Regulatory Framework for Solar Thermal Power: Law 20,365

Country	Chile
Year Implemented	2009 (amended 2010)
Policy Status	In force
Date Effective	2009
Date Ended	2013
Agency	•National Energy Commission
Policy Type	•Financial   •Taxes and Tax Incentives     •Tax Exemption     •Tax Reduction •Regulatory Instruments   •Standards
Policy Target	•Solar Thermal   •Water Heating
Policy Sector	•Heating and Cooling (Domestic / Industrial Process)
Description	Voted in November 2009, the Regulatory Framework for Solar Thermal provides solar water heater (SWH) constructors with a tax rebate programme, valid until 2013.The law also establishes a technical standard and certification systems. Construction companies and housing developers incorporating solar systems producing at least 30% of a household's annual hot water demand are eligible for tax credits. They can also apply for a total or partial deduction, from the provisional payments included in their Income Tax, of the cost of the solar heater system (device and installation). Tax deductions are progressive according to the value of the household property (construction and terrain), with low-income projects receiving the highest exemption rates. Properties of a value below Unitades de Fomento (UF), the inflation-adjusted accounting currency, 2, 000 benefit from a tax deduction of the total amount of the SWH device, properties of a value ranging from UF 2, 000 and 3, 000 benefit from an deduction worth 40% of the system's cost while properties that worth UF 4, 500 and above are guaranteed a 20% deduction. Since August 2010, construction firms can claim for 100% deduction of the solar home system device installation cost on homes worth up to UF 4, 500, USD 176, 000 equivalent.
URL	www.tech4cdm.net/userfiles/Sesion1_sol_chi_situacion_solar_termica_RM_CNE.pdf