Jordanian experts have welcomed the government’s decision to reinstate the law exempting renewable energy systems from customs duties, bringing much-needed clarity to the market.

Dr. Maher Matalka, a board member of the EDAMA Association for Energy, Water, and Environment, explained that this decision fills the gap created by the cancellation of the previous exemption system. Without a replacement, the market faced uncertainty, forcing suppliers and developers to pay insurance on imported renewable energy systems without clear regulations.

Dr. Firas Blaser, an expert and investor in the sector, sees the renewed exemptions as part of a broader strategy to support renewable energy and promote sustainable development in Jordan. He believes it will stimulate investment in renewable energy projects, such as solar and wind power, contributing to national clean energy targets and reducing reliance on imported fossil fuels.

Blaser highlighted that zero customs duties and sales tax significantly reduce the production and distribution costs of renewable energy systems, making them more competitive compared to other energy sources and enabling companies to offer better prices to consumers.

Echoing these sentiments, Hatem AlZaabi, representative of the electrical and electronics sector at the Jordan Chamber of Commerce, emphasized that the new decision resolves the problem of delayed goods and stalled investments at customs centers. The previous lack of clear regulations had led to a halt in imports as businesses awaited guidance on the items covered by the reinstated exemptions.

The government had previously revoked the law exempting renewable energy sources from customs duties in April 2023, only to reinstate it this month under the same terms and conditions without explanation.

The government confirmed its approval to exempt renewable energy systems, equipment, energy efficiency upgrades, and production inputs that meet specific technical specifications from customs duties and sales tax, effectively reinstating the previous decision revoked in April.