Islamabad: In a recent clarification, the ministry of energy-power division of the government dismissed rumours about imposing a fixed tax on solar power. The statement issued on Saturday directly rejected claims reported earlier.
Addressing the concerns raised by reports, which suggested a potential plan to impose tax on solar panel users, the Power Division clarified, "There is no truth in the news of imposing a fixed tax on solar power." It also confirmed that neither the Central Power Purchasing Agency (CPPA) nor the Power Division had proposed such a tax to the government.
سولر پاور پر فکسڈ ٹیکس لگانے کی خبروں میں کوئی صداقت نہیں. pic.twitter.com/xnNoVEq0aH
— Ministry of Energy-Power Division, Government of P (@MoWP15) April 27, 2024
The statement highlighted the government’s commitment to its 2017 Net Metering Policy, which encourages the integration of alternative energy sources like solar power into the national grid. The policy aims to alleviate energy costs for consumers while promoting sustainable energy practices. "There has been a phase where the solarization has increased very rapidly," the Division noted, said a Business Recorder report.
Despite the commitment to promoting solar energy, the Division pointed out that adjustments are necessary to ensure economic fairness. The rapid adoption of net metering, particularly among wealthier households, has led to financial imbalances. This shift has resulted in higher capacity charges, which the government struggles to redistribute fairly among consumers.
They added that the financial burden of these adjustments falls disproportionately on poorer consumers who get higher electricity bills. The Division restated that while solarization is not being discouraged, the current buy back rates of Rs12 to Rs22 per unit are financially unsustainable in the long term. This adjustment aims to address the overcapacity charges and make the energy sector more viable without sidelining the push towards renewable energy.
