Govt Reject Summary of Tax on Solar Users

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Govt Reject Summary of Tax on Solar Users

The Power Division has announced that currently, there is no fixed tax on solar power in the country. Neither the Central Power Purchasing Agency (CPPA) nor the Power Division has forwarded any summary to the government regarding imposing taxes on solar energy.

Encouragement for Solar Power Scheme

  • The Net Metering Policy, introduced in 2017, aims to encourage investment in alternative energy sources like solar power.
  • This policy has led to a significant increase in the installation of solar panels, especially among the affluent community, showing a growing trend toward solar energy Scheme adoption.

Concerns and Subsidies

  • The government is providing subsidies to domestic and industrial consumers, causing a burden of Rs1.90 billion on the national treasury.
  • This subsidy is affecting 25 to 30 million poor consumers adversely.

Surge in Solarization

  • The Power Division has noticed a surge in solarization, raising concerns about the need to balance this trend.
  • It emphasized the importance of closely monitoring the entire solarization process to ensure sustainability and effectiveness.

Also Read: 2000 Per KW Tax on Solar Panel Users by Govt

Need for Policy Adjustments

  • The current solarization tariff may need adjustments, including amendments to rates and regulations, to accommodate the rapid growth in solar energy adoption.

Reevaluation of Policies

  • In light of these developments, the Power Division stresses the importance of reevaluating existing policies and regulations to support and sustain the growth of solar energy.
  • The entire solar system is being closely monitored to ensure its effectiveness.

Tax Proposal Rejection

  • The Power Division’s notification comes after media reports suggested that the Central Power Purchasing Agency proposed to the Ministry of Power the imposition of tax on domestic or commercial solar panel installers.
  • It was allegedly proposed to collect a tax of Rs2,000 per kilowatt from solar panel installers.


The rejection of the tax proposal is good news for those looking to adopt solar power. It is essential to continue supporting the growth of solar energy through favorable policies and regulations.

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