Power Division Denies Fixed Tax on Solar Panels, Confirms Net Metering Tariff Reduction Plans

Contrary to earlier reports, the Power Division has refuted claims of imposing a fixed tax on domestic and commercial solar panel installations in Pakistan. However, a statement issued by the division confirmed the government’s intention to reduce the net metering buyback tariff for users with solar systems.

Earlier reports suggested that the Central Power Purchasing Agency (CPPA) had proposed taxes on solar panel installers, triggering concerns among users. According to these reports, homeowners and businesses installing solar panels could face charges of up to Rs2,000 per kilowatt.

Read: Government considers reducing solar net metering rates by Rs10 per unit

Addressing these reports, a spokesperson for the Power Division clarified on Saturday that no such proposal had been forwarded to the government, dismissing claims of fixed taxes on solar installations.

However, the spokesperson acknowledged the surge in solar panel installations by affluent consumers, leading to concerns for underprivileged consumers. The statement highlighted that if this trend continues, electricity rates for low-income consumers could increase by Rs3.35 per unit.