Photovoltaic is gaining popularity in Poland, and more and more households and businesses decide to invest in solar energy. However, the forthcoming changes to the taxation government may importantly affect the profitability of specified investments. The Ministry of Finance plans to amend the Act, which may origin multiple increases in taxes imposed on photovoltaic farms. What does this mean for installation owners and the full RES sector?
What Changes in Regulations?
So far, photovoltaic farms have been subject to a 2-percent construction tax, which most frequently only included supporting structures. However, the fresh draft law does not include precise guidelines for the taxation of photovoltaic installations, which raises concerns about the anticipation of charging taxation on the full value of installations, including photovoltaic panels. This may lead to municipalities seeking additional income starting to charge higher taxes on full installations.
According to the estimates of the owners of PV farms, the fresh rules can increase the taxation burden even 10 times. For an installation with a capacity of 1 MW, this would mean an increase in taxation from current PLN 5-10 1000 per year to PLN 50-60 thousand.
Consequences for the Photovoltaic Market
The proposals of the Ministry of Finance rise serious concerns in the solar industry. Andrzej Nentwig of the Polish Solar Energy Association points out that the deficiency of clear rules can lead to taxation of the most costly components of the installation, specified as photovoltaic panels. Moreover, possible taxation without taking into account the depreciation of these components can become an additional burden for solar power plants, especially those that have been operating for a long time.
The taxation increase could drastically reduce the profitability of investments in PV. In the face of low energy sales prices and downtimes resulting from network exemptions, additional taxation costs may make any farms unprofitable.
What's next?
The amendment of the Act on Local Taxes and another regulations is inactive the subject of work in the Ministry of Finance. The planned changes would enter into force in early 2025, but the task in its current form concerns only commercial farms alternatively than home prosumer installations. any experts propose that the ministry may aim to limit the improvement of large photovoltaic farms and to increase prosumer participation in the national energy mix.
What are the Perspectives?
Concerns about the fresh rules are justified, especially as they may slow down the improvement of RES in Poland. The owners of photovoltaic farms call for clear and precise rules that will not discourage investment in renewable energy sources. Entrepreneurs and investors will be anxiously awaiting the final form of the regulations, which may affect the future of solar energy in Poland.
More here:
Changes in Photovoltaic Taxation: Are Giant Raises Waiting for Us?
