Algeria's Draft Finance Law 2026: Key Incentives for Renewable Energy Development

Strategic Insights -

Algeria's move to reduce customs duties on solar panel components and exempt electrolyzers for hydrogen production is seen as a significant boost to the country's renewable energy sector. The draft finance law for 2026 includes several measures to support the growth of solar energy, including a reduced customs duty rate of 5% on imports of solar panel components and an exemption for electrolyzers required for hydrogen production. This move is expected to stimulate Algeria's renewable energy market and support the country's ambitious targets, including equipping over 100,000 households with solar water heaters by 2035.

Key Takeaways:

  • The draft finance law for 2026 includes a reduced customs duty rate of 5% on imports of solar panel components, including unassembled cells, junction boxes, aluminum frames, and solar glass.
  • Electrolyzers intended for hydrogen production are exempt from customs duties under Article 127 of the draft law.
  • The draft law also stipulates that imports of solar water heaters for domestic use are subject to a reduced customs duty rate of 15%, compared to the current 30%.
  • Article 99 states that expenses incurred by companies in connection with investments related to the development of green hydrogen or for the production and use of renewable energies are deductible from taxable income, up to 5% of the taxable profit for the financial year in question.
  • Algeria's solar panel production capacity is growing rapidly, with the country's main manufacturers eyeing a move to TOPCon panels.
  • Think tank Green Energy Cluster Algeria sees the draft law as a significant step towards stimulating Algeria's renewable energy market.

Statistics:

  • 5%: Reduced customs duty rate on imports of solar panel components.
  • 15%: Reduced customs duty rate on imports of solar water heaters for domestic use.
  • 30%: Current customs duty rate on solar water heaters.
  • 5%: Maximum rate of deductible expenses in connection with investments related to the development of green hydrogen or for the production and use of renewable energies.
  • 100,000: Number of households to be equipped with solar water heaters by 2035.

Sources:

  • Green Energy Cluster Algeria
  • pv magazine France
  • Algeria's draft finance law for 2026