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Power Minister Leghari confirms no tax on solar net metering

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Staff Reporter

2 years ago

ISLAMABAD: Federal Minister for Power Division Awais Leghari has ruled out any plans of the government to impose tax on solar net metering.

The minister denied that the government intended to charge solar net metering during an interview with a private news program.

“The government will not revoke its net metering regulations for solar systems that have already been installed,” he declared.

The minister did note that since solar net metering may result in budgetary losses and a rise in circular debt, the issue of taxing it might be taken up in the coming years.

With the use of a billing mechanism called net metering, customers can transmit excess solar energy to the local grid in return for credits toward their monthly electricity costs.

Leghari stated that the government had significant difficulties with capacity payments and that plans for modifications had been made to strengthen the transmission system during the next four years.

He urged the general public to resort to solar power to reduce the load on the system of power generation.

The minister said steps were being taken to improve customer care at distribution companies, check power theft, and ensure a crackdown against pilferage. He vowed to ensure zero tolerance against service delivery.

Leghari also referred to the potential privatization of government agencies, stating that long-term contracts for the award of operational management were being worked on. In this manner, value addition can be completed before privatization, he continued.

Staff Reporter