CPPA proposes tax on residential, commercial solar panels

ISLAMABAD: The Central Power Purchasing Agency (CPPA) has recommended the imposition of a tax on individuals installing residential or commercial solar panels, sources from the Ministry of Energy disclosed.

According to the sources, the CPPA has submitted a summary to the Power Division outlining the proposal. The suggested tax amounts to Rs2,000 per kilowatt for both residential and commercial installations.

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For a typical 12-kilowatt solar panel setup, this would translate to a charge of Rs24,000. The summary has been forwarded to the Prime Minister’s Office by the Power Division for final approval, Geo News reported.

Additionally, the Power Division is contemplating a review of solar panel rates across the country. If approved, the revised rates will be presented to the National Electric Power Regulatory Authority (NEPRA) for implementation.

In Pakistan, the installation of solar panels has surged in popularity, primarily driven by a desire to mitigate the burden of electricity bills.

With rising utility costs, many citizens are turning to solar energy as a reliable and cost-effective alternative. The abundant sunlight in the region makes solar power a viable solution, offering households and businesses a means to generate their own electricity and reduce dependence on the national grid.

People across Pakistan are investing in solar infrastructure, not only to save on electricity expenses but also to contribute to a greener and more resilient future.