Government has announced a series of renewable energy incentives aimed at accelerating investment in clean energy and supporting Fiji’s transition to a low-carbon economy.
In a public notice, the Fiji Revenue and Customs Service (FRCS) outlined key measures designed to encourage both businesses and households to adopt renewable energy technologies.
Under the package, businesses can access a 100 per cent tax deduction for capital costs related to renewable energy projects. These include investments in solar power systems, biogas digesters, wind and wave technology, and water storage facilities.
The incentives also provide provisional approval for project eligibility, with final approval granted upon completion, provided all conditions are met.
To further boost the sector, new renewable energy activity income can be fully exempt from income tax for up to 10 years, subject to approval by the Chief Executive Officer. The exemption is expected to improve project viability and attract private sector investment.
Companies engaged in research and development may also qualify for a 250 per cent tax deduction on eligible expenses, particularly in areas such as information and communication technology and renewable energy industries.
For households, individuals can claim VAT refunds on capital investments in residential solar projects, including solar water heaters and standalone solar lighting systems.
In addition, businesses importing approved renewable energy goods may benefit from duty concessions, including fiscal duty-free and import excise duty-free provisions.
Carbon trading activities have also been incentivised, with income derived from such activities exempt from income tax, encouraging participation in emerging carbon markets.
The Government said the measures form part of its broader commitment to providing long-term policy certainty and strengthening Fiji’s energy security while advancing national climate goals.
