The federal government has put a hold on the proposed additional taxation for solar energy consumers and instructed a reassessment of the net metering framework, according to insiders.
Government sources disclosed that Prime Minister Shehbaz Sharif, along with several federal ministers, opposed the proposed tax on individuals generating electricity through solar panels.
The Ministry of Energy has now been tasked with reviewing the current net metering regulations and suggesting modifications that support clean energy adoption without imposing financial strain on users.
The initial proposal suggested that the government would purchase surplus solar energy from consumers at a rate of Rs10 per unit while introducing new tax provisions. However, the move was met with strong resistance from the public and industry experts, prompting authorities to reconsider.
Officials emphasized that this decision underscores the government’s commitment to fostering renewable energy adoption and ensuring solar power remains an affordable and viable option for households and businesses.
Further discussions regarding amendments to the net metering policy are anticipated in the coming weeks.
FAQs
- Why did the government halt the additional tax on solar users?
The decision was made after strong opposition from the Prime Minister, federal ministers, and industry stakeholders who believe taxation would discourage renewable energy adoption. - What was the proposed policy change regarding net metering?
The government planned to purchase excess electricity from solar users at Rs10 per unit while introducing new taxes, leading to public backlash. - Will the net metering policy be revised?
Yes, the government has directed a thorough review of the policy to make adjustments that do not burden clean energy users. - How does this decision impact solar energy users?
This move ensures that solar power remains a cost-effective option without the added financial pressure of new taxation. - When will the revised solar energy policy be finalized?
Further consultations and discussions on potential amendments are expected in the coming weeks.
