Mexico's Federal Finance and Administrative Court announced last week that it would cancel 15% import tariff on solar PV modules.
The tariff was introduced by the Mexican Tax Administration (SAT) in 2015. The court accepted the appeal of the Mexican Solar Energy Association (AsOMMEX) in October 2016 that the tax was illegal because SAT claimed that the solar module itself is generating electricity. Machines, not components in the power system.
The cancellation of this tariff, together with the expected decline in the prices of solar modules, is very likely to drive Mexico’s development in the next two years. It may even lead to the reconstruction of solar projects that were selected in the last three years of power auction but were abandoned. .
AsOMMEX Director-General, IsraelHurtado, confirmed that some 'unprofitable' projects may now become attractive again. 'As the price of components decreases, many projects can be restructured and refinanced', he said that the cost of the panel accounted for a large 50% of the total cost of a solar project, and a price reduction of more than 30% can save the entire project by 15%.
In addition, Hurtado believes that 2018 will be a record year for the photovoltaic industry, and that Mexico's new installed capacity may reach 1 GW. The association’s forecast for the next six years is 6.6 GW, but Hurtado said that it will not rule out the increase. The possibility of this prediction.
