Government Mulls Over Taxing Solar Panels: What It Means for Homeowners

government mulls over taxing solar panels what it means for homeowners

The government is thinking about charging a fixed monthly fee for solar panels installed on homes, even though it denies it for now. This idea might come back later, after people calm down about it.

Some officials in the government think solar panels can make money. The government is low on money, so they’re interested. Recently, a power ministry official said only rich people benefit from solar power, which isn’t true.

Before we talk more about this, let’s look back at how solar panels started in Pakistan. Not many homes had them before 2015. They used solar power during the day and switched to regular power at night.

In 2015, the government said it would buy extra electricity from these homes during the day. They introduced net metering, where extra power went to the grid. The government bought this solar power at a lower rate than regular power.

Then in 2018, the government said homes with solar panels should pay more for power during peak hours, making solar power less profitable.

In the last three years, power costs kept going up because companies couldn’t cover their expenses. High prices made people unhappy and made solar power seem better.

Recently, many homes installed solar panels, but they only produce a fraction of the power they can. The government buys some of this power but at a lower rate than before.

Some officials keep looking for faults in policies and suggest ways to make money from them. Solar energy is one example. Governments worldwide encourage people to use solar power.

In India, the real estate industry is embracing solar power, thanks to government support and tax benefits. Similar shifts are happening in other countries like Vietnam.

Some bureaucrats in Pakistan keep advising the government to make money from places where people can’t avoid paying. But why not focus on collecting taxes from those who evade them?

Imposing taxes on solar panels could lead to corruption. Homeowners might underreport their solar panel capacity to pay less tax. And the government might keep reducing benefits, making it harder for people to afford solar panels.

Opinion: It’s clear that taxing solar panels isn’t the best solution. Instead of burdening homeowners, the government should focus on fair taxation and tackling tax evasion. Encouraging clean energy initiatives like solar power benefits everyone in the long run.