Cassiel Ato Forson scraps solar equipment taxes in 2027 Budget

Finance Minister Dr. Cassiel Ato Forson has announced that the government will abolish import duties and Value Added Tax (VAT) on solar panels and batteries. Presenting the 2027 Budget Statement, the Minister described the policy as a strategic intervention to reduce high installation costs, which have long served as a barrier to renewable energy adoption for households and businesses across Ghana. By removing these fiscal burdens, the government aims to make renewable energy solutions more accessible to the average citizen and small-scale enterprise. The tax exemptions are aimed at enhancing national energy security and fostering economic growth by diversifying the country's energy mix. Dr. Forson emphasized that making solar technology more affordable will encourage private investment and alleviate pressure on the national grid. He noted that reliable and cost-effective energy is a fundamental requirement for the government's industrialization agenda, and these incentives are expected to drive significant activity in the renewable sector while supporting various economic branches. This initiative aligns with the broader environmental goals of President John Mahama’s administration, specifically the transition toward cleaner energy sources and a reduced reliance on conventional thermal power. Dr. Forson urged the public and corporate entities to take advantage of these fiscal incentives to shift away from conventional energy providers. The government expects these measures to stimulate the renewable energy market and ensure long-term sustainability for the power sector as the new fiscal policies take effect throughout the coming year.