ISLAMABAD – The reports about imposition of massive tax on solar power generation, and revised rates of net metering sparked concerns among the masses as use of solar panels to power homes is growing rapidly across Pakistan.
Federal Minister for Power Division Awais Leghari cleared air on government’s plan to tax solar net metering, saying that there are no such plans to impose taxes on solar net metering.
He assured that existing regulations for net metering will remain in place for already installed solar systems. However, minister hinted that taxation on net metering might be considered in the future due to potential fiscal losses and increased circular debt.
Net metering allows consumers to send excess energy from solar panels to the local grid, receiving credits on their monthly electric bills. Leghari further sheds light on challenge of capacity payments and outlined reforms to improve the transmission system over the next four years.
He encouraged people to adopt solar power to reduce the strain on the power generation system.
Furthermore, the minister highlighted the government’s efforts to enhance customer care at distribution companies, combat power theft, and ensure strict action against pilferage. He also suggested the possibility of privatizing certain departments, with plans for long-term agreements to improve operational management before privatization.
