AbibiNsroma Foundation lauds Government over Solar Tax Exemption

Accra, Nov. 15, GNA – The AbibiNsroma Foundation has welcomed Government’s decision to remove import duties and Value Added Tax (VAT) on solar panels and batteries in the 2027 Budget Statement.

The Foundation described the move as an important step towards climate action, affordable renewable energy and a Just Transition for all Ghanaians.

In a statement issued in Accra by Mr Robert Amiteye, Convenor,  the Foundation said the exemption would make renewable energy more affordable and accessible, while demonstrating Ghana’s commitment to promoting clean energy and addressing the growing impacts of climate change.

“The announcement goes beyond tax exemptions. It is an opportunity to accelerate Ghana’s transition to renewable energy, reduce dependence on fossil fuels and make clean energy a realistic option for more households, businesses and communities,” the statement said.

The Foundation noted that Ghana, like many other African countries, continued to experience the effects of climate change, including flooding, rising temperatures, coastal erosion and other environmental challenges.

It said investing in renewable energy was part of the practical action needed to address the challenges and build a more sustainable future.

The Foundation said it was particularly encouraged by the potential of the decision to create opportunities for households, small businesses, farmers, women and young people who often faced financial barriers to accessing clean energy.

It stressed that the energy transition must be fair, inclusive and beneficial to everyone, not just those who could afford it.

Climate action
The Foundation said expanding access to solar energy and battery storage could contribute significantly to Ghana’s climate ambitions by reducing greenhouse gas emissions, improving energy security, supporting local businesses and creating new opportunities in the green economy.

It also saw the decision as an opportunity for Ghana to strengthen its contribution to the goals of the Paris Agreement and demonstrate leadership in Africa’s transition towards cleaner and more sustainable energy systems.

However, it cautioned that the success of the policy should not be measured only by the number of solar panels imported into the country, but by how many ordinary Ghanaians, particularly those in underserved communities, could actually afford and benefit from solar energy.

Leave no one behind
The Foundation said climate action must put people and communities at the centre of decision-making, adding that women, young people, low-income households, rural communities, coastal populations and small-scale businesses must not be left behind.

It therefore called on Government to build on the announcement with additional measures to ensure the benefits reached ordinary people.

The measures, it said, should include accessible financing and credit facilities to help households and small businesses acquire solar systems, opportunities for women-led businesses and youth entrepreneurs in the renewable energy sector, and strengthened technical training in solar installation, maintenance and battery management.

It also called for support for local assembly, manufacturing and innovation in renewable energy technologies, special attention to rural, coastal and underserved communities, and strengthened battery recycling, electronic waste management and responsible disposal systems to prevent environmental pollution.

Implementation
While welcoming the announcement, the Foundation urged Government to ensure the tax exemptions were implemented effectively in 2027 and that the savings were reflected in the prices paid by consumers.

It called on government agencies, civil society organisations, development partners, the private sector and community organisations to work together to ensure the policy delivered real benefits for the people of Ghana.

“Climate action must not only be about protecting the environment; it must also improve people’s lives,” the statement said.

The AbibiNsroma Foundation is a Ghana-based organisation committed to environmental sustainability, climate justice, community development and inclusive sustainable development.

GNA
Edited by Samuel Osei-Frempong