Islamabad, Pakistan : The Ministry of Water and Power has refuted recent reports claiming the imposition of a fixed tax per kilowatt on solar power users.
In an official statement, the Power Division clarified that “there is no truth in the news of imposition of fixed tax on solar power.” The statement further emphasized that neither the Central Power Purchasing Agency (CPPA) nor the Power Division has submitted any such proposal to the government.
The Ministry acknowledged the significant increase in solar panel installations, primarily by affluent households. However, this trend has resulted in a subsidy burden of PKR 1.90 per unit borne by the government and consumers. This, according to the statement, disproportionately affects millions of low-income consumers, potentially leading to a price hike of at least PKR 3.35 per unit for them.
The Ministry emphasized that the 2017 Net Metering Policy aimed to promote alternative energy sources. However, considering the rapid growth of solarization, the statement indicated the need for revised rates to ensure system sustainability.
The Power Division is currently evaluating proposals and amendments to safeguard the interests of both existing net metering customers (estimated at 1.5 to 2 lakh) and underprivileged consumers. Sources within the Ministry hinted at the introduction of overall metering for those transitioning to solar power.
The Ministry also acknowledged the financial burden placed on those without solar systems. Sources within the Ministry revealed plans to replace net metering with gross metering for domestic and commercial consumers using solar power.
