The Power Division has refuted reports suggesting the imposition of a fixed tax on domestic and commercial solar panel installers. However, a statement issued by the Power Division on Saturday ended up confirming the report that the government was planning to cut net metering buyback tariff for commercial and residential consumers who have installed solar systems.

Reports on Friday claimed that the Central Power Purchasing Agency (CPPA) had proposed levying taxes on individuals and businesses installing solar panels, and a summary had been forwarded to the Ministry of Energy.

Citing ministry sources the reports said that homeowners or commercial entities installing solar panels could be charged Rs2,000 per kilowatt, while those with a 12-kilowatt system could face a charge of Rs24,000.

Many users install solar systems with 12 kWh capacity to reduce their electricity bills to zero.

However, a spokesperson for the Power Division issued a statement on Saturday refuting the reports about fixed tax on solar panel installation.

The spokesperson said that no such summary had been sent to the government, and there is no truth to the news of fixed taxes.

Nevertheless, the Power Division’s spokesperson said in the statement that due to the surge in the installation of solar panels by the wealthy, underprivileged consumers are being affected.

If this trend continues, there will be an increase of Rs3.35 per unit in electricity rates for low-income consumers, the statement said.

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The statement emphasized the need to revise the net metering tariff after a significant surge in solarization.

It is worth noting that Business Recorder reported two days ago that the government is considering a reduction in net metering rates for solar panel buyers. Currently, through net metering, solar panel owners are selling electricity to distribution companies at Rs21 per kWh. The government intends to reduce this rate to Rs10.

According to the statement, the authorities are “actively exploring proposals and measures” that can alleviate the burden on low-income households. These initiatives aim to safeguard the investments made by approximately 200,000 net metering consumers.

Sindh energy minister urges PM not to impose tax on solar panels

Sindh Energy Minister Nasir Shah has urged the government to refrain from imposing taxes on solar panels.

In a statement, he said that taxes on solar panels will burden the public with increased costs, considering the already high electricity prices in the country and the lack of accessibility in many areas.

He emphasised the importance of supporting individuals who are utilising solar panels.