Government of Ghana is being recommended to further reduce taxes on solar panels to improve the off-grid energy sources growth to address challenges confronting the energy sector. This is the appeal of some corporations involved in funding the energy sector.
According to them, although there has been a reduction in cost of solar panels, the increasing tax components on their imports limit their extensive use.
Christoph Anagbonu, the Managing Partner for the US African Development Foundation in Ghana said while speaking to media at a workshop for some beneficiaries of Power Africa’s funding for businesses in the energy sector that if the tax elements on these panels can be reduced severely, now the solar panels cost are coming down that will decrease the cost of the panel used in the designing of some of the projects.
He added a research conducted discovered that people complained about the preliminary capital involved in getting off grid projects such as solar systems. It is all about the mechanism that they are using, so they need tax incentives either a waiver completely or a reduction in how much they are expected to pay.
Since 2013 The USADF, USAID and General Electric (GE) Africa have provided about $300,000 funding support to 7 companies involved in the provision of off-grid energy solutions.
Although, Tom Coogan USADF’s Regional Director says the move will not ultimately end the continent’s power challenges, he is positivist of its contribution to significantly reduce the power challenge.
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