Latest news with #PakistanSolarAssociation
Business Recorder
11 hours ago
- Business
- Business Recorder
Taxing solar panels to backfire as Pakistan needs time to bolster manufacturing: Experts
Energy experts believe that the imposition of General Sales Tax (GST) on the import of solar panels, regardless of the final tax rate decided by the federal government, will not slow down Pakistan's accelerating transition to renewable energy. Moreover, contrary to the government's assumption that the imposition of GST would promote domestic industry, experts argue that the move would backfire as the local industry remains underdeveloped and is presently unable to meet the market demand. The remarks were made by clean energy experts, industrialists, climate activists, and renewable energy traders during a webinar titled 'Taxing the Sun: Will Solar Still Shine in Pakistan?', jointly organised by Energy Update and Pakistan Solar Association (PSA). During the webinar, participants examined the federal government's recent budgetary proposal to impose GST on solar panels. The government in its federal budget proposed to impose an 18% GST on solar panels imported. This sparked considerable debate; however, after consultations, the government decided to lower the rate to 10%. Waqas Moosa, PSA Chairman, highlighted that the decade from 2020 to 2030 has been globally recognised as a pivotal era for transitioning to clean energy. He indicated that Pakistani consumers would persist in embracing solar energy to power their homes and businesses, regardless of the added cost from GST. Moosa, however, cautioned that Pakistan's local industry is not yet sufficiently developed to meet the growing demand for advanced solar panels in adequate quantity. 'As such, relying solely on local production at this stage could risk stalling progress.' Moosa strongly criticised the proposal to tax imported solar panels, calling it a serious setback to Pakistan's efforts in combating the climate crisis. 'Whether or not a tax is implemented', he said, 'Domestic consumers will continue shifting to solar energy due to persistent power shortages and unaffordable electricity tariffs from the national grid.' Muhammad Zakar Ali, CEO of Inverex Solar Energy, also echoed similar sentiments. He said that the vast majority of electricity users in Pakistan will continue to transition away from grid-supplied electricity, regardless of tax implications. Ali argued that Pakistan needs a minimum of 18-24 months to establish a viable local industry capable of producing clean energy equipment at scale. Imposing a tax prematurely could deter both domestic and international investors, he warned. He further noted that high electricity tariffs for industrial users could discourage investment in solar panel manufacturing plants. Ali, however, remained optimistic that prospective Chinese investors would soon launch joint ventures with Pakistani industrialists to set up such facilities. The Inverex CEO explained that establishing local solar panel manufacturing plants could lead to the development of five supporting vendor industries, significantly boosting the clean energy supply chain in Pakistan. Pakistan's solar surge lifts it into rarefied 25% club Dr Khalid Waleed, Research Associate at the Sustainable Development Policy Institute (SDPI), believed that the surge in rooftop solar installations in urban centres presents an opportunity for Pakistan to earn carbon credits on the global climate finance market. During the webinar, Tanveer Barry, Former Vice President Karachi Chamber of Commerce and Industry (KCCI), pointed out that while Pakistan's installed electricity generation capacity exceeds 45,000 megawatts (MW), only around 27,000 MW are currently deliverable to end-users due to outdated and overburdened transmission infrastructure. Barry also highlighted the immense untapped potential for solar energy adoption among off-grid rural households and agricultural communities across the country.
Business Recorder
12-06-2025
- Business
- Business Recorder
PSA opposes 18pc GST on imported solar panels
LAHORE: The Pakistan Solar Association (PSA) has voiced strong opposition to the proposed imposition of 18% General Sales Tax (GST) on imported solar panels, as outlined in the Federal Budget 2025–2026. In a formal representation submitted to the Ministry of Power, the PSA cautioned that the move could significantly derail Pakistan's progress in renewable energy adoption at a critical juncture. According to the PSA, the imposition of this tax risks reversing the positive momentum built over the past several years, which has enabled widespread access to clean, affordable energy and contributed to national energy security. The association argues that the GST will increase the upfront cost of solar installations, making the technology less affordable for households and small businesses already grappling with high electricity prices. PSA Chairman Waqas Moosa emphasised, 'At a time when the world is accelerating toward clean and renewable energy, this tax may inadvertently discourage solar adoption and undermine our collective climate and energy goals.' The association challenged the rationale that the tax would protect local manufacturing, stating that Pakistan currently lacks a large-scale or high-efficiency solar panel manufacturing base. Local units mostly produce low-wattage panels that do not compete with imported technologies, making the protectionist impact of the tax marginal at best. In its letter, the PSA proposed alternative solutions such as phased incentives for local solar assembly, R\&D support, and GST exemptions for residential and small-scale solar buyers to strike a balance between industrial policy and clean energy access. The Association urged the government to reconsider the proposed GST, warning that higher costs could make solar less competitive than fossil fuels — which are not only environmentally harmful but also strain Pakistan's foreign exchange reserves. The PSA reaffirmed its commitment to collaborate with policymakers on sustainable, forward-thinking strategies to achieve energy independence and ensure long-term energy security for Pakistan. Copyright Business Recorder, 2025
Business Recorder
29-05-2025
- Business
- Business Recorder
Jinko Solar launches Tiger Neo X20 Panel
LAHORE: Jinko Solar, one of the leading solar brands has launched its latest innovation — the Tiger Neo X20 panel — at a ceremony held at a local hotel. In his opening remarks, Faraz Muhammad Khan, Business Development & Sales Manager, emphasized Jinko Solar's global leadership with a presence in over 200 countries and over 350 GW of modules shipped worldwide. 'Jinko has held the #1 global ranking for six consecutive years, and in Pakistan, it remains the most trusted solar brand,' he noted. Shehan Talagala (Sales Director) and Faizan Hashmi (Key Account Head North) introduced the Tiger Neo X20, powered by HOT 3.0 N-type TOPCon technology. The guest speaker Waqas Mossa, Chairman of the Pakistan Solar Association, praised Jinko's continued support for Pakistan's energy goals. 'This launch shows Jinko's dedication to bringing world-class solar solutions and driving the country toward a sustainable, energy-secure future,' he said. Copyright Business Recorder, 2025
Express Tribune
18-03-2025
- Business
- Express Tribune
Net metering changes threaten solar industry
Listen to article Chairman of the Pakistan Solar Association (PSA), Waqas Moosa, has warned that proposed changes to net metering regulations will significantly impact the dynamics of the solar industry, particularly the residential and Small and Medium sized Enterprises (SMEs) sectors. The proposed regulations aim to extend the payback period for on-grid photovoltaic (PV) systems to around three years, compared to the current 1.5 years. In contrast, hybrid (solar + battery) systems with lithium-ion batteries already offer a payback period of under three years, with ongoing technological improvements expected to shorten this further. "We anticipate a surge in demand for solar + battery solutions in the coming months," Moosa said. However, he criticised the decision as detrimental to the country's power sector in the long run. The significant gap between the export rate of Rs10 and the Rs50-60 savings per unit from self-consumption will drive more consumers toward battery storage. "As customers realise the benefits of self-storage, many will extend their off-grid hours, reducing demand for DISCOs. This will lead to higher electricity prices for remaining consumers, disproportionately impacting lower-income householdsthe very group these policy changes claim to support," he explained. Moosa also condemned the lack of consultation with industry stakeholders, stating that abrupt policy changes could destabilise the market. "Equipment supply chains cannot be adjusted overnight. Traders with on-grid inventory will face losses, while prices for hybrid systems and batteries may spike," he said.
Express Tribune
18-03-2025
- Business
- Express Tribune
Solar panel prices fall after new government policy changes
Refuting rumours of new taxes on solar power, Minister for Power Awais Leghari stated that the government has no such plans in the near future. photo: file Listen to article Pakistan's solar industry is facing uncertainty following recent amendments to the net metering policy, with solar panel prices seeing a decline. As a result of these changes, consumers now find solar energy options more affordable, with prices dropping by Rs35,000 to Rs175,000. A 5 kW solar system now costs between Rs500,000 and Rs550,000, while larger systems like a 10 kW unit are priced above Rs800,000. The price reduction follows the government's decision to lower the buyback rate for solar net metering to Rs10 per unit and implement net billing for new consumers. The move aims to control rising grid electricity costs but has sparked criticism from industry leaders who argue it could negatively impact consumers and the solar sector. Meanwhile, the Pakistan Solar Association (PSA) has expressed concerns over the new regulations, particularly their impact on residential and small-to-medium enterprises (SMEs). PSA Chairman Waqas Moosa noted that the amendments will increase the payback period for on-grid solar systems from 1.5 years to around three years, making off-grid, hybrid solar systems more appealing. These hybrid systems, which often incorporate advanced lithium-ion batteries, offer shorter payback periods, potentially shifting demand away from grid-connected systems. The PSA has called on the government to engage more with industry stakeholders before finalising such policy changes, warning that the new approach could reduce grid demand and drive up electricity prices for remaining consumers.
