This study investigates from a socio-technical perspective the emergence of Solar Photovoltaic electricity (PV) in Brazil and identifies challenges and opportunities of PV energy in the country. The research is based mainly on primary data from 2015 to 2016 including 15 in-depth interviews with representing relevant actors from the system. Additional written data involved resolutions, regulations and reports from the official government organizations. Multilevel perspective and the functions of innovation systems perspective were used for data analysis. The need for the dissemination of PV energy includes the establishment of long-term clear goals, fiscal and financial incentives, more attractive opportunities for investors as well as professional training courses. The paper includes a critical review of the applicability of the multilevel perspective and functions of innovation system with recommendations for adapting them to better fit this case. What is especially interesting to derive from the analysis is the impact of the niche developments on the regime and the landscape, especially in the establishment of a domestic PV energy industry, national economic growth, local and regional development, which would result from the dissemination of PV energy.