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The Government will allocate $ 500 million to finance people who want to generate their own energy

August 14, 2018 - By Joseph Taylor

The government took a step further so that consumers across the country can generate their own renewable energy and sell the surplus to distributors such as Edenor and Edesur. The law that authorizes what is called “distributed generation” had been approved last December and this Friday the decree was published with the regulations in the Official Gazette.

Although there is still a resolution from the Energy Secretariat, which will be issued in the next few days, and some other regulatory provisions, the Government has already allocated in the 2019 Budget that has a half sanction of Deputies and will be treated in the Senate, $ 500 million that will go to a special fund. That money will be used to subsidize loan rates for the purchase of solar systems that allow users to generate their electricity. Today they leave between 3 and 4 thousand dollars for a consumption of 300 Kw per hour per month. Energy is already talking to banks to be the credit channels.

According to the Energy Secretary, Javier Iguacel, at a press conference, “there will be a credit subsidy so that the repayment of the investment is in no more than 7 years.” This term is for the Capital. For some provinces like C√≥rdoba or Santa Fe you can go down to 3 or 4 years. The cost of the installation – and not so much the equipment – is the most expensive of these solar systems, which have an approximate value of US $ 2 per watt.

Whoever wants to make the investment, will also have to request the change of meter in their distributor, so they can put a bidirectional one, that is, measure both the energy that enters and the one that leaves the house. The distributor can not refuse to buy the power, but the client can install up to the power equivalent to the one contracted. When selling, the user will pay the cost of the distribution anyway.

In the Government they believe that there will be more demand for these systems in the places where distribution is more expensive, because that charge is not charged when energy is consumed. The sale of energy to the distributor will be exempt from VAT and Profit.

There are another $ 300 million in the budget that will be allocated to tax credit so that SMEs also have options to finance the disbursement. “In addition, they can amortize VAT and Profits”, they explain in Energy. For the smaller companies, with a power of 20 KW, the cost could be between 25 and 35 thousand dollars.

For Iguacel, the standard “will give energy freedom to the customers of the network”. The idea is to add 1,000 MW of this type of generation until 2030.

Energy is developing a portal for customers who want to install these systems. First there will be an evaluation of the feasibility of connection, depending on the distribution network. With the approval of the distributor, the user will be able to do the installation and, with the verified equipment, a Distributed Electric Generation contract will be signed and the bidirectional meter will be placed.

The law also contemplates policies to promote the national industry of systems, equipment and supplies for distributed generation of energy from renewable sources through a tax credit and the possibility of accelerated depreciation of the Income Tax and the early refund of VAT. They will also have access to investment financing with preferential rates and the Supplier Development Program.

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