The Uruguayan government sent a bill to congress proposing a package of tax incentives to encourage production of solar panels in the South American nation.
The legislation calls for rebating value added tax on purchases of both domestic and imported goods and services for the production of solar panels.
The initiative also would scrap import duties on goods destined for the production of solar panels as long as they do not compete with products made in the country.
Roughly 230 MW in solar energy capacity is set to be installed in Uruguay in the coming years, the government said in a policy brief accompanying the legislation.
In 2013-2014, for the first time in two decades, Uruguay was able to supply its energy needs without resorting to imports.
Thanks to $7 billion public investment, Uruguay now gets 50 percent of its energy from renewable sources, according to Ramon Mendez, chairman of the National Climate Change Response System.
Date: March 11, 2016