Government denies rumors that there is a set tax on installing solar electricity.

There is currently no set tax on solar electricity in the nation, according to the electricity Division. There have been rumors that the government has not received any summary addressing the imposition of tariffs on solar energy from the Power Division or the Central Power Purchasing Agency (CPPA).

The Net Metering Policy was implemented in 2017 with the intention of promoting investment in renewable energy sources including solar energy, according to an announcement. Particularly among the wealthy population, this strategy has resulted in a notable rise in the installation of solar panels, suggesting an increasing tendency towards the adoption of solar energy.

Additionally, the division stated that the government must provide subsidies to both household and industrial users, burdening the national budget with subsidies of Rs1.90. Up to 30 million low-income clients are reportedly affected by this, according to the Power Division.

There has been a noticeable increase in solarization as well, which has the Power Division concerned about the need to counteract this trend. To guarantee solarization’s sustainability and efficacy, it has underlined how crucial it is to keep a careful eye on the entire process.

It was further emphasized that in order to keep up with the rapidly increasing use of solar energy, the current solarization tariff may need to be modified, possibly involving changes to rates and regulations.

With these changes in mind, the Power Division stressed how critical it is to review current laws and policies in order to maintain and promote the expansion of solar energy. Emphasis has been placed on the close monitoring of the complete solarization system.

The Central Power Purchasing Agency suggested to the Ministry of Power imposing a tax on residential or commercial solar panel installers, and this news prompted the Power Division to notify them. The proposal purportedly suggested charging solar panel installers a levy of Rs2,000 per kilowatt.

A 12 kilowatt solar panel grid is expected to yield revenue of Rs 2,000 per kilowatt, according to the article. According to sources within the Ministry of Energy, those who install solar panels for residential or commercial use will be subject to this one-time fee.