- The Ghana Chamber of Mines has identified taxes on equipment imported for renewable energy projects as threatening the government’s energy transition agenda.
- The absence of a net metering system implies that a consumer would be subsidising the operational cost of the Electricity Company of Ghana.
The Ghana Chamber of Mines has identified taxes on equipment imported for renewable energy projects as threatening the government’s energy transition agenda. The Chamber believes these taxes were a disincentive for private companies who wish to switch to renewable energy. After the inauguration of the Chamber’s 84 kilowatts Solar PV system, its Chief Executive Officer, Sulemanu Koney, urged the government to revoke all taxes on equipment imported for renewable energy projects.
He said the high taxes on the equipment had become a disincentive to the private sector, hence the inability of many to transition to the use of green energy. Mr Koney said nearly 11 per cent of the contract cost of its solar system represented statutory taxes and levies, which was a disincentive to the government’s energy transition agenda.
He added, “You may be aware that the government of Ghana is fully aligned on the global initiative to transition to clean and sustainable energy. However, the ecosystem required to encourage households and firms to invest in clean energy is still in a rudimentary stage. While the government has exempted imported solar panels from VAT [Value Added Tax] and other levies, the payments for a completed project are still subject to these statutory taxes and levies.”
He said the absence of a net metering system implies that a consumer would be subsidising the operational cost of the Electricity Company of Ghana anytime the solar plant feeds its excess generation beyond its demand into the national grid.