Pakistan, the country of over 240 million, saw a growing trend of solar energy amid soaring electricity costs, frequent power outages, and lowering in solar panel rates, but solar panel users are now facing massive taxation.
Sources familiar with development said Central Power Purchasing Agency (CPPA-G) proposed to the government the imposition of a tax on residential and commercial users with solar systems installed.
The power purchasing agency submitted a summary to the Ministry of Energy (Power Division) regarding this proposal. The suggested tax is Rs2,000 per kilowatt for both residential and commercial solar panel users.
The 12-kilowatt panels would pay Rs.24,000 in tax as reported by initial reports. The ministry has forwarded the summary to the prime minister for approval.
Solar Net Metering rates to be cut by Rs10 per unit?
The government is facing challenges with the rapid increase in solar net metering installations, which is impacting its ability to manage capacity charges.
Officials are planning to cut the rates paid to consumers generating solar power through net metering, a move that has drawn criticism. Currently, net metering users receive Rs21 per unit for excess electricity fed back into the grid, but the government aims to reduce this to Rs11 per unit, resulting in a loss of Rs10 per unit for solar power generators.
This decision is influenced by the financial burden of capacity charges paid to Independent Power Producers (IPPs), which are incurred regardless of actual electricity purchase. Despite concerns, the government argues that the current rate allows consumers to recover their solar panel installation costs within 18 months, while power companies are requesting an extension of this payback period to 10 years.
