THE Board of Investments (BoI) has approved the registration of a solar energy project undertaken by Nakashin Davao International, Inc., making it the Ffirst company to be offered incentives under the Energy EfFicency and Conservation (EE&C) Act.
In a statement on Wednesday, the BoI said Nakashin’s 519.2 kilowatt per hour photovoltaic roof system project qualifies for an income tax exemption (ITH) equal to 50% of the capital investment.
The project is estimated to cost P26 million and will be installed at the company’s food production facility. Nakashin produces agricultural and aquatic products for export to Japan and the European Union.
“The Department of Energy (DoE) has certified that Nakashin’s project meets the required standards for approval by the BoI, further supporting its alignment with the country’s sustainability goals,” the BoI said.
Signed into law in 2019, the EE&C Act aims to encourage the use of energy-efficient technologies to help achieve the Philippines’ renewable energy (RE) goals.
The government has set a target for renewable energy to make up 35% of the energy generation mix by 2030, rising to 50% by 2040.
“By adopting renewable technologies such as solar energy, businesses in the Philippines can significantly reduce their electricity costs and reinvest their savings in business expansion, boosting overall economic growth,” the BoI said.
“Nakashin’s solar roof system will not only reduce dependence on electricity from the grid, but also provide reliable and sustainable energy for its operations,” it added.
BoI Memorandum Circular 2023-006 provides that self-financed EE&C projects are entitled to the ITH incentive and tax exemption on imports of capital goods, raw materials, spare parts or accessories. — Justine Irish D. Table