The National Chamber of Photovoltaic Energy in Tunisia has called for the exemption of solar equipment from customs duties and value-added tax (VAT) to boost investment in renewable energy. Chamber head, Ali Al-Kanzari, stated that the current tax burden on solar equipment imports stands at around 60%, including 30% customs duties and 19% VAT. This has resulted in Tunisia having one of the highest tax rates on solar equipment in the region.
Al-Kanzari emphasized that the high tax burden has negatively impacted investment in the solar energy sector, both in residential and industrial areas. He noted that the installed capacity of solar power plants has only reached 100 megawatts, falling short of the planned 700-800 megawatts. Furthermore, only around 150,000 to 170,000 Tunisian families have adopted solar energy, out of a total of 4 million households, with an average installation rate of 40 megawatts per year over the past 15 years.
To address the energy crisis, which Al-Kanzari estimated at over 8.2 billion dinars, the National Chamber of Photovoltaic Energy has proposed a project called "Energy Citizenship." The project aims to equip one million low-consumption families with free solar systems over five years. The cost of each system, consisting of a solar panel, inverter, and protection equipment, is around 2,000 dinars, making the total project cost approximately 2 billion dinars.
Al-Kanzari suggested that the project could be financed by redirecting the annual electricity subsidy, currently allocated to this category, which amounts to around 400 billion millimes per year. He also proposed that the installation work could be distributed among over 1,000 licensed Tunisian companies, with a target of 200,000 systems per year, using "plug and play" technology or accelerating the deployment of smart meters.
The National Chamber of Photovoltaic Energy has found common ground with several national organizations, including the Organization of Professionals and the Tunisian Engineers' Order, to push for the inclusion of a full exemption from customs duties and taxes on solar energy equipment in the upcoming finance law. This move aims to support the sector and accelerate investment in renewable energy.
Al-Kanzari stressed that the current situation requires urgent action from the government and parliament to reduce the cost of solar equipment and mitigate the impact of the energy crisis, particularly during peak summer consumption periods. He called on lawmakers to intervene and adopt measures to support the growth of the solar energy sector.
The proposal to exempt solar equipment from taxes and duties is seen as a crucial step towards boosting investment in Tunisia's renewable energy sector. With the country's energy crisis showing no signs of abating, the adoption of solar energy is becoming increasingly important. The implementation of the "Energy Citizenship" project and the exemption of solar equipment from taxes are expected to play a significant role in addressing Tunisia's energy challenges.
Key points
- The National Chamber of Photovoltaic Energy calls for a full exemption from customs duties and taxes on solar energy equipment to boost investment in renewable energy.
- Tunisia's solar energy sector has been impacted negatively by high tax burdens, with the current tax rate on solar equipment imports standing at around 60%.
- The "Energy Citizenship" project aims to equip one million low-consumption families with free solar systems over five years, at a total cost of approximately 2 billion dinars.
