- The Ministry of Oil and Energy in Senegal has exempted equipment for the production of renewable energies such as solar, wind and biogas from VAT (value added tax).
- The government initiative is to accelerating energy access in rural areas.
Listed on the VAT exemption for the solar sector are photovoltaic solar panels, solar thermal collectors or panel, inverters, batteries for solar applications, regulators, solar home light kits, solar street lights as well as the solar pump kits comprising a solar panel, a controller and a pump.
For the wind sector, the following are exempt from VAT; wind turbine towers, blades, rotors, nacelle and hub.
The exemption from import VAT also applies to biogas production equipment such as the biogas stove, biogas flow analyser, prefabricated bio-digester, biogas pump, desulphurisation unit, water trap, biogas generator and substrate mixing unit.
According to the Senegalese Ministry of Petroleum and Energy, the new measures will reduce the acquisition costs of renewable energy production equipment by 18%. The government’s decision is part of a much broader strategy aimed at achieving universal access to electricity in this West African country by 2025.
Author: Bryan Groenendaal
