Tashkent, Uzbekistan (UzDaily.com) — President of Uzbekistan Shavkat Mirziyoyev has instructed the State Tax Committee to remove restrictions on the use of tax benefits for the installation of solar panels.

Starting from 1 April 2023, individuals and legal entities installing renewable energy equipment with a capacity of up to 100 kW will be exempt from property tax, land tax on land used for this equipment, and income tax on profits from selling generated energy for a period of 10 years.

A presidential decree from 10 January 2024 introduced changes to the rules for granting these benefits.

Under the new rules, owners of renewable energy installations with a capacity of up to 100 kW are exempt from paying property tax for legal entities, land tax for legal entities, and income tax on electricity sales to the general grid for a period of 3 years from the date the equipment is put into operation.

Individuals are exempt from property tax and land tax on residential real estate (previously, the exemption applied only to the part occupied by the equipment).

When installing equipment with batteries with a capacity of at least 25% of the solar panels’ capacity, tax benefits will be valid for 10 years.

For individuals, tax benefits apply when installing renewable energy equipment with a total capacity of more than 1 kW per property, and these benefits can be used only once. The annual amount of tax benefit should not exceed twice the basic calculation value (680,000 soums) for property tax and the basic calculation value (340,000 soums) for land tax.

However, these changes have not yet been incorporated into the Tax Code and are therefore not currently being applied in practice.

The President also instructed Deputy Prime Minister Jamshid Kuchkarov and the leadership of the economic complex to expand opportunities for citizens and entrepreneurs to purchase energy-efficient equipment and solar panels.