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Govt to Implement Tax on Solar Panel Users

The Central Power Purchasing Agency (CPPA-G) has recommended to the government that it impose heavy taxes on both homes and businesses that have installed solar power panels or systems. The CPPA-G has sent a report to the Ministry of Energy (Power Division) about this suggestion.

Govt to Implement Tax on Solar Panel Users
Govt to Implement Tax on Solar Panel Users

According to the details, the CPPA-G suggests a tax of Rs. 2,000 for every kilowatt of solar power used, whether it’s for homes or businesses. Furthermore, those with 12-kilowatt solar panel systems will need to pay Rs. 24,000 in taxes.

However, the solar panel tax will only be implemented after approval from the prime minister.

Previously, it was reported that the government is planning to reduce net metering buyback rates by Rs. 10 per unit. According to the details, the government says that the current rate of Rs. 21 per unit is not feasible since it shifts burden of capacity charges onto the poorer consumers.

If this is implemented, the new net metering buyback rates will be Rs. 11 per unit.

Read more: Govt to Reduce Net Metering Buyback Rates By Rs10 Per Unit.

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Ali Gulrez

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