The Board of Investments (BoI) has approved the registration of a solar project by Nakashin Davao International, Inc., making it fthe first business to be awarded the incentives provided under the Energy EffEfficiency and Conservation (EE&C) Act.
In a statement on Wednesday, the BoI said Nakashin’s 519.2-kilowatt-hour rooftop solar photovoltaic project qualifies for an income tax holiday (ITH) equal to 50% of its capital investment.
Estimated at P26 million, this project will be installed in 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 confirmed that Nakashin’s project meets the required standards for approval by the BOI, and supports its compliance with the country’s sustainability goals,” BOI said.
Signed in 2019, the EE&C Act aims to promote the use of energy-efficient technologies to help achieve the Philippines’ renewable energy (RE) goals.
The government has set a target that RE will account for 35% of the electricity generation mix by 2030, increasing to 50% by 2040.
“By adopting RE technologies such as solar, companies in the Philippines can significantly reduce their electricity costs and reinvest in business expansion, boosting overall economic growth,” BoI said.
“Nakashin’s solar roof system will not only reduce its dependence on electricity but will provide reliable and sustainable power for its operations,” it added.
BoI Memorandum Circular 2023-006 provides that self-financed EE&C projects are entitled to ITH incentives and exemptions from importing goods, raw materials, spare parts, or metals. – Justine Irish D. Tabile