No plans for taxation on solar net metering: Awais Leghari

Awais Leghari, the Federal Minister for Power Division, has unequivocally dismissed any intentions of the government to levy taxes on solar net metering. Addressing a private news channel, Leghari reaffirmed the government’s commitment to retaining existing regulations pertaining to net metering for already installed solar systems.

“The government stands firm on maintaining the current regulations concerning net metering for solar systems,” Leghari stated emphatically.

However, Leghari did acknowledge the possibility of considering taxation on solar net metering in the coming years, citing concerns over potential fiscal losses and an increase in circular debt associated with the practice.

Net metering, a billing mechanism allowing consumers to offset their electricity bills by exporting excess solar energy to the grid, was underscored as a vital tool in renewable energy adoption.

Highlighting the challenges posed by capacity payments, Leghari outlined forthcoming reforms aimed at enhancing the transmission infrastructure over the next four years.

Encouraging the public to embrace solar power, Leghari stressed its role in alleviating strain on the power generation system.

Moreover, he outlined initiatives to enhance customer service, combat power theft, and ensure stringent enforcement against energy pilferage, emphasizing a zero-tolerance approach towards service quality lapses.

Additionally, Leghari hinted at potential privatization measures, revealing plans for long-term operational management contracts as a precursor to privatization efforts aimed at value addition.