Egypt’s Investment Law makes renewable energy projects eligible for tax cuts up to 30% of the total investment and includes a 2% flat fee on all imported capex items. The Renewable Energy Law was issued to promote the production of electricity from renewable resources and the Electricity Law liberalizes the electricity sector and opens new horizons for the participation of the private sector.
A net metering scheme has been introduced to allow small-scale renewable energy projects in residential, industrial and commercial sectors to feed electricity into the low-voltage grid. To encourage households to be part of this scheme, any household can connect a system that produces more electricity than they consume. This has led to a significant growth in the volume of electricity produced from renewable resources.