Kenya's Zero-Duty Solar Imports Cut Equipment Costs by 41%
By YourWatts Editorial · Source: Kenya Renewable Energy Association
Kenya's continued zero import duty and VAT exemption on solar equipment, in force under the Finance Act amendments, has reduced landed equipment costs for residential solar by an estimated 41% compared to neighbouring countries that apply standard customs duties and VAT. The Kenya Renewable Energy Association (KEREA) reports that the policy has been a key driver of the country's residential and small commercial solar growth, with installed off-grid and grid-tied capacity now exceeding 1.2 GW nationally. Kenya Power's net metering framework, which allows residential and small commercial customers to inject surplus generation back into the grid for credit, continues to operate but with significant variation in interconnection times across different distribution regions. The African Development Bank (AfDB) and the Kenya Energy Efficiency Fund (KEEF) jointly continue to provide concessional financing for residential solar+battery installations, particularly in peri-urban and rural areas where reliable grid supply remains a challenge. Kenya Bureau of Standards (KEBS) certification requirements ensure that imported solar panels and inverters meet minimum quality thresholds, helping to address concerns about substandard equipment that have plagued some other African markets. With Kenya's solar irradiance averaging 5.7 peak sun hours daily and electricity tariffs averaging USD 0.17/kWh, simple payback periods for grid-tied residential systems typically range from 5 to 7 years.