Government Considering Taxation on Solar Panels Exceeding 12kW

ISLAMABAD –  The federal government is taking into consideration a proposal to impose taxes on the installation of solar panels measuring 12 KW or more, it was reliably learned here yesterday.

According to an official source, the administration is also thinking about lowering the rate for net metering. The source claims that there is a plan to charge people who install 12 kW residential or commercial solar panels.

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It is intended to tax residential or business solar users of 12 KW or more solar panels with an amount equal to Rs. 2000 per kilowatt. According to the source customers installing 12KW solar panels will be charged Rs 24,000.

The Central Power Purchasing Agency (CPPA-G) has submitted a proposal in this respect to the Ministry of Energy (Power Division) the source said.

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It stated that the Power Division delivered the CPPA plan to Prime Minister Shahbaz Sharif for approval. According to the source, there is also a plan being considered to lower the rate for customers who use net metering.

The source claims that after the prime minister gives his assent, the government would apply to the National Electric Power Regulatory Authority (Nepra) for a reduction in the net metering electricity bill.

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