If you have solar panels on your roof—or were planning to install them—this week has been terrifying. The government’s announcement of a new solar tax – 18% Sales Tax on Solar Panels (up from the subsidized rate) and the rumors of a shift to “Gross Metering” have created mass panic.
Are they killing the industry? Will your bill go back up? I have dug through the FBR’s new Finance Bill (Jan 2026 Draft) to answer the 5 most common questions flooding my inbox.
1. “I already installed my system in 2024. Do I have to pay the new tax?”
The Short Answer: No. The “How-To”: Breathe easy. The 18% General Sales Tax (GST) is on imports and new sales, not on existing ownership. Retrospective taxation on hardware is illegal. However, keep your original purchase invoice safe. You might need it if the distribution companies (DISCOs) start auditing “undeclared” systems later this year.
2. “How do I calculate the extra cost if I buy now?”
The Short Answer: Prices are going up by approx. PKR 8-10 per watt. The “How-To”: If you were quoted PKR 35/watt in December 2025, expect that quote to jump to PKR 42-45/watt starting next week.
- Action Item: If you have a quotation from a vendor dated before Jan 1st, fight for it. Many vendors have old stock they purchased before the tax hike. Do not pay the new price on old inventory.
3. “Is Net Metering actually dead?” (The Gross Metering Rumor)
The Short Answer: Not yet, but it’s on life support. The Explanation: The IMF has pushed for “Gross Metering” (where you sell cheap and buy expensive). The government hasn’t implemented it fully yet, but they have introduced a “Grid Support Fee” of PKR 2.5/unit for Net Metering users.
- Action Item: Check your latest “Green Bill.” If you see a new line item for “Fixed Charges” or “Grid Fee,” that is the soft start of this policy.
4. “Should I go Hybrid (Batteries) to avoid the grid entirely?”
The Short Answer: YES. The “How-To”: This is the only way to “future-proof” yourself. With the buy-back rates dropping (now barely PKR 11/unit vs the PKR 60/unit you pay), exporting to the grid is becoming pointless.
- Strategy: Stop trying to oversell to the grid. Invest in Lithium Iron Phosphate (LFP) batteries. Use your own power at night (Peak Hours) instead of selling it cheap during the day. The goal in 2026 is Self-Consumption, not “selling for profit.”
5. “How do I avoid the ‘Non-Filer’ Solar Penalty?”
The Short Answer: Become a filer immediately. The “How-To”: The new Jan 2026 ordinance has a nasty clause: Any solar connection >10kW registered to a Non-Filer will face a 30% Advance Income Tax on the total system value during registration.
- Action Item: If you are installing a big system (10kW+), ensure the meter is in the name of an Active Taxpayer (ATL). If your dad is the homeowner but not a filer, transfer the meter to a filer family member before applying for Net Metering.
Conclusion The golden era of “free electricity” is over. The government wants its cut. But with smart battery management and filer status, Solar is still 10x cheaper than Wapda.
Are you rushing to buy batteries? Or are you sticking to the grid? Let me know in the comments.