Import tariffs for solar systems in Cambodia have been reduced to 0%.

According to the latest announcement issued by the Ministry of Commerce of Cambodia, the Cambodian government has announced significant adjustments to the customs import and export taxes for a number of goods, with a particular focus on areas such as electrical equipment, solar systems, and new energy vehicles.

For plug-in hybrid (PHEV) family cars, the government has reduced the import tariffs for 92 tax categories from 35% to 7%. Additionally, for 12 tax categories including electric ovens, toasters, and pure electric (EV) family cars, the import tariffs have been directly reduced from 35% to zero. Regarding export taxes, the export tax rate for bauxite has been lowered from 25% to 10%. The new tariffs and export tax rates will come into effect from April 1st this year.

The import tariffs for solar energy systems have been reduced from 35% to 0%, which will directly lower the landed costs of core equipment such as photovoltaic modules and inverters. The installation prices for end users are expected to decrease by 25–30%, which will significantly stimulate the willingness of households and enterprises to install solar energy systems.

Moreover, the electricity price in Cambodia is relatively high (about 0.16–0.20 USD/kWh for industrial and commercial electricity), and the cost of photovoltaic electricity has dropped to 0.05–0.08 USD/kWh. After the tariffs are zeroed out, the investment payback period will be shortened to 3–5 years. It is expected that major electricity consumers such as garment factories, food processing plants, and electronic assembly plants will accelerate the deployment of “self-generation and self-consumption” distributed projects.

Due to the war in Iran, international oil prices have fluctuated sharply, causing significant inflationary pressure on the economy and people’s lives in Cambodia. This tariff reduction for solar equipment and new energy vehicles is not only helpful in addressing the global energy crisis, but also aims to encourage the public and enterprises to make a shift.

This tariff adjustment marks an important turning point for the solar energy industry in Cambodia. In the short term, it will trigger the rooftop photovoltaic market, and in the long term, it is expected to reshape the country’s energy structure and move towards a cleaner and more resilient direction. If you need grid-connected energy storage systems and off-grid energy storage systems, please choose the products of Beijing Multifit Electrical Technology Co., Ltd.