ISLAMABAD: Federal Minister for Power Division Awais Leghari clarified the government’s stance on imposing taxes on solar net metering. Speaking on a private news channel, Leghari assured that there are no current plans to tax solar net metering. “The government will not change its regulations regarding net metering for already installed solar systems,” he stated.
However, he acknowledged that the issue might be reconsidered in the coming years due to potential fiscal losses and an increase in circular debt associated with net metering.
Net metering is a billing mechanism that allows consumers to send excess energy generated by their solar panels to the local grid in exchange for credits on their monthly electric bills.
Lehari highlighted that capacity payments pose a significant challenge for the government. He mentioned that reforms have been planned to enhance the transmission system over the next four years. He encouraged the public to adopt solar power to alleviate the load on the power generation system.
Additionally, the minister noted that steps are being taken to improve customer service at distribution companies, curb power theft, and ensure strict action against pilferage. He emphasized a zero-tolerance policy towards service delivery issues.
Leghari also suggested the possibility of privatizing certain departments. He mentioned that long-term agreements for operational management contracts are in the pipeline, which would facilitate privatization following value addition.
