The Ministry of Energy’s Power Division (MEPD) on Saturday rubbished reports circulating of an imposition of a fixed tax on solar power installations, according to state-run Radio Pakistan.

Rumours circulating on social media said that the Central Power Purchasing Agency urged the government to tax residential and commercial users of solar power with the suggestion of a Rs2,000 per kilowatt tax.

Radio Pakistan reported that a statement from the Power Division said there was “no truth” to the news of fixed tax for solar power users, adding that neither the Central Power Purchasing Agency nor the division had sent any such summary to the government.

The power division said the Net Metering Policy of 2017 was aimed at promoting alternative energy in the system but there was a phase where solarisation had increased very rapidly.

The division said such proposals and amendments were being considered to save the poor from further burden and affirmed the protection of the investment of 150,000 to 200,000 net metering consumers.