churn reaches a significant 40%, reflecting an unstable and highly dynamic market.
Governance and Working Capital Challenges
Electric sector specialists point out that the expansion of energy retail will demand much greater rigor from companies. It will be necessary to focus on improving governance, efficient working capital management, drafting more robust contracts, and assertive credit analysis.
Without these solid foundations, business growth could be compromised by financial volatility.
The expansion of energy retail will require greater attention to governance, working capital, contract robustness, and credit analysis to ensure the sector’s sustainability.
Another warning point raised by the study is the danger of a so-called price war. Unchecked competition, combined with information asymmetry between traders and new consumers, can threaten the financial health of companies betting on the energy transition.
Regulatory Impacts and the Future of the Sector
The complexity of contractual relations in the free contracting environment brings an additional risk: the overburdening of regulatory bodies. With contracts that are often difficult to understand, the trend is an increase in the volume of consumer complaints, requiring greater oversight and clarity in the rules of the game.
Looking ahead, the success of the market opening will depend directly on the maturity of companies and the creation of efficient financial safeguards. Strengthening clean energy in Brazil necessarily involves building a secure, transparent, and financially sustainable business model for all links in the chain.
