Pakistan

Power Division rebuts taxing solar consumers

CPPA-G urges solar tax for residential and commercial users, Rs2,000 per kilowatt

News Desk April 28, 2024

The cabinet considered the summary titled ‘Amendment in Framework Guidelines for Fast Track Solar PV Initiatives 2022’ dated October 2, 2023, submitted by the Ministry of Power, and approved the proposal, directing a comprehensive analysis of the overall solar policy, including initiatives like the solarisation of tube-wells, to be presented to the cabinet. photo: REUTERS

The Ministry of Energy’s Power Division (MEPD) on Saturday rubbished reports circulating of an imposition of a fixed tax on solar power installations, according to Radio Pakistan.

Rumours circulating on the social media said that the Central Power Purchasing Agency urged the government to tax residential and commercial users of solar power with the suggestion of a Rs2,000 per kilowatt tax.

Radio Pakistan reported that a statement from the Power Division said there was “no truth” to the news of fixed tax for solar power users, adding that neither the Central Power Purchasing Agency nor the division had sent any such summary to the government.

The power division said the Net Metering Policy of 2017 was aimed at promoting alternative energy in the system but there was a phase where solarisation had increased very rapidly.

The division said such proposals and amendments were being considered to save the poor from further burden and affirmed the protection of the investment of 150,000 to 200,000 net metering consumers.

COMMENTS (1)

Tj Farooqi | 6 months ago | Reply It s paramount to recognize the pivotal role of solar power in Pakistan s energy transition. Net metering particularly with solar panels not only empowers consumers but also contributes significantly to reducing our carbon footprint and enhancing energy security. However the proposed reduction in solar power tariffs presents a concerning setback that could hinder our progress towards a sustainable future. It s crucial for policymakers to prioritize maintaining incentives for solar energy adoption and engage with stakeholders to ensure decisions align with our global commitments and long-term sustainability goals. Let s stand united in advocating for a vibrant solar energy sector that benefits both Pakistan and the planet.

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