In a significant policy shift, the federal government has abandoned its plan to impose additional taxes on solar energy users and ordered a comprehensive review of the net metering framework, official sources revealed. The decision comes after widespread criticism from consumers and renewable energy advocates.
According to sources speaking to Express News, Prime Minister Shehbaz Sharif, alongside key federal ministers, firmly opposed the taxation proposal aimed at households and businesses generating electricity via solar panels. The original plan included purchasing solar-generated electricity at a rate of Rs10 per unit while introducing new tax clauses—measures that triggered outrage among users who have invested in clean energy solutions.
In response, the government has instructed the energy minister to overhaul the net metering policy, ensuring that any revisions prioritize affordability and do not penalize those adopting renewable energy. The move underscores a broader commitment to fostering sustainable energy practices and easing the financial burden on solar adopters, who have increasingly turned to solar power amid rising electricity costs and environmental concerns.
Industry stakeholders had warned that the proposed taxes would discourage investment in solar infrastructure, undermining Pakistan’s renewable energy goals. Consumers, many of whom rely on net metering to offset high utility bills, also voiced frustration, arguing that the policy would erode the economic benefits of their solar setups.
Officials emphasized that the government aims to strike a balance between supporting clean energy adoption and maintaining a stable energy market. A revised net metering plan is now in the works, with further details expected following consultations in the coming weeks. The decision has been hailed as a victory for solar users and a step toward making renewable energy more accessible across the country.
