Photovoltaic (PV) energy has been identified as one of the main energy sources in transition from generation of electricity from non-renewable sources to renewable sources. In the Southern region of Brazil, despite the favorable conditions for implementation of distributed generation of photovoltaic energy, the installed capacity is much lower than the existing generation potential, evidencing the presence of factors that hinder the greater adoption and diffusion of this technology. Thus, this article identifies the panorama of distributed generation of photovoltaic energy and barriers that compromise its greater diffusion in the Southern region of Brazil, based on existing literature and qualitative interviews with professionals of the electricity sector. Results showed that this source of solar energy is expected to grow, but much remains to be done to consolidate it in the energy matrix, given the existence of technical, economic, social, managerial and political barriers. Among the main barriers identified are the poor quality of photovoltaic systems, the high cost of initial investment, the dependence on financing for purchase of solar panels, consumer culture, lack of knowledge about photovoltaic technology, the inefficient after-sales services, the dependence on imports of solar panels from China and lack of policies to encourage photovoltaic generation. The results of this study allow the understanding of the diffusion of the distributed generation of photovoltaic energy in countries of emerging economies or in regions where the implementation of PV systems is still incipient.