Power Division Contemplates Tax on Solar Users

The Power Division in Pakistan is considering imposing a tax on customers who transition to solar power, sparking controversy. Initially, a proposal suggested a tax of Rs2,000 per kVA of solar power generation capacity, potentially costing households up to Rs400,000 annually. However, the Power Division denied this and instead is contemplating reducing the buyback rate for solar power from Rs21 to Rs11 per unit. This move aims to address the drop in grid power demand due to solar adoption, affecting non-solar users. Critics argue that penalizing solar users, who invest in clean energy independently, is unfair and counterproductive.

The government's stance has drawn criticism for targeting consumers embracing sustainable energy solutions. By framing the issue as a conflict between 'wealthy' solar users and 'poor' non-solar users, officials are accused of deflecting blame for the power sector's inefficiencies onto conscientious consumers. Moreover, the government's reluctance to acknowledge the benefits of solar power investments, such as rapid cost recovery, raises concerns about its commitment to green energy initiatives. The ongoing debate underscores the need for a balanced approach that incentivizes renewable energy adoption without penalizing proactive consumers.