Power Division clears the air on solar power tax

ISLAMABAD: The Power Division on Saturday refuted reports regarding the imposition of a fixed tax on solar power, terming them as baseless and misleading, ARY News reported.

In a statement, the Power Division clarified that no such summary has been sent to the government regarding the imposition of a fixed tax on solar power.

The Power Division stated that the subsidy of Rs 1.90 per unit is borne by the government, which is affecting around 2.5 to 3 crore poor consumers and is putting an undue burden on them.

If this continues, the poor consumers will have to bear an additional burden of at least Rs 3.35 per unit, the Power Division warned.

The Power Division said that the Net Metering Policy of 2017 aimed to promote alternative energy sources in the system. However, after 2017, the solarization has seen a rapid increase now.

Furthermore, the Power Division stated that they are studying the entire system and considering proposals and amendments to protect the poor from further burden. The division also assured that it will protect the investment of 1.5 to 2 lac net metering consumers.

The statement came after sources reported yesterday that the Central Power Purchasing Agency (CPPA) proposed the federal government to impose a tax on individuals using solar panels for residential or commercial purposes.

The sources privy to the development had reported that the CPPA proposed a tax of Rs 2,000 per kilowatt on residential and commercial consumers installing 12 kilowatts or more.

Read more: Govt proposed to impose tax on solar energy consumers

Reports also said that the CPPA’s recommendation, which was sent to the Ministry of Energy (Power Division) for approval, would be forwarded to Prime Minister Shehbaz Sharif for final approval.