Professor Christian Kwaku Amuzuvi from the University of Mines and Technology (UMaT) has urged the government to remove the 20% tax on solar PV systems. This move aims to promote the widespread adoption of solar energy across Ghana.
Professor Amuzuvi believes scrapping this tax will make solar technology more accessible and affordable for both households and businesses. He points to the success of previous incentives for Liquefied Petroleum Gas (LPG) adoption as a model for solar PV systems. He delivered this call during UMaT’s 13th Professorial Inaugural Lecture, focusing on “Driving the Green Energy Transition: Translating Ghana’s LPG Adoption Model to Residential Rooftop Solar PV Systems.”
Ghana's energy transition efforts have been slow, necessitating targeted incentives to boost solar energy uptake. The government recorded GHS 2.6 billion in Foreign Direct Investment (FDI) inflows, but specific investments into renewable energy adoption at the residential level remain a priority. Accelerating green energy adoption aligns with national goals for sustainable development and reducing reliance on traditional power sources, contributing to reduced energy costs over time for consumers.
“If we don’t go for it, nothing happens. We have nothing to lose if we go for it now,” Professor Amuzuvi said. He suggested the tax removal be temporary, perhaps for five to seven years, to establish widespread adoption. Once solar PV systems become common, the government could then gradually reintroduce taxes.
The removal of this tax could significantly influence the energy sector and household budgets. Decision-makers in government will need to weigh potential short-term revenue losses against longer-term benefits of a robust green energy infrastructure. This policy could stimulate demand for solar installations, create jobs, and reduce Ghana’s carbon footprint. The market will closely watch for any government response to Professor Amuzuvi’s proposal, which could significantly alter consumer choices and energy investment trends.
Increased solar adoption could alleviate pressure on Ghana's national grid, especially during peak demand periods. This aligns with broader economic resilience strategies, reducing vulnerability to global fossil fuel price fluctuations. The success of the LPG program, where incentives led to widespread use, provides a compelling precedent for potential solar PV system growth. This shift could transform Ghana's energy landscape, making clean energy a staple in many homes.