June 26, 2024

Solar Panel Duty Exemption in Pakistan

Solar Panel in Pakistan received new push since The Prime Minister Shehbaz Sharif has announced the exemption of duty on solar panels in Pakistan. This step will help provide cheap electricity and make green energy more affordable for all citizens.

Economic Stability and Renewable Energy Focus


The prime minister Shehbaz Sharif celebrated his government's commitment towards getting the national economy on a ‘positive trajectory’, saying that he was satisfied with measures his administration had undertaken so far towards achieving economic stability, emphasizing the use and efficiency of renewable energy as the way for that.

A few days later, the Prime Minister repeated his government’s commitment to increase exports, especially those by Small and Medium Enterprises (SMEs), and to withdraw privileges for the elite to make the economy more equal.

Last month, Pakistan’s Federal Board of Revenue issued a clarification to its proposed changes to the import duty exemption on solar panels, following days of ambiguous reporting on an apparent switch towards ‘gross metering’ of solar energy, accompanied by fresh taxes on solar products.

That these changes mean solar power is no longer a profitable enterprise to generate in-house is a risk to the viability of investment in solar energy. The government’s guarantee that it will not impose additional taxes on solar panels is an attempt to alleviate this risk.

Solar Pakistan


Solar energy in Pakistan is becoming one of the key parts of Pakistan’s energy plan. Pakistan gets the sun shines almost all the year round. So, they should take advantage of it to generate solar power.

The government sees this potential and is encouraging the uptake of solar energy to overcome energy shortages, increase energy security, reduce reliance on fossil fuels and help cater to everyday energy usage for people across the country.

The solar panel duty exemption recently announced by Prime Minister Shehbaz Sharif highlights the state’s intentions to make solar energy accessible to every citizen.

This policy is critical for keeping low-cost energy technologies affordable and makes it easier to democratize access to renewable energy technologies across the country. Meanwhile, facilitation of regulations and incentives for solar investment is being carried out, including promotion of Small and Medium Enterprises (SMEs) in renewable energy.

Pakistan's Current Solar Power Initiatives


Today Pakistan is working on its own slew of high-profile solar projects to grow its renewables capacity and turn away from old, traditional fossil fuels. The Quaid-e-Azam Solar Park outside Bahawalpur in the Punjab has an initial capacity of 1000 MW and is one of the largest solar power proposals in the area. It has already grown through several phases and is now expanding.

Another prominent one is the Sukkur Solar Power Project in Sindh province, which will add 50 MW to the national grid. These are just two examples of regional efforts to decentralize solar power production and boost energy access in low‑regarding areas.

Meanwhile, the private sector is taking off. Companies such as Reon Energy and Zorlu Energy Pakistan are building several large solar projects across the country, both directly with the government and through the private sector, further promoting the fledgling renewables market in Pakistan and spurring employment and economic activity.

As for the policy aspect, net metering regulations work hand in hand with other incentives, which is another government policy, such as directing certain factions of the finance industry to invest in specific renewal energy projects.

with the government offering incentives to encourage people to purchase solar panels both in residential and commercial sectors, it is expected that the penetration of solar energy into our infrastructure will increase, leading to an energy transition that is both sustainable and conducive to national energy security.

Pakistan’s present solar schemes comprehensively symbolize the ambition of taking good advantage of abundant solar resources and turning it to a brighter clean and clean energy future of Pakistan.

These projects will be evolving as the time passes to mitigate the environmental concerns that are tentatively a byproduct of conventional energy sources and meet the increasing energy demands.


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