The Exemption from Profits Tax (Feed-in Tariff Scheme) Order and the Business Registration (Amendment) Regulation 2019 came into force The measure exempts individuals installing renewable energy systems at their residential premises from the relevant taxation obligations and business registration requirements.
The Government is committed to creating favourable conditions for the public to participate in the development of renewable energy. The Feed-in Tariff Scheme (FiT) introduced in 2018 allows investors in renewable energy systems to receive payments of $3 to $5 for each unit of electricity they generate, shortening the payback period to about 10 years.
To simplify the relevant procedures and facilitate participation as far as practicable, the Government pursued legislative amendments through the Exemption Order and Amendment Regulation to exempt individuals installing renewable energy systems at their residential premises from paying profits tax through participation in the FiT Scheme and also exempt them from the requirement to apply for a business registration.
Secretary for the Environment K S Wong said: "As at end 2019, the two power companies have received over 7,000 FiT applications, of which about 6,000 have been approved. The solar panels used in these approved applications can cover about 70 standard football pitches, while the annual electricity generated can power the residential units of two Tai Koo Shings.
"In comparison, only some 200 private renewable energy systems were connected to the power companies' grids in the decade prior to introduction of the FiT Scheme. This proves that the FiT Scheme and the related facilitation measures have been effective."
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