Power Division Denies Proposed Tax on Solar Power in Pakistan

Pakistan's Power Division has firmly denied recent news reports suggesting a plan to impose a fixed tax on solar power generation. The official statement, issued on Saturday in Islamabad, aims to clarify the government's stance on solar energy.

Key Points:

·???????? No Fixed Tax on Solar: The Power Division categorically denies any plans for a fixed tax on solar power.

·???????? CPPA Not Involved: The Central Power Purchasing Agency (CPPA) has not submitted any proposal regarding such a tax to the government.

·???????? Concerns About Burden Sharing: The statement acknowledges the rising trend of solar panel installations, primarily by wealthier individuals. This creates a subsidy burden for domestic, industrial consumers, and the government itself, amounting to Rs. 1.90 per unit.

·???????? Potential Impact on Low-Income Consumers: The continued increase in solar installations could potentially lead to a significant rise (Rs. 3.35 per unit) in electricity bills for low-income consumers.

·???????? Net Metering Policy Review: The Power Division highlights the Net Metering Policy 2017, which aimed to promote alternative energy sources. However, the surge in solar installations necessitates a review of the policy.

·???????? New Rate and Consumer Protection: The statement indicates the development of a new policy with revised rates. Proposals and amendments are being considered to ensure the financial protection of low-income consumers from any additional burden. Additionally, the government assures protection for investments already made under the existing Net Metering Policy, benefiting an estimated 1.5 to 2 million net metering consumers.

Uncertainties and Potential Developments:

·???????? The exact nature of the revised policy and its impact on solar energy adoption remain unclear.

·???????? The Power Division's statement focuses on consumer protection, particularly for low-income households. However, details about specific measures to achieve this are not provided.

The Power Division's clarification addresses concerns about a potential tax on solar power. While a policy review is underway, the focus appears to be on finding a balance between promoting clean energy and protecting vulnerable consumers. Further announcements are expected to detail the revised policy and its implications for solar power users in Pakistan.

This article was published at Power Division Denies Plans for Fixed Tax on Solar Power in Pakistan