Renewable energy bills : Taxes, rumors and facts

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AMMAN — According to Energy and Minerals Regulatory Commission spokesperson Tahrir Al-Qaq, the commission had asked all electricity distribution companies to inform citizens who are entitled to the subsidy to register on the pertinent platform immediately so that they pay their electricity bills according to the new, subsidized tariff.اضافة اعلان

The commission said that the old billing system has been canceled by the distribution companies, and the new billing system was adopted, based on the tariff approved by the government.

At the same time, it stressed that there is no going back on the decision to charge JD2 per kilowatt/capacity for photovoltaic systems exceeding 3.6 kilowatt/capacity. Subsidies have been approved for systems whose capacity is less than 3.6 kilowatts, which constitute 85 percent of the total renewable energy systems registered in Jordan.

Investor in renewable energy system Firas Balasmeh told Jordan News that imposing the JD2 tariff is reasonable, especially in the case of large systems, as the aim is to support the industrial sector, hotels, and large facilities.

He stressed that the maintenance cost of the grid fed by renewable energy producers is very high, and “citizens use the electricity network 14 to 16 hours daily”.

Balasmeh believes that rumors and citizens’ lack of sufficient understanding of this issue made many refrain from installing renewable energy systems, adding that citizens should be told that the JD2 tax per kilowatt is levied to compensate for the use of the Jordanian electricity network.

He said citizens are advised to install renewable energy systems to offset the expected “significant rise in food prices”.

President of Renewable Energy Establishments Society (REES) Mohammad Dado told Jordan News that the decision to charge JD2 per kilowatt/capacity will negatively affect companies that install renewable systems and may lead higher installation fees on this system later on.

Dado also said that the tax makes citizens distrust the legislation, and that the owners of the companies dealing in renewable energy have been negatively affected as many contracts were canceled due to the additional fee.

He noted that the price of the system itself was not affected by the decision, as it is linked to the cost of materials and labor, but that the cost of sustaining the electricity grid has grown for the citizen.

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