An analytical paper by the Algerian Green Energy Coalition concerning the 2026 Finance Bill on renewable energies reveals that the government continues its active efforts to stop the significant waste of gas in the domestic market, alongside practical steps to support energy transition and reduce carbon emissions. This is done through the inclusion of four key articles in the bill aimed at encouraging investment in clean energy, green hydrogen, and promoting local manufacturing of solar energy components.

The document, issued by the Algerian Green Energy Coalition on October 11, 2025, indicates that the initial reading of the new finance bill shows a clear direction from public authorities to consolidate the country’s energy transition through well-studied legal provisions that will have a direct impact on the national energy market and local industry.

According to the document, the bill focuses on four pivotal articles: 99, 126, 127, and 128, to strengthen various branches of clean energy. Articles 127 and 128 relate to the industrial aspect, with the first providing a full exemption from customs duties on imports of electrolyzers, essential equipment for hydrogen production, while the second reduces customs duties on raw materials used in solar panel manufacturing to only 5%.

The same source notes that articles 99 and 126 focus on encouraging investment and domestic consumption of clean energy by adopting a tax credit system of up to 5% of declared profits and reducing customs duties on solar water heaters by 50%, from 30% to 15%.

The coalition considers these measures the fruit of the work of the Renewable Energy Secretariat, which, despite its short existence from November 2024 to September 2025, succeeded in proposing practical, realistic measures away from contentious issues within the energy sector, enabling their inclusion in the finance bill without notable opposition.

The analysis also points out that Algeria is this time using the finance bill as a tool to overcome the stagnation that accompanied some previous executive texts, such as the 2020 executive decree related to supporting electronic industries, which has not yet been implemented, prompting authorities to choose the legislative path to ensure the new measures come into effect.

The Algerian Green Energy Coalition confirmed that these financial amendments represent a real turning point towards a low-carbon economy, combining environmental and economic goals, contributing to the activation of national manufacturing of energy products, and paving the way to reduce energy costs for companies and enhance their competitiveness, especially with the introduction of the tax credit mechanism encouraging investment in research, development, and clean equipment in exchange for tangible financial incentives.

Detailing the articles, Article 99 allows companies to deduct expenses related to green hydrogen, reforestation, and renewable energy projects from their taxable profits, up to a maximum of 5%.

According to the explanatory memorandum, this measure aligns with the state’s vision to accelerate the energy transition and diversify the economy, with active participation from Sonatrach Group, which launched reforestation programs and environmental initiatives such as the “My Green Space” campaign to instill environmental culture among citizens.

The coalition notes that reforestation is a strategic pillar in combating desertification and drought and is part of national efforts to increase rainfall and improve the local ecosystem.

Article 126, according to the same analytical document, addresses the reduction of customs duties on solar water heaters to only 15%, instead of the current 30%.

The coalition confirms that this decision did not come out of nowhere but in the context of the alarming increase in natural gas waste in the domestic market, especially with rising household consumption of subsidized energy, causing the state to lose considerable quantities of gas that could have been directed for export or investment in energy transition projects.

The paper highlights that the government aims through this measure to shift household consumption behavior towards clean and sustainable alternatives. The program aims, according to the analysis, to generalize the use of solar energy in Algerian homes, with authorities aspiring to equip more than 100,000 homes with solar heaters by 2035, which will reduce natural gas consumption by about 135 million cubic meters, equivalent to five billion Algerian dinars during the same period, according to international gas price estimates.

The coalition believes that the tariff reduction will lead to a significant drop in device prices, thereby promoting their widespread adoption among families, easing pressure on the gas distribution network, and contributing to energy security.

Regarding Article 127, it established a full exemption from customs duties on electrolyzers dedicated to hydrogen production, a step described by the coalition as pivotal in implementing the national green and blue hydrogen strategy 2030-2035.

The paper explains that the cost of these devices represents a large part of hydrogen production costs, and the exemption will help reduce prices and make Algeria more competitive in this rapidly growing global sector.

Article 128 focuses on supporting local manufacturing of solar panels by reducing customs duties to 5% on all imported components and raw materials, from silicon and tempered glass to aluminum, copper, and electrical junction boxes.

The coalition’s analytical paper confirms that the goal of this measure is to build a national industrial fabric capable of meeting domestic demand and supporting major renewable energy projects, in addition to reducing dependency on imports and lowering the cost per locally produced kilowatt.

In conclusion, the Algerian Green Energy Coalition states that the 2026 finance bill is the strongest since independence in its practical support for clean energy, combining tax incentives, industrial encouragement, and openness to international investments, fully aligned with Algeria’s international commitments to reduce emissions and promote sustainable development.

The report concludes that Algeria will enter a new phase of its national energy transition path under these measures, characterized by local manufacturing, economic diversification, rationalizing energy consumption in the domestic market, and positioning itself as a reliable player in the global renewable and green energy market.