The Power Division has categorically dismissed rumors circulating on social media platforms claiming that the government intends to impose a fixed tax on solar power. Reports suggesting the introduction of such a tax, purportedly outlined in a proposal by the Central Power Purchasing Agency (CPPA), have been deemed “baseless” by the division.
According to the reports, the proposed tax would levy Rs2,000 per kilowatt on individuals and businesses installing solar panels for residential or commercial purposes. However, the Power Division has clarified that no such summary has been forwarded to the government for consideration.
While dispelling rumors of a fixed tax, the division hinted at potential revisions to the tariff structure for solar net metering. It expressed concern over the current system, which it believes disproportionately benefits affluent individuals and exacerbates the burden on domestic and industrial consumers as well as the government.
The statement from the Power Division comes amid a significant decline in solar panel prices, attributed to bulk imports from China, resulting in increased installation by wealthier individuals. Consequently, the division warns of adverse effects on subsidies and electricity bills for millions of consumers if this trend persists.
The “Net Metering Policy 2017,” aimed at promoting alternative energy sources, has witnessed substantial growth in solarization initiatives. However, the Power Division emphasizes the need for a comprehensive review of the policy to address emerging challenges and ensure equitable distribution of benefits.
In response to concerns over rising costs for consumers, particularly low-income households, the division asserts that proposals and amendments are under consideration to alleviate the financial burden. Efforts are underway to announce revised rates and implement measures aimed at protecting vulnerable consumers from further economic strain.