€10m in energy grants for business

Albert Bezzina

Feb 5th 2009, 21:05

Budget 2009. Excise tax on fuel raised by €0.035 on Petrol and €0.020 on Diesel to finance alternative energy incentives. Estimated revenue from this extra excise tax on fuel = €6.3million annually. Over 18months = €9.45million = Alternative energy incentive to industry. It seems that motorists are again a cash cow and are being made to subsidize industry so that they have fewer energy expenses. Industry can deduct 35% of expenses from their income. So Motorists pay 50% of the Alternative energy installation, the company pays the other 50% but gets back 17.5% as a a tax rebate so the tax payer is actually forking out this 17.5%. The Company's installation will pay for itself in less than 5 years, than its free solar energy on the back of tax payers and motorists. This 67.5% of the price of the installation is going into the pockets of the Alternative energy installation importers. This is nothing but easy money from sitting duck motorists and tax payers going strait to the PV importers.

A. Farrugia

Feb 5th 2009, 12:24

This is a good initiative. The important thing now is to ensure that the scheme is given enough publicity and that the awarding of grants is transparent and fair.

May I humbly suggest that a number of seminars be held for interested applicants giving more information about the scheme, whilst also promoting energy efficiency and green initiatives.

Also, will there be a maximum allowable grant? Such a maximum would ensure that the grant is spread across a large number of companies, rather than have a few applicants with large projects benefitting at the cost of other applicants. Such a move would also spread the risks of having beneficiaries of such grants closing down shortly after spending the money.

Finally, this move would at least ease of the tensions associated with the higher utility tariffs for the 'lucky' (deserving hopefully) few that will benefit from the scheme.