The Fiji government has unveiled a broad renewable energy incentives package designed to speed private investment in clean power and support a transition to a low‑carbon economy, the Fiji Revenue and Customs Service (FRCS) said in a public notice on Friday. The measures, aimed at both businesses and households, introduce a range of tax breaks, duty concessions and refunds intended to improve project viability and provide longer‑term policy certainty for the energy sector.
Under the package, businesses investing in renewable energy projects will be able to claim a 100 percent tax deduction for capital costs on eligible projects, including solar power systems, biogas digesters, wind and wave technology, and water storage facilities. FRCS said provisional approval may be granted to establish project eligibility early, with final approval issued on completion provided all conditions are met — a mechanism intended to give investors greater certainty during project development.
The reforms also include a potential full income tax exemption for income from new renewable energy activities for up to 10 years, subject to approval by the FRCS Chief Executive Officer. Separately, companies undertaking research and development in renewable energy and information and communication technology may be eligible for an enhanced 250 percent tax deduction on qualifying R&D expenses, a step aimed at encouraging innovation and local capability building.
Households are included in the package: individuals who make capital investments in residential solar projects — such as solar water heaters and standalone solar lighting systems — can claim refunds on value‑added tax. For businesses importing approved renewable energy goods, the package offers duty concessions that may include fiscal duty‑free and import excise duty‑free treatment for specified equipment.
The government also said income from carbon trading activities will be exempt from income tax, a measure intended to encourage participation in emerging carbon markets and to create additional revenue opportunities for projects that reduce or remove greenhouse gas emissions. FRCS framed the suite of measures as part of the government’s broader commitment to energy security and long‑term policy certainty while advancing national climate goals.
The new incentives build on recent budgetary moves that have included targeted tax measures to stimulate economic activity. While the public notice sets out the range and intent of the concessions, approvals and exemptions remain subject to the specified conditions and to FRCS discretion where noted. The announcement is likely to be closely watched by independent power producers, developers of mini‑grid and distributed solar projects, and households considering rooftop systems, all of whom stand to gain from lower upfront and operating costs if the measures are implemented as described.