Good News: No New Tax on Solar Panels in Pakistan

Good news for those already using Solar Panels in Pakistan. And those planning to install them for domestic or commercial usage as an alternate energy or credit-generating resource. The Pakistani government has recently asserted that no new taxes or duties will be imposed on Solar Panels in Pakistan. 

Solar Panels in Pakistan

Tax on Solar Panels in Pakistan

The country’s not-so-old solar industry needs federal support to scale up. Thanks to the government’s focus on this futuristic industry, the initiative of solar tax concessions on raw material imports for panels, inverters, and batteries, will promote the manufacturing of Solar Panels in Pakistan and will encourage more installations. 

How Many Solar Plants Are in Pakistan?

The journey of Solar Power in Pakistan began in 2013. Though a comparatively slow rate of progress, the country today contains seven solar projects that generate 530 megawatts of energy. Pakistan has an abundance of natural resources. Our dear sun gives us nine and a half hours of light daily. Therefore, to take full advantage of sunlight the government has proposed to install a new 1200MW solar power plant in Layyah, as proposed in the recent Budget 2024. Read more about Budget Pakistan 2024

Solar Panel Price in Pakistan

One of the reasons for the slow rate of installations of Solar Panels in Pakistan was the high cost. Over time, the solar panel price in Pakistan has decreased. And today, it ranges from Rs. 17,000 to Rs. 29,000 per plate depending on the watts it offers. The latest data reveals that 0.3% of electricity consumers have rooftop solar panels. Yet the percentage has to be increased with initiatives for more Pakistanis to use solar energy instead of conventional fossil fuel resources.

CM Punjab Solar Panel Scheme

To transit towards green energy resources, the Punjab govt has initiated a program to provide 50,000 free solar panels to low-consumption houses in Punjab. This will help meet the energy needs and pave the way towards a sustainable future in Pakistan. With a budget of Rs. 12 billion, the program will target houses of up to 100 units per month of power consumption. A wonderful example of natural resources can be utilized to fulfill national needs.

What is Solar Net Metering? 

Solar Panels in Pakistan

Solar Net Metering is a billing process that allows solar panel holders or solar energy providers to receive credit money if they add extra solar energy to the national grid. Understanding the need and scope of renewable resources, the Pakistan Muslim League Nawaz (PMLN) government initiated solar net metering in 2017. 

From a cold and reluctant public response in the beginning to 117,000 solar net metering connections, solar net metering in Pakistan is slowly becoming popular. Because it allows consumers to sell extra electricity to their power distribution company and earn money. 

Why the World Needs Green Energy?

Solar Panels in Pakistan

The world needs green energy to sustain longer and to have an improved quality of life.  In many parts of the globe, people are transitioning towards renewable resources and one such recent example is the initiative by Pop Francis to generate solar energy for the entire Vatican City State with the vision to decrease carbon emissions and contribute to climate neutrality. 

Pakistan is one of the most affected countries by climate change. Therefore, opting for renewable resources is the need of the hour. Also, Pakistan has a favorable weather pattern, and long hours of sunlight can help generate solar energy, which can help meet the national need for electricity. 

Pakistan’s Solar Energy Vision 2030

Every citizen should have access to low-cost renewable energy. That’s the mission statement of the Pakistani government. It has set a target to generate 60% of its energy from renewable resources by 2030. However, it is important to facilitate manufacturing of Solar Panels in Pakistan to meet the target.

World’s Largest Manufacturer of Solar Panels

China, to no surprise, is the world’s largest manufacturer of solar panels. Out of the seven largest manufacturers, six are Chinese. This solar power giant also has the world’s largest solar power park, Golmud Solar Park, with more than seven million solar panels and a combined capacity of 2.8 GW. While 80% of the world’s solar panels are imported from China, other countries need to increase the pace to win the race for solar power. 

Pakistan’s renewable energy sector is growing gradually, yet domestic production of solar panels and installing more power plants on an extensive level is the need of the nation. Also, replacing net metering with a gross metering mechanism might discourage local consumers, and can be challenging for the industry. 

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2 thoughts on “Good News: No New Tax on Solar Panels in Pakistan”

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