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Zimbabwe introduces rebate on solar equipment for EV charging stations

by Staff reporter
3 hrs ago | Views
In a bid to accelerate the adoption of electric vehicles (EVs) and bolster the country's transition to cleaner energy, Zimbabwe has introduced a duty rebate on imported equipment for the establishment of solar-powered EV charging stations. The incentive, announced through Statutory Instrument 35 of 2025, is designed to reduce the financial burden on operators investing in solar-powered charging infrastructure.

A duty rebate refers to a reduction or refund of customs duties typically payable on imported goods. Under the new regulations, only operators approved by the Zimbabwe Energy Regulatory Authority (ZERA) can access the rebate, which covers essential components for setting up solar-powered charging stations. These include solar panels, inverters, EV chargers, battery storage facilities, charging control units, mounting structures, electrical wiring, monitoring systems, and grounding equipment for safety.

However, the rebate comes with specific conditions. Equipment imported under the rebate cannot be moved from one approved operator or location to another without the written consent of the Zimbabwe Revenue Authority (ZIMRA) commissioner. Furthermore, any entity benefiting from the rebate is prohibited from selling or disposing of the equipment without ZIMRA's approval and the payment of the waived duties.

The government's move is part of a broader strategy to stimulate the adoption of electric vehicles in Zimbabwe. As of January 1, 2025, the import duty on electric vehicles was reduced from 40 percent to 25 percent, making EVs more affordable and accessible to consumers. Despite these efforts, analysts point out the need for robust infrastructure to support the widespread adoption of electric vehicles.

"There has been a noticeable increase in interest in EVs in Zimbabwe, but the infrastructure to support them remains underdeveloped. The limited number of charging stations, particularly outside major urban centres, creates range anxiety and poses a challenge for those considering EV ownership," said Mr. Carlos Tadya, a Harare-based economic analyst. "Strategic investment in solar-powered charging networks, especially in remote areas, is key to ensuring EV owners have access to reliable and convenient charging options."

The lack of a comprehensive charging network, particularly in rural areas and along key transport corridors, is a significant barrier to the mass adoption of electric vehicles. Expanding access to EV charging points, through both public and private sector investments, will be crucial to addressing these challenges and building consumer confidence.

The government's introduction of the duty rebate is a positive step in this direction, encouraging operators to establish solar-powered charging stations that can provide a sustainable and reliable solution to the charging infrastructure gap. Solar-powered stations, in particular, are seen as a viable option, especially in areas where access to the national grid is limited or unreliable.

Meanwhile, Zimbabwe's horticultural industry is also calling for a value-added tax (VAT) waiver on solar equipment to encourage greater investment in off-grid energy solutions. The Horticultural Development Council (HDC) has highlighted the significant impact of power shortages on horticultural operations, which rely heavily on a constant and reliable electricity supply for irrigation, cooling, and processing. A VAT waiver would make solar energy more accessible and affordable for the industry, ensuring continued productivity and competitiveness.

The increased adoption of solar energy solutions by businesses across various sectors reflects a growing trend towards self-reliance and sustainability in the face of power grid limitations. According to ZERA, there are currently 29 energy projects underway, with 25 of them focused on solar photovoltaic technology. These projects are expected to add 1,688 megawatts (MW) to Zimbabwe's energy mix, with solar power alone contributing 403 MW. This underscores the country's increasing commitment to clean energy and the private sector's confidence in solar technology.

As Zimbabwe continues to expand its energy infrastructure, the development of solar-powered EV charging stations and off-grid energy solutions could play a pivotal role in driving economic growth, reducing reliance on fossil fuels, and enhancing the country's energy security.

Source - The Sunday Mail
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