The Government Is Preparing To Levy A Substantial Tax On Users Of Solar Panels

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The Central Power Purchasing Agency (CPPA-G) has recommended to the government the imposition of a tax on residential and commercial consumers with solar panel installations. Sources indicate that CPPA-G has forwarded a proposal to the Ministry of Energy (Power Division) suggesting a tax of Rs. 2,000 per kilowatt for both residential and commercial solar panel users. For instance, users with 12-kilowatt panels would be liable to pay Rs. 24,000 in taxes. The Ministry has subsequently submitted the proposal to the prime minister for approval.

Additionally, sources have revealed that a summary aimed at rationalizing the buyback rates of net metering electricity is also being contemplated. Upon approval of the summary, an application will be submitted to the National Electric Power Regulatory Authority (NEPRA) to reduce the buyback rates of net metering electricity.

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