Government Proposes Tax on Solar Panels 12kW and Above

Government Proposes Tax on Solar Panels 12kW and Above

The government is considering putting taxes on larger solar panels, those with a capacity of 12 kilowatts or more. They’re also thinking about reducing the prices for people using net metering, a system where you can sell excess electricity back to the grid. Under the plan, those who install solar panels over 12 kilowatts could face an additional charge of Rs2000 per kilowatt, potentially adding up to Rs24,000 for these larger systems.

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The Central Power Purchasing Agency (CPPA-G) has proposed this idea to the Ministry of Energy (Power Division) for review. If approved, it will be presented to Prime Minister Shahbaz Sharif for final decision. Additionally, discussions are underway about adjusting the rates for net metering users, with potential reductions in electricity prices. Once approved by the Prime Minister, the government will request the National Electric Power Regulatory Authority (Nepra) to amend the electricity tariffs for net metering.

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