Spain dials back ‘sunlight tax’ proposal

Image - Park Guell: Pajor Pawel/shutterstock.com

THE Spanish government is scaling down plans to charge individuals who generate power through solar panels, a policy that has been decried as a tax on sunlight.

Changes to the draft legislation, due to go before parliament in September, mean households or small offices generating energy from renewable sources of up to 10 kilowatts for their own use will not have to pay the tax on electricity produced outside of the national grid, reports Spanish daily El Pais.

They will, however, still face a smaller standing charge, which is aimed at covering the maintenance and other costs of the country’s electricity companies. 

However, larger companies looking to be self-sufficient in energy production will still have to pay both the standing charge and tax on the power they harness. 

Further new additions in the latest version of the proposal include a reduction in the amount of paperwork required to install solar panels.

On the Balearic Islands, the Canaries and in Ceuta and Melilla, there were will be further discounts and exemptions from the taxes on self-generation for producers of any amount of electricity. 

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