Important update on solar tax, net metering policy

ISLAMABAD: Minister of State for Power Ali Pervaiz Malik on Wednesday clarified Pakistan government’s stance regarding imposing tax on solar system and revising net metering policy, ARY News reported.

In a statement, the minister categorically stated that the government has not imposed any ban on net metering.

He said that there are no plans to review net metering policy, and any changes to the policy will be made after consultation.

Malik added that the government is promoting alternative energy projects, including renewable energy schemes, to strengthen the economy and overcome challenges. He warned that those who engage in negative politics will be exposed.

He also clarified that no decision has been made regarding taxes on solar systems, and the government is moving forward with its partnership with the International Monetary Fund (IMF).

Speculations sparked after Energy Minister Awais Leghari said that the government of Pakistan will revise the net metering policy.

Addressing a press conference, Federal Minister for Energy Sardar Awais Ahmad Leghari pointed out that the country was facing an issue of solar net metering these days.

“Initially, citizens installing solar systems would recover their investment in three years, but now they are recovering their investment in just one to one and a half years,” he said.

The minister said that the PML-N-led government had encouraged solarisation in 2017 and currently, 113,000 connections were present on net meters.

Awais Leghari clarified that while the government is willing to review the solar net metering policy if needed, it supports the continuation of the scheme. “We will also take effective steps to eliminate the menace of power theft to reduce the financial burden on the national exchequer,” he added.