Govt to scrap import duties and VAT on solar panels and batteries

The Government has made plans to exempt imported solar panels and batteries from import duties and Value Added Tax (VAT) under measures aimed at reducing the cost of renewable energy adoption and expanding access to solar power.

The Finance Minister, Dr Cassiel Ato Forson, announced the proposed tax relief when presenting the 2027 Budget Statement and Economic Policy, dubbed the New Economy Agenda, to Parliament.

He said the measure was intended to lower the initial cost of installing solar energy systems and encourage households, businesses and public institutions to invest in alternative energy sources.

Dr Forson said Ghana needed to harness its abundant sunshine to strengthen national energy security and support economic activities across various sectors.

“Energy security is economic security. When a trader can keep her shop running, a farmer can power his irrigation, and a young entrepreneur can work through the night, our economy grows, and our people prosper,” he said.

He explained that access to reliable electricity was particularly important to traders, farmers and small-scale businesses whose operations depended on a consistent power supply.

The Minister said the proposed exemptions would make solar energy systems more accessible to households, farmers, schools, healthcare facilities and industries.

He urged individuals and businesses to take advantage of the incentives to invest in solar energy, noting that the country’s solar potential could support domestic energy needs, agricultural production, industrial activities and transportation.

Dr Forson said the policy also formed part of the Government’s broader renewable energy agenda to reduce dependence on conventional power sources and promote productive economic activities.

He further indicated that the exemptions would complement incentives under the Government’s 24-hour economy programme, which seeks to encourage businesses and industries to extend their operating hours.

“To secure our energy future, Government will exempt solar panels and batteries from import duties and VAT, strengthening incentives for households and businesses to go solar and lowering the cost of adopting clean energy,” he said.

The Minister said the initiative reflected the Government’s intention to use tax incentives to make renewable energy investments more affordable and accessible to the public.

He called on households, farmers and businesses to consider solar energy solutions as part of efforts to improve energy security and make greater use of the country’s natural resources.

Judith Twumwaa, ISD