Power Division refutes reports of fixed tax on solar power

ISLAMABAD – The Power Division has rejected the reports claiming imposition of fixed tax on solar power.

In a statement, it stated there is no truth in the news of solar power fixed tax. The Central Power Purchasing Agency or Power Division has not sent any such summary to the government.

It said that affluent people are massively installing solar panel setup for electricity generation, adding that the government bears the subsidy of Rs1.90 per unit on solar power. It said that subsidy ultimately put burden on the millions of poor consumers.

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

The power division said the Net Metering Policy of 2017 was aimed at promoting alternative energy in the system. There has been a phase where the solarization has increased very rapidly.

The power division said various proposals are under consideration to save the poor consumers from additional burden. It also vowed to protect the investment of net metering consumers.

A day earlier, reports surfaced that CPPA has proposed the imposition of tax on those installing solar panel systems for residential or commercial purposes. 

Reports said it has asked the government to receive Rs2,000 per kilowatt tax the users of solar panels, a move that would discourage people shifting to solar for producing electricity. 

The tax would be imposed on the system with minimum capacity of 12 kilowatt. It means the government would receive Rs24,000 in taxes on a solar panel grid of 12kw. 

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