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Import tax exemption for solar energy equipment (Ley 57-07)?

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Franco Guaguanco

Dears,


we are planning out our move to the Dominican Republic, and want to make use of the duty free import of household goods when getting the residency. Our understanding is that these household goods would need to be in our possession/use for a while; ie. brand new items would not qualify and would be levied.


This brings me to my question: we are considering to bring in (new) equipment to upgrade out power system to be fully self-sufficient on Solar (essentially a grid supported system using lithium battery storage). Since this would be a couple of pallets of new equipment (alongside our household goods; same FCL), I'm looking at options to reduce the tax impact.


My understanding is that the system we're intending to install could potentially qualify us (or our SRL) as 'self-producer of renewable energy';  and under law 57-07 (decreto 202-08) this could qualify for exemption of import duties.


Does anyone on this forum have experience with importing of PV related components, and/or the mentioned law 57-07?

Any advise to share?


thanks,

Frank.

planner

Hi Frank,  I do not have any experience in this area. I hope others can help you!

Ian1272

Great subject :)

Franco Guaguanco

I found the website of the Comisión Nacional de Energía has some good information on the implementation of law 57-07 including specifics on the on the incentive plans:


DominicanadaMike

Be very careful. It seems like the electric companies here do not want you to have your own solar installation and are going to great measures to dissuade you from having it. I have a solar system with 23 panels and generate more electricity than I use and the electric company is charging me more money in some unknown form of tax than if I didn't have a solar system at all and was just paying the same price as everyone else. These companies here are dishonest and untrustworthy. It's not the US or Canada.

Franco Guaguanco

@DominicanadaMike,


Thanks for chiming in and flagging these concerns. Learning from people that have actual experiences in this space is essential to not get unpleasant surprises.


Is your experience with a off-grid system, a grid-supported system (ie. essentially a off-grid system but using the grid as fallback instead of a generator), or a grid-tied system that feeds back into the grid?


Given the instability and capacity issues in some of the grids I can fully understand some companies would be trying to dis-encourage feed-in as this would further destabilise the grid, but love to learn more about your situation.



The system I've planned out would be able to run fully independent from the grid on solar using a lithium battery bank; with option either

  • feed into the grid (simmer like a grid-tied system, so would require feed-in permit),
  • only charge batteries from grid (so the grid will only 'see' a battery charger), or
  • not use grid at all (and use a generator as backup).

Installation would be in El Limon / Las Terrenas.

DominicanadaMike

I have a grid tied system.  I live in the Punta Cana Bavaro area.  There is no advantage of producing your own energy here... The government and monopolized electrical companies are too corrupt.

ddmcghee

Las Terrenas and El Limon have different power companies. I suggest contacting the appropriate one and requesting their requirements for integrated solar. We are in LT and have three pages of info that must be supplied with our application.


Las Terrenas - (referred to as Luz y Fuerza)

El Limon - El Progeso del Limon - sorry, can't find a website!

DominicanadaMike

@ddmcghee:  Unfortunately, contract or no contract they do what they want. 

DominicanadaMike

A recent hearing:  RD 100% Renovable denuncia bloqueo paneles solares sería perjudicial


in english:


They affirm the blockade to the installation of solar panels on roofs prevents the

removal of electricity subsidy

Wednesday, May 3, 2023,

Santo Domingo, D.N.

At a press conference held this morning at the Vizcaya Restaurant in this

city of Santo Domingo, RD 100% Renovable maintained that the blockade to the installation

of solar panels on roofs that contains the new regulation that prepares the

Superintendence of Electricity, SIE, will prevent the removal of the electricity subsidy that

this past year it exceeded two billion dollars.

RD 100% Renovable, a coalition made up of cooperatives, installation companies

of solar systems, environmental and climate organizations, affirmed that the main and

The most immediate effect of installing solar panels on roofs is the reduction of

Families receiving the electricity subsidy.

“As soon as a family puts solar panels on the roof of their house, it is no longer

subsidized and becomes a generator of electricity for consumption and the

The surplus is transferred to the national system, helping to reduce the electricity deficit

of the country," he said.

He noted that rooftop solar panels also reduce electricity theft in

power lines through illegal connections, because the family that installs

solar panels formalizes its situation to be able to install the bidirectional meter and

sell to electricity distribution companies their surplus generation.

He denounced that the new regulation that regulates the installation of the panels for

self-consumption that the Superintendency of Electricity, SIE, intends to approve,

discourages the placement of solar panels on roofs by imposing a fixed cost for the

panels, power charge, installation request and inspection visits,

in addition to the payment for the electricity supplied by the distributor.

He pointed out that this regulation establishes a complicated procedure that the interested party

in installing solar panels on roofs must comply before the distributor of

electricity accept your request and install the two-way meter. "It's a real

obstacle course,†he commented.

He stated that with the approval of this regulation, the Superintendence of

Electricidad, SIE, is arranging for the opposite to be done to stimulate the

self-consumption of electricity and how it is done in other countries that promote

energy democratization.

He gave the USA and Spain as examples in which families are encouraged to install

solar panels on roofs, providing them with money or credit for the acquisition of the

equipment and installation payment.

“In the US, the federal government considers rooftop solar panels as part of

part of the strategy to deal with inflation because it allows families

use the savings from the payment of the electric bill to solve their needs for

food, education and healthâ€, he added.

He cited Bangladesh which is currently developing a massive program of

installation of solar panels as a mechanism to remove the electricity subsidy

that is drowning its economy and causing public indebtedness as in

the Dominican Republic.

He explained that in many countries the interested party installs solar panels on the roof of his

home and then communicates with the electricity distribution company so that

Install the bidirectional counter, without any prior procedure.

He wondered if you really want ceiling panels to become widespread in the country if

interested families are forced to pay the electric bill, a fixed payment for the

panels, by installed power, by request and by inspection visits, and above

that the payment of the loan with which he bought the equipment and paid for the installation of the

panels.

CEPM abuse

He said that CEPM is already applying the new regulation that has not yet been approved, for

both illegally and abusively, in Punta Cana, Bávaro and Bayahíbe, which are

granted to this company as isolated systems

As denounced by numerous customers in these locations, CEPM has doubled and

tripled the bill they pay for having solar panels installed on their roofs.

He reported that hotels in these towns that had installed solar panels have

preferred to dismantle them because the payment to CEPM is exorbitant, which will make it impossible

reducing the country's carbon footprint through rooftop solar systems.

RD 100% Renovable stated that what is happening today in the Eastern region with CEPM is

generalized to the whole country as soon as the Superintendence of Electricity, SIE, approves

and apply the regulations you have drawn up.

“As has happened in the locations concessioned to CEPM, throughout the country it will be

almost impossible to install solar panels on roofs, with which the country will lose a

highly efficient means of reducing carbon dioxide emissions, the subsidy

electric and importation of fossil fuels, at a time when the country

urgently needs to combat climate change and break free from importing

polluting, scarce and expensive fossils,†he noted.

He clarified that electricity and fossil fuel subsidies put pressure on

the country's international public debt increases, so the installation of

Solar panels relieve this pressure.

SIE would prevent massive project of solar panels for popular sectors

RD 100% Renovable highlighted that the approval and application of the regulation prepared

by the Superintendence of Electricity, SIE, would make it practically impossible to carry out

of the project prepared by the entity together with the Ministry of Energy and Mines, with the

purpose of installing in three years solar panels on the roofs of 180 thousand homes in

popular sectors, with an electrical generation of 600 megawatts.

He explained that this project seeks to reduce the electricity subsidy and large

losses of the distribution companies, in addition to contributing to cover the electricity deficit

of the country with clean energy from renewable sources.

“This project will be financed in a mixed way by the Government and the cooperatives of the

country so that popular sectors can equip themselves with solar panels on roofs, paying

for three to five years up to 25% less than what they pay today for the bill

electrical. Then they will pay nothing or very little, â€he pointed out.

He made a call to the Superintendence of Electricity, SIE, to align with all

the Government in the fight against climate change and with the Zero Carbon policy that

the President of the Republic, Luis Abinader proclaimed in the Expanded Council of Change

Climate, held last Friday, April 21, at the National Palace.

RD 100% Renewable

DominicanadaMike

We hope that we are making a difference in the battle against CEPM.  There is a large group of people fighting this.  If you wish to become part of that group, send me a private message with your name and phone number.  You will also need a copy of your invoice from CEPM showing the over charging...

2VPsoldier

I wish you luck - I haven't looked into the rules in Moca but my son-in-law will be installing panels for me as he did his own roof. He is a master electrician who is well known & sought after in the Moca/La Vega/Santiago regions. I am pretty sure he knows the rules but haven't had the chance to chat about this......but soon will.

DominicanadaMike

This will affect the whole country if they are allowed to get away with it. I have the latest decision today from Protecom denouncing CEPM and ordering them to return our money but it just continues like nothing changed.  We are now in month 5 of their criminal activities.

planner

Wow.   This is worth fighting! 

DominicanadaMike

We have social, local and National media coverage.  Something has to change!

planner

Interesting to note  - what they say, does not match what they are doing!  So yes, something needs to change.

Dave Morin

Great topic.  Has anyone imported solar equipment (batteries/inverter)  what is the import tax ?

Frank, Did you end up importing your solar equipment ?

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