Abibinsroma Foundation congratulates government on Solar Energy Tax exemption in 2027 budget

Foundation says the decision is an important step towards climate action, affordable renewable energy and a Just Transition for all Ghanaians.

AbibiNsroma Foundation welcomes and congratulates the Government of Ghana on its decision, announced in the 2027 Budget Statement, to remove import duties and Value Added Tax (VAT) on solar panels and batteries.

We consider this an important step towards making renewable energy more affordable and accessible to Ghanaians, while demonstrating the country’s commitment to promoting clean energy and addressing the growing impacts of climate change.

For us at AbibiNsroma Foundation, this announcement goes beyond tax exemptions. It is an opportunity to accelerate Ghana’s transition to renewable energy, reduce dependence on fossil fuels and make clean energy a realistic option for more households, businesses and communities.

Ghana, like many other African countries, continues to experience the effects of climate change, including flooding, rising temperatures, coastal erosion and other environmental challenges. We believe that investing in renewable energy is part of the practical action needed to address these challenges and build a more sustainable future.

We are particularly encouraged by the potential of this decision to create opportunities for households, small businesses, farmers, women and young people who often face financial barriers to accessing clean energy.

As a Foundation, we believe that the energy transition must be fair, inclusive and beneficial to everyone, not just those who can afford it.

A STEP FORWARD IN GHANA’S CLIMATE ACTION

Expanding access to solar energy and battery storage can contribute significantly to Ghana’s climate ambitions. It can help reduce greenhouse gas emissions, improve energy security, support local businesses and create new opportunities in the growing green economy.

We also see this decision as an opportunity for Ghana to strengthen its contribution to the goals of the Paris Agreement and demonstrate leadership in Africa’s transition towards cleaner and more sustainable energy systems.

However, the success of this policy should not be measured only by the number of solar panels imported into the country. It should also be measured by how many ordinary Ghanaians, particularly those in underserved communities, can actually afford and benefit from solar energy.

A JUST TRANSITION MUST LEAVE NO ONE BEHIND

At AbibiNsroma Foundation, we strongly believe that climate action must put people and communities at the centre of decision-making.

Women, young people, low-income households, rural communities, coastal populations and small-scale businesses must not be left behind in Ghana’s transition to renewable energy.

We therefore encourage the Government to build on this announcement by introducing additional measures that will make the benefits of this policy reach ordinary people.

In particular, we encourage the Government to:

1. Make solar energy affordable: Promote accessible financing and credit facilities to help households and small businesses acquire solar systems.

2. Support women and young people: Create opportunities for women-led businesses and youth entrepreneurs in the renewable energy sector.

3. Invest in green jobs: Strengthen technical training and skills development in solar installation, maintenance and battery management.

4. Promote local industries: Encourage local assembly, manufacturing, innovation and investment in renewable energy technologies.

5. Reach vulnerable communities: Give particular attention to rural, coastal and underserved communities that face energy access challenges.

6. Protect the environment: Strengthen battery recycling, electronic waste management and responsible disposal systems to prevent future environmental pollution.

While welcoming this announcement, we encourage the Government to ensure that the tax exemptions are implemented effectively in 2027 and that the savings are reflected in the prices paid by consumers.

We also call on government agencies, civil society organisations, development partners, the private sector and community organisations to work together to ensure that this policy delivers real benefits for the people of Ghana.

We believe Ghana has an opportunity to make renewable energy a major driver of sustainable development, climate resilience, job creation and economic transformation.

Our message is simple: climate action must not only be about protecting the environment; it must also improve people’s lives.

AbibiNsroma Foundation remains committed to working with government, civil society, development partners and communities to advance climate justice, renewable energy advocacy and a Just Transition in Ghana and across Africa.

We congratulate the Government on this policy announcement and look forward to seeing it translated into practical benefits for all Ghanaians.

AbibiNsroma Foundation is a Ghana-based organisation committed to environmental sustainability, climate justice, community development and inclusive sustainable development. The Foundation works to promote locally led climate action, strengthen community participation in environmental decision-making and advocate for policies that respond to the needs and priorities of vulnerable communities in Ghana and across Africa.