U Turn Over Tax on Solar Panels


News from Panama / Monday, June 4th, 2018

Well, this new energy tax provision did not last a week.  Thank goodness.

Due to the controversy that has arisen, the ASEP has decided to exclude from the discussion of adjustments to the Tariff Regime the proposal to tax the use of solar panels for self-consumption purposes.

Although the imposition of a fee for the use of solar panels for self-consumption purposes has been removed from the discussion, the Public Services Authority (Asep) stated that the 60-day deadline to receive comments on the subject is still valid.

See “Central America: $1.6 billion in Energy Projects

The decision made by the Asep was announced on Tuesday May 29, through a publication made on the institution’s social networks, where it explained that “ …The issue of tariff charges to customers with solar panels for self-consumption or other means of renewable generation has been excluded from the public consultation on the adjustment to the Tariff Regime. “

See also: “Energy projects in Panama” 

Regarding the subject, Prensa.com reports that ” … The proposal, which for now will not see the light, emerged in the context of the tariff review of electricity distribution companies ENSA and Edemet Edechi (Unión Fenosa), which will be in force from 2022 to 2026. It was never mentioned who had the idea of applying the rate, but it is assumed that the energy distributors were the ones who pushed for the proposal.

The article adds that “ … The measure would be a relief for customers and companies involved in the generation of solar energy, who warned of how harmful it would be to apply a penalty rate or tax to customers that take pressure off the energy distribution network.” 

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