Although much has been speculated about an end to net metering or a tax on solar panels in recent weeks, the budget for the year 2024-25 made a different announcement regarding the industry.

Finance Minister Muhammad Aurangzeb announced that the government was hoping to end reliance on imported solar panels to save precious foreign exchange.

Instead, Aurangzeb added, the government will provide subsidies on the parts use to manufacture solar panels.

The subsidies will apply to plants, machinery, tools, panels, inverters and batteries, the minister announced.

He added that that the aim of the measure of was to fulfill local requirements as well as export solar panels.

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Solar panels allow consumers in Pakistan to avoid costly electricity bills and even sell electricity to the grid through net metering.