Gov’t urged to remove 40% tariff on solar equipment

By Ernest Bako WUBONTO

The Chief Executive Officer (CEO) of Tino Solutions Limited, a leading renewable energy provider in the country, Postino Dugle has urged government to remove the about-40 percent import tariff on solar materials to drive down cost.

He argued that removing the duties is critical to making solar energy more affordable. This, he argued, would boost the adoption of renewable energy and support the country’s goal of achieving 30 percent renewable energy penetration by 2030 under its green transition plan.

He stressed that government’s drive for a 24-hour economy will depend on sustainable energy solutions, particularly solar, which remains the most cost-effective option for lighting up cities and enhancing security.

Mr. Dugle lamented that the high tariffs on solar equipment – including panels, inverters and batteries – are a significant barrier to affordability and widespread adoption.

“Most progressive countries have scrubbed taxes on solar materials, but we still have to pay about 40 percent on solar batteries, for example, and all the other components of the solar system are also heavily taxed. And so, if government can trigger the removal of all these unnecessary taxes on solar equipment in general, it will reduce the price and motivate most Ghanaians to embrace solar,” he told B&FT.

“Globally, the cost of solar equipment has been going down over the past 10 years and is currently at all-time low because the global north is adopting renewable energy and solar is the cheapest,” he said.

He emphasised that reducing the cost for individuals to afford will also free-up the national grid for critical manufacturing industrial industries and high-power consumption sectors to run 24-hour operations without power fluctuations.

24-Hour Economy

The foundation for implementing 24-hour economy consists of four elements: good governance, peace and security, macro-economic stability, physical and digital infrastructure.

The renewable energy company CEO stated that government’s proposed 24-hour economy policy and renewable energy are intertwined. Therefore, the initiative’s success depends on solar energy to power streetlights, which will be key for a brighter city where people are not living in fear for their light at night.

“Solar energy could become the backbone of a sustainable 24-hour economy because for that policy to be effective, we need to light up the streets and also ensure industries have lower cost of power – which is one of the highest costs in their production mix. However, the current import tariffs make it expensive for many households and businesses to transition to solar power. Removing these tariffs will not only reduce costs but also accelerate the penetration of solar energy across the country,” he stated.

Citing the Association of Ghana Industries (AGI’s) barometer report, he stated that about 40 to 45 percent of businesses’ operating costs are power-related. So, embracing solar will free-up capital for expansion, job creation and profitability.

“The bottom line is that cheaper energy will drive the 24-hour economy policy’s growth,” he reiterated.

The bottom-line goal of the 24-hour economy is to create new, decent jobs and reduce vulnerable work. In the current context of Ghana, decent work should – at the minimum -provide the worker a living wage.

Ghana’s Renewable Energy Master Plan

In Ghana’s Renewable Energy Master Plan, solar energy plays a central role as a key source for generating electricity particularly focused on achieving widespread rural electrification by utilising small-scale solar systems, aiming to significantly increase renewable energy’s share in the national grid.

Solar is identified as one of the most promising renewable energy sources due to Ghana’s high solar radiation potential, making it a significant component of the overall renewable energy target.

The country’s renewable energy master plan, which aims to increase the share of renewable energy in the national energy mix, sets a 30 percent solar target by 2030. This will also contribute to the country’s climate change goals by reducing carbon emissions.

Despite the challenges, Tino Solutions Limited and other renewable energy providers continue to champion the adoption of solar power. Mr. Dugle called on government to prioritise policies that support growth of the renewable energy sector.

“We have the technology and expertise to make solar energy a game-changer for Ghana. What we need now is the political will to remove the barriers and make it accessible to all,” he said.

The post Gov’t urged to remove 40% tariff on solar equipment appeared first on The Business & Financial Times.

Read Full Story