Power Division denies plans to impose fixed tax on solar energy

The Power Division has refuted claims that the government plans to introduce a fixed tax on solar energy.

In a statement released on Saturday, the Power Division clarified, "There are no plans to impose a fixed tax on solar power."

Further details provided by the Division indicated that neither the Central Power Purchasing Agency (CPPA) nor the Power Division had proposed such a measure to the government.

The Division also reiterated its commitment to the 2017 Net Metering Policy, which is designed to foster the adoption of alternative energy sources. The statement highlighted a significant increase in solar energy adoption under this policy.

Additionally, the Division mentioned that it is contemplating certain proposals and amendments to protect economically vulnerable groups from additional financial strain.

The spotlight on solar energy has intensified following media reports that the government was considering adjusting the buyback rates for net metering electricity to Rs11 per unit from the existing Rs21. 

These reports have sparked considerable criticism, as stakeholders encourage the government to continue its support for renewable energy and lower electricity costs in the context of climate change.