Govt Denies Reports on Fixed Tax for Solar Panel Users

The power division has denied rumors suggesting that the government was planning to impose a fixed tax on solar panel users. Reports circulating on social media claimed that a proposal had been made to introduce such a tax, but the power division clarified that no such proposal had been submitted to the government.

In a statement, the power division emphasized that the Net Metering Policy of 2017 aimed to encourage alternative energy sources and protect the investments of net metering consumers. It highlighted that the government subsidizes Rs1.9 per unit of electricity to support alternative energy, which benefits millions of consumers.

However, the division expressed concerns about the impact of the subsidy on electricity tariffs for low-income consumers. If the subsidy continues, the power tariff for the poor could increase by Rs3.35 per unit. Despite recent reports of a surge in solar panel imports from China, the power division dismissed claims that a fixed tax on solar panel installations was being considered.

Reports had suggested that the Central Power Procurement Agency (CPPA) recommended imposing a tax of Rs. 2,000 per kilowatt on residential and commercial solar panel users. Additionally, a tax of Rs. 24,000 would allegedly be charged to customers installing solar panels with a capacity of 12 kilowatts or higher.

However, the power division clarified that these reports were baseless and reaffirmed the government’s commitment to promoting alternative energy sources.

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