Massive Taxes Expected for Solar Panel Users in Pakistan, Details inside

ISLAMABAD – In a new development, the government of Pakistan is expected to reduce solar net metering buyback rates massively in the country.

According to sources, this change is being considered because the use of solar power energy in Pakistan has massively risen.

According to the Power Division, this facility has greatly benefited the consumers and due to this the power industry is starting to decline in the country.

Due to this the poor individuals and consumers are under a great financial burden from the sector as more and more people who can afford net metering are moving towards it.

Sources suggest that the government is thinking that the current buy back rates are not optimal even though they support solar power generation.

Statistics show that around 6000 MW of solar panels are imported in Pakistan as of March 31, 2024, rising the power production to 3000W

The government is now looking to slash net metering buy-back rates so the power industry in the nation does not collapse.

Net Metering Buy Back Rates to be Slashed by Rs10 per Unit?

According to sources, the government is expected to reduce the rates paid to consumers generating solar power through net metering.

As of yet, net metering users get Rs21 per unit for excess electricity supplied back to the govt grid.

However, the government is expected to lower this rate by Rs10 per unit, resulting in a reduction of Rs11 per unit for buyback.

This decision is as a consequence of the extreme financial stress due to the capacity charges paid to the Independent Power Producers (IPPs).

The problem is that these charges are paid regardless of actual electricity procurement which is not good for the government.

The government states that these charges allow the user to profit enough that their initial investment on solar net-metering is bought back within 18 months.