No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsCosta Rica's Sun Tax Hinders Solar Energy Adoption

Costa Rica’s Sun Tax Hinders Solar Energy Adoption

Despite the challenges Costa Rica has been facing regarding energy production, the government has resisted lowering tariffs on alternative energy sources, such as solar panels. On August 23rd, the Board of Directors of the Public Services Regulatory Authority (ARESEP) received a new tariff methodology proposal to charge those who produce their own electricity through solar panels.

ARESEP confirmed that a high tax remains in place for those wishing to enter this market. The private sector calls it the “sun tax,” which refers to charging those who install these panels because they remain connected to the national grid. Technically, it is called an “access tariff.”

The new methodology changes the way the tariff is calculated; it will no longer be based on total consumption but on the amount of electricity produced by the panels.

ARESEP argues that it is complying with Law 10.086, which has been in force since December 2021 and was intended to promote the deployment of this technology in Costa Rica. They further argue that eliminating the access tariff would effectively subsidize those installing solar panels, as they would still have the ability to draw from the national grid without paying for that access.

With the entry into force of the new law in 2021, ARESEP claims to have complied with the mandate to create a methodology that avoids subsidizing these customers.

Prior to Law 10.086, the access tariff was calculated based on any surplus. With the approval of this law, the tariff was calculated based on so-called “natural consumption,” i.e., what was produced and what was consumed from the conventional grid; however, this was suspended. The new proposal involves calculating the access tariff based on what is produced by the panels.

The connection charge can range from ¢16 to ¢30 per kilowatt hour (kWh), depending on each distributor. The installation of solar panels is usually the most common way to produce clean energy on this scale. However, few new contracts have been signed in Costa Rica since 2021, when the new law came into effect.

Earlier this year, members of the energy sector indicated that this approach was not the way forward and that the country was regressing in this area. “What we are doing is discouraging growth among those with solar panels, and we are moving backwards,” commented Laura Gutiérrez, a representative of the sector.

Earlier this year, the Costa Rican Electricity Institute (ICE) announced power outages due to extremely dry weather and a lack of proper planning by the institution. They also noted that the country is demanding more energy, and it’s complex to meet this demand.

Citizens have criticized ARESEP’s stance, believing its methodologies discourage those who want to install solar panels.

Solar energy is an ideal alternative for Costa Rica, a country blessed with year-round sunshine and a reputation for green energy. However, authorities must act swiftly to balance the needs of the people with the urgent demands of the planet, encouraging rather than discouraging the adoption of clean energy.

Trending Now

Costa Rica’s 2025 Flamingo Fishing Rodeo Highlights Sport and Conservation

With great fishing and a renewed focus on family fun, the Presidential Flamingo Fishing Rodeo presented by Marina Flamingo is set to take center stage in the world...

Canada’s Latest Costa Rica Travel Advisory Update

The Canadian government rolled out a fresh travel advisory for Costa Rica, urging travelers to stay sharp due to rising crime and natural risks....

Costa Rica Law Now Requires Corporations to Register an Email for Legal Notices

Costa Rica has recently approved a very important law which establishes a new obligation for commercial corporations, and that obligation is that they must...

Panama Police Clash with Protesters Over Pension Reform Near Costa Rica Border

Police and protesters clashed in Panama on Saturday during an operation to clear a highway near the Costa Rican border, where teachers and Indigenous...

From Bookie to “Pura Vida”: A True Costa Rica Expat Story

I recently wrote about my fear that three decades after learning Spanish, I was now slowly losing my fluency, forgetting words I had once...

Costa Rica’s UN Ocean Conference Role Slammed as Hypocritical

Costa Rica’s high-profile role in the 2025 United Nations Ocean Conference (UNOC3) in Nice, France, has triggered fierce criticism from lawmakers and environmentalists, who...
spot_img
Costa Rica Tours
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica