Chamber of Mines works to have taxes on renewable energy projects eliminated

The Ghana Chamber of Mines has endorsed proposals for the government to eliminate all tariffs on machinery brought in for use in renewable energy projects.

Suleiman Koney, the company’s chief executive officer, claims that many people are unable to switch to using green energy because of the hefty taxes on the equipment that have become a deterrent to the private sector.

He had just inaugurated an 84 kilowatt solar PV installation for the chamber office when he spoke to Joy Business.

“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 that is required to encourage households and firms to invest in clean energy is still in an inchoate 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. Further, the absence of a net metering system implies that a consumer would be subsidizing the operational cost of ECG anytime the solar plant feeds its excess generation beyond its demand into the national grid,” he added.

The 84kWp installed capacity PV system, which was created to satisfy the secretariat’s electricity needs, was built for a total of $122,316.35.

According to the CEO, statutory taxes and levies account for about 11% of the contract cost, which works against the government’s aim for the energy transition.

The system can produce 111,000 kWh at its maximum capacity, and the chamber now uses less electricity from the national grid than it did before it started using the system.

On the basis of a number of assumptions regarding the currency rate and electricity cost, the payback period for the project is predicted to be less than eight years. renewable energy projects The infrastructure has a 25-year performance lifetime and a 10-year warranty period.