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What is the sun tax and why was it removed?

sun tax

All of us who are committed to renewable energy and clean energy were outraged when the sun tax came into force. We explain what it consisted of and what contradictions have made it stop applying it.

Due to all the controversy that the sun tax generated, we want to explain some of the most controversial points about this tax and comment in passing on the reasons why it has finally been abolished. We hope it helps you as a consumer.

What is the sun tax?

The tax on the sun is the tax that was in force since 2015. The decree of law regulated how any installation for self-consumption or any installation that produces energy outside of it should be done, as is the case of solar panels for home. The bad reputation of this tax comes from some of its provisions. To begin with, it is recognized that the installation of this type of renewable energy reduces losses in energy transport.

This is because they are their own facilities for the places of consumption instead of coming from a centralized source. However, despite assuming cost savings, it was argued that there were fixed costs affecting line maintenance, supervision, etc. In other words, it is argued that renewable producers should provide financing to the system just like other consumers.

That is, even if they use these networks less, they must contribute the same as the rest of the consumers. And this is the first point to take into account: this cost is not borne by either private companies or the electricity grid itself, despite reporting the said benefits, but directly by renewable consumers.

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Why have they removed the tax on the sun?

The first reason the sun tax has been removed is because it charges the same amount twice. In effect, there is a central producer (electrical networks) that, in turn, sell their energy to a company that we subsequently contract. In this case, the company pays the supplier, but as consumers, the sun tax makes us pay the company (intermediary) and the producing electricity grid twice the same.

In addition to this, there are the reasons derived from energy dependence. The sun tax was a strong setback for the installation of renewables. This detriment occurred in a country where this type of energy is clearly a great bet for the future due to the number of hours of sunshine per day and, at the same time, due to the great energy dependence that Spain has. This sun tax arbitrarily raised an already expensive bill.

Save expenses for everyone

Likewise, it must be said that the sun tax is a great bureaucratic expense. Indeed, when it comes to removing the sun tax, the need to simplify bureaucratic procedures has been taken into account. For example, eliminating the mandatory registration in the energy production register. It was intended for installations not exceeding 100 kilowatts. With this, shared self-consumption is recognized in passing.

We hope this article has helped you understand why the sun tax did not benefit you at all. By the way, we encourage you to consult other articles related to the subject of energy.

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