Uzbekistan to Expand Green Energy with Removal of Solar Panel Tax Benefit Limits
In Bukhara region, only 10% of consumers who installed solar panels have received payment for electricity generated
In a recent meeting on the socio-economic development of Bukhara, President Shavkat Mirziyoyev announced that an additional $100 million would be allocated for the region’s development. The president emphasized that by implementing certain measures, the Bukhara region could save a significant amount of electricity and gas.
It was noted that by installing solar panels on 200,000 properties with a capacity of up to 3 kWh, 600 MW of electricity could be generated, offsetting 20% of the region’s electricity consumption. However, it was concerning that only 10% of individuals and legal entities who installed solar panels have actually received payment for the electricity they sold.
To address this issue, the president instructed officials to connect households, neighborhoods, and solar panel installers to facilitate the process of receiving payment for electricity generated. The goal is to stimulate the use of alternative energy sources and make energy-saving equipment and solar panels more accessible.
In order to further incentivize the use of renewable energy sources, the president ordered the Tax Committee to lift limitations on the use of land and property tax benefits for those installing solar panels. Additionally, the private sector will be more widely involved in supplying liquefied gas to the population.
According to a decree from last year, individuals and legal entities installing alternative energy devices with a total capacity of 100 kW are exempt from property tax, land tax, and income tax on profits from the sale of electricity generated by renewable energy sources. These tax benefits will last for three years, but can be extended up to 10 years if an energy storage system is installed.
Overall, the government is committed to promoting the use of renewable energy sources and ensuring that consumers who invest in solar panels are able to benefit from the electricity they generate. By implementing these measures, the Bukhara region can make significant progress towards a more sustainable energy future.
