South America Net-Zero Energy Buildings Market Outlook, 2031

Market Drivers

• Mandatory Efficiency Standards for New Buildings: Brazil's CGIEE Resolution No. 4/2025 introduces nationwide mandatory minimum energy-efficiency indices for new residential, commercial, service, and public buildings. Its phased implementation creates a predictable regulatory pipeline for architects, developers, equipment manufacturers, and energy consultants. Requirements for federal public buildings to reach Level A from 2027 and NZEB performance by 2035 are particularly important because they establish a visible benchmark for the wider construction industry and encourage greater use of efficient equipment, passive-design measures, and renewable generation.
• Distributed Solar and Public-Building Efficiency Programs: Strong solar resources and established distributed-generation capabilities make photovoltaic generation an attractive complement to building-efficiency improvements. The Procel Energia Zero program provides a direct example by supporting existing public-building retrofits that combine efficiency measures with distributed renewable generation. The program made up to R$100 million available in 2025, creating opportunities for engineering firms, solar developers, ESCOs, HVAC suppliers, and energy-management companies.

Market Challenges

• Limited Financing for Comprehensive Building Upgrades: Net-zero performance generally requires several measures to be implemented together, including efficient cooling, improved thermal performance, solar generation, electrical upgrades, and controls. The combined investment can be difficult for owners to justify when financing is expensive or project returns depend on long-term energy savings. Brazil has developed sustainable-housing and efficiency initiatives, but access to specialized financing remains less consistent than in more mature net-zero building markets. This can push developers toward individual efficiency measures rather than comprehensive performance-oriented projects.
• Uneven Technical Capacity Across the Region: South American countries differ considerably in building codes, certification practices, enforcement capabilities, construction standards, and availability of trained professionals. Brazil has a comparatively developed building-labeling framework, but smaller markets and secondary cities may have fewer specialists capable of energy modelling, commissioning, measurement and verification, and integrated system design. These limitations can increase project-development costs and make it harder to replicate successful demonstration projects outside major metropolitan areas.

Market Trends

• Expansion of Building Energy Labelling and Performance Verification: Building performance is becoming more measurable as Brazil strengthens the role of ENCE certification and introduces mandatory minimum-efficiency requirements for new buildings. Developers increasingly require energy modelling, thermal-performance assessments, documentation, and verification to demonstrate compliance. This is expanding the role of specialist consultants and digital tools alongside conventional construction and equipment suppliers.
• Solar-Integrated Buildings and Climate-Responsive Design: South American projects are increasingly combining passive measures with distributed solar generation rather than relying exclusively on mechanical equipment to reduce energy consumption. Shading, orientation, natural ventilation, efficient glazing, solar water heating, rooftop PV, and high-efficiency cooling can be designed as complementary systems. This approach is particularly relevant in Brazil, where strong solar resources and significant cooling requirements create an opportunity to reduce building energy demand while increasing on-site renewable generation.