Solar panels will now incur a 10% import tax, in an effort to prioritise supporting the local market.
However, the industry believes the move will see costs being passed on to the already financially-constrained South African consumer. Theoretically, he says, duties are normally imposed to protect the local industry, but in South Africa’s case, the local industry is extremely small and unlikely to ever be competitive with the likes of China.
Dr Rethabile Melamu, CEO of the industry body, believes the immediate implication is likely that a 10% price increase will be passed on to consumers to cover any potential problems or delays in importers utilising the rebate mechanism. Melamu explains that SAPVIA is only aware of three operational module assembly facilities in South Africa.
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