Government Incentives for Solar Energy Businesses in Zambia (2025 Official Guide)

As Zambia accelerates its transition toward clean and decentralized energy, the government has introduced a range of incentives for solar energy businesses to catalyze innovation, investment, and access — especially in off-grid and underserved regions.

If you’re an entrepreneur, investor, or NGO looking to break into the sector, understanding the government incentives for solar energy businesses in Zambia can help you reduce costs, access grants, attract partners, and scale your operations more effectively.

This guide offers a detailed look into tax reliefs, import duty exemptions, government grants, funding programs, and policy frameworks that are shaping Zambia’s solar future in 2025.

Why the Government Supports Solar Energy Businesses in Zambia

Before reviewing specific programs, it’s important to understand the national context driving these incentives:

• Rural electrification remains a top national priority. Over 60% of Zambians still lack access to grid electricity, especially in rural zones.

• Load shedding in urban areas has intensified. Solar provides reliable backup for businesses and homes.

• Solar energy aligns with Zambia’s 2030 Vision and Green Growth Strategy, promoting sustainable, low-carbon development.

• Donor agencies prefer partnering with private solar businesses for implementation.

This favorable environment makes Zambia one of the best countries in the region for launching a solar energy venture — especially when combined with government incentives for solar energy businesses in Zambia.

Key Government Incentives for Solar Energy Businesses in Zambia

Let’s explore the most relevant tax, regulatory, and financial benefits you can access.

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1. Import Duty Exemptions on Solar Equipment

To lower the cost of starting and expanding solar ventures, the Zambian government offers customs duty exemptions on imported solar equipment.

Eligible Items for Zero-Rated Duty and VAT Exemption:

• Solar panels (PV modules)

• Inverters

• Charge controllers

• Deep cycle batteries

• Solar lanterns and solar lamps

• Solar water pumps

• Solar-powered fridges and freezers

Legal Reference:

• Statutory Instrument No. 32 of 2019 and updates from the Zambia Revenue Authority (ZRA) confirm solar equipment is zero-rated for VAT and exempt from customs duty under certain HS codes.

Tip: Work with a licensed clearing agent to properly classify goods for exemption.

2. Capital Allowances and Investment Deductions

If your solar business operates as a registered company under ZRA and PACRA, you can claim capital allowances for solar-related machinery and infrastructure.

What This Means:

• Up to 100% deduction on capital expenditure for solar plants, installation equipment, and office assets.

• Wear and tear allowance on solar systems used in commercial farms, manufacturing, or hospitality.

Advantage: Reduces your income tax liability, improving profitability over time.

3. Access to CEEC Funding for Solar Enterprises

The Citizens Economic Empowerment Commission (CEEC) offers targeted loans and grants to Zambian-owned businesses, with a growing focus on renewable energy and green technologies.

Solar Business Categories Eligible for Support:

• Solar product distribution businesses

• Solar-powered irrigation services

• Solar kiosks and mini-grids in rural areas

• Local solar assembly and manufacturing firms

Funding Details:

• Loans from ZMW 10,000 to 500,000+

• Grace period: 6–12 months

• Interest rate: Often below commercial rates

• Priority given to women, youth, and rural entrepreneurs

Tip: Submit a solid business plan with a focus on community impact.

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4. Support from the Rural Electrification Authority (REA)

The REA spearheads Zambia’s push for rural electrification, mainly through mini-grids, solar pumping stations, and household kits.

How REA Supports Solar Energy Businesses:

• Co-funding of public-private partnership (PPP) mini-grid projects

• Technical assistance for feasibility studies

• Land or site access facilitation

• Stakeholder coordination in target villages

Best for: Solar entrepreneurs or investors targeting village-wide electrification or agricultural solar systems.

5. Public Procurement and Solar Tender Opportunities

Thanks to increasing decentralization, constituency development funds (CDFs) and municipal councils now allocate budgets for solar installations in:

• Rural clinics

• Schools

• Community centers

• Borehole electrification

What This Means for You:

• Registered solar companies can bid for government-funded projects.

• These projects often have local participation clauses, giving advantage to Zambian-owned firms.

• Prequalification often requires PACRA registration, ERB recognition, and ZRA compliance.

How to Access: Monitor Ministry of Energy, district council websites, and the Zambia Public Procurement Authority (ZPPA) portal.

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6. Tax Holidays in Economic Zones and Industrial Parks

If you’re setting up a solar assembly plant, solar product manufacturing unit, or a renewable energy service company, you may qualify for additional tax benefits.

In Approved Zones:

• Corporate tax holidays (5–10 years)

• Reduced VAT and withholding taxes

• Zero duty on raw materials and machinery

Applicable Areas: Multi-Facility Economic Zones (MFEZs) like Lusaka South, Chambishi, and others.

7. National Solar Strategy Partnerships and Pilot Programs

Under Zambia’s Renewable Energy Strategy, the government often partners with:

• Donors (e.g., GIZ, USAID Power Africa, EU, UNDP)

• Local companies for pilot implementation of solar innovations

• Private players for solar innovation grants and scaling solutions

These partnerships often include:

• Grants

• Technical support

• Co-financing options

• Marketing and distribution assistance

Who Can Benefit from These Solar Incentives in Zambia?

Documents You’ll Need to Access Government Solar Incentives

To successfully apply for most government incentives for solar energy businesses in Zambia, make sure you’re registered and compliant.

Checklist:

• PACRA business certificate

• TPIN from ZRA

• VAT registration (for importers/distributors)

• Tax clearance certificate

• Proof of physical location (lease or utility bill)

• ERB license (for large-scale installation or grid-tied projects)

• Bank statements or financial records (for loan applications)

Steps to Access Government Incentives for Solar Energy in Zambia

1. Register Your Business with PACRA and ZRA.

2. Apply for VAT and customs duty exemption classification.

3. Identify your preferred incentive — CEEC loan, REA co-funding, tax deduction.

4. Prepare a business plan or project proposal tailored to the program.

5. Engage with stakeholders — district offices, REA, CEEC, or ERB.

6. Submit your application or bid with complete documentation.

7. Follow up regularly and remain compliant with tax and reporting obligations.

Additional Resources for Solar Entrepreneurs in Zambia

• Zambia Revenue Authority (ZRA) – https://www.zra.org.zm

• Citizens Economic Empowerment Commission (CEEC) – http://www.ceec.org.zm

• Rural Electrification Authority (REA) – http://www.rea.org.zm

• Zambia Development Agency (ZDA) – https://www.zda.org.zm

• Ministry of Energy Zambia – https://www.moe.gov.zm

• Zambia Public Procurement Authority (ZPPA) – https://www.zppa.org.zm

Final Thoughts: Leverage Government Incentives to Power Your Solar Business

Zambia is not only sunny — it’s strategically positioned to become a leader in solar innovation. With generous government incentives for solar energy businesses in Zambia, entrepreneurs now have a unique chance to build powerful, high-impact businesses that deliver energy, employment, and economic uplift.

Don’t miss your opportunity to be part of Zambia’s solar-powered future. Whether you’re a small trader or a large-scale installer, these incentives are designed to remove your barriers and accelerate your growth.