Power Division Denies Plans for Fixed Tax on Solar Power in Pakistan

Pakistan’s Power Division has firmly denied recent news reports suggesting a fixed tax on solar power generation. The official statement, issued on Saturday, clarifies that neither the Central Power Purchasing Agency (CPPA) nor the Power Division has proposed such a tax.

Concerns Regarding Rising Solar Adoption:

The statement acknowledges the significant increase in solar panel installations, particularly among affluent individuals. This trend, while positive for clean energy adoption, has raised concerns about the financial burden on other consumers.

Impact on Non-Solar Users:

The Power Division highlights the current subsidy of Rs. 1.90 per unit borne by domestic, industrial consumers, and the government due to the rise in solar power usage. This subsidy primarily benefits those who have installed solar panels.

Potential Increase in Electricity Bills:

The statement warns that if the current trend continues, electricity bills for non-solar users, especially low-income consumers, could surge by at least Rs. 3.35 per unit. This could create a financial strain on a significant portion of the population.

Focus on Protecting Consumers and Investments:

The Power Division emphasizes that while a new rate structure is being considered, the government prioritizes protecting existing investments in solar power. This includes safeguarding investments made by an estimated 1.5 to 2 million net metering consumers.


The news clarifies the government’s stance on solar power taxation. While a fixed tax proposal has been rejected, a potential review of the existing policy and rate structure is underway. The government aims to balance promoting clean energy with ensuring affordability for all electricity consumers.

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