Government Proposes Tax on Solar Panel Installations

The federal government is contemplating the imposition of a tax on the installation of solar panels with a capacity of 12KW and above. Additionally, there is a proposal to reduce the tariff for net metering. The plan involves taxing individuals or businesses installing 12KW or higher solar panels at a rate of Rs2000 per kilowatt, resulting in a total charge of Rs24,000 for a 12KW panel. The Central Power Purchasing Agency (CPPA-G) has submitted this proposal to the Ministry of Energy (Power Division) for further consideration. The Power Division intends to seek approval from Prime Minister Shahbaz Sharif before proceeding. Furthermore, a potential reduction in the electricity tariff for net metering consumers is also under review. Once approved by the Prime Minister, the government plans to submit a petition to the National Electric Power Regulatory Authority (Nepra) to implement the revised tariff.

The government's proposal to tax solar panel installations and revise net metering tariffs aims to regulate the use of solar energy and promote sustainable energy practices. By incentivizing more efficient use of solar power, the government seeks to balance the benefits of renewable energy with the need for revenue generation.

The potential tax on solar panels and the revision of net metering tariffs reflect the government's commitment to enhancing the energy sector's sustainability and efficiency. These measures, once implemented, are expected to impact consumers and businesses utilizing solar energy, influencing their decisions regarding solar panel installations and energy consumption.