Cassiel Ato Forson announces tax exemptions for solar panels and batteries

Finance Minister Dr. Cassiel Ato Forson has announced that the government will exempt solar panels and batteries from import duties and Value Added Tax (VAT). The policy is designed to make renewable energy more affordable and accessible to Ghanaians by removing significant fiscal barriers at the point of entry. This move is a central component of the government’s strategy to diversify the national energy mix and lower the cost of doing business across the country.

By removing these taxes, the government aims to significantly reduce the upfront installation costs of solar power systems for both domestic and industrial users. Dr. Forson noted that the country’s abundant sunshine remains an underutilized resource that can provide reliable power for critical sectors, including trade and agriculture. The exemptions are intended to encourage a mass shift toward sustainable energy, reducing the burden on the national grid while providing a stable, independent power alternative for households and small-scale enterprises.

The tax relief initiative is specifically aligned with the government’s flagship 24-hour economy program. A reliable and affordable energy supply is deemed essential for businesses to operate extended hours, particularly those in the manufacturing and retail sectors. By incentivizing the adoption of solar technology, the Ministry of Finance hopes to foster an environment where industrial productivity is no longer limited by the cost or availability of electricity from conventional sources.

Dr. Forson emphasized that these measures are part of a broader commitment to economic growth and environmental sustainability. While the announcement marks a clear policy shift toward green energy, it also signals the government's intent to provide immediate relief to consumers facing high energy costs. The government expects that these tax breaks will not only promote energy security but also stimulate the local market for renewable energy services and equipment installation.