Will tax be imposed on electricity sold by solar panel users to govt?

Bad News For Solar Consumers As Fto Orders 18pc Sales Tax On Net Metering

ISLAMABAD – The federal government has clarified that no any tax will be imposed on electricity exported by the solar panel users to the national grid.

Talking to a private news channel, Energy Minister Awais Khan Leghari said the users however are liable to pay standard 18% tax on electricity consumed from the grid.

He also shared that Prime Minister Shehbaz Sharif is going to announce a major cut in electricity prices ahead of summers. He added that the government has saved Rs1,4000 billion through renegotiated contracts with independent power producers (IPPs).

Leghari also rejected the speculation that the price of electricity exported by the solar panel users to be reduced to Rs8.8 per unit after imposition of tax.

He clarified that the solar buyback rate has been fixed at Rs10 per unit.

Earlier this month, the Economic Coordination Committee (ECC) has lowered the purchase price of electricity under net metering.

Solar consumers will now be paid Rs 10 per unit instead of Rs 27, but this applies only to new solar panel installations.

According to the Finance Ministry, the decision aligns with current market conditions.

ECC stated that new solar users will receive electricity from the national grid at off-peak rates.

They noted that solar power has impacted efforts to reduce grid electricity prices, with 80% of solar users belonging to nine major cities.

A briefing to the ECC revealed that by December 2024, solar users shifted a burden of Rs 159 billion onto grid consumers — a figure projected to rise to Rs 4,240 billion by December 2034.

The number of solar consumers reached 283,000 in December 2024, up from 226,440 in October, while solar power generation increased to 4,321 MW in December 2024 from 321 MW in 2021.

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