Gov't simplifies process for accessing solar tax credit

The Government is waiving the requirement for homeowners to get the Ministry of Science, Energy, Telecommunications and Transport's support in obtaining the income tax credit for residential solar photovoltaic system installations.

The ministry says the decision makes way for homeowners who have invested in solar energy to seamlessly access their tax benefits, "reinforcing the government’s commitment to achieving 50 per cent renewable energy generation goals by 2030".

Under the programme persons can access an income tax credit at the rate of 30 per cent of the acquisition and installation cost of a solar photovoltaic system for the taxpayer’s primary residence to a maximum cost of $4 million.

"We recognise the efforts of Jamaicans who have taken the initiative to invest in solar energy. This waiver will streamline the process for these individuals and facilitate the timely disbursement of their entitled tax credits," said Minister of Science, Energy, Telecommunications and Transport, Daryl Vaz, in a media release on Wednesday.

In the meantime, the ministry maintains that, starting April 1, 2025, a net billing licence will be a prerequisite for those seeking future incentives in accordance with The Electricity Act 2015 and The Electricity (Net Billing Regulations), 2022.

Only completely off-grid self-generators who are not connected to the Jamaica Public Service grid are exempt from licensing.

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