LAHORE: Renewable energy stakeholders have applauded the federal budget’s concessions on the import and local manufacturing of solar panels, urging the government to promptly release detailed information on these incentives.
“Perhaps the government has recognized that renewable energy sources like solar and wind are the only sustainable solutions to mitigate the high costs associated with traditional energy sources like thermal and coal,” stated Mustafa Amjad, Programme Director of the Renewable First, an Islamabad-based energy think tank.
In an interview with Dawn, Mr. Amjad commended the government for offering incentives to local solar panel manufacturers. “Allowing the tax-free import of raw materials for solar energy equipment is a commendable move. This decision will not only save foreign exchange but also create hundreds of jobs,” he said.
He highlighted that the “massive tax relief” extends beyond raw materials for solar panels to include the manufacture of inverters, lithium batteries, solar cells, and solar batteries.
“Although hydropower is a cheap energy source, it requires substantial investment and a lengthy completion time of 10 to 20 years. Solar power, on the other hand, is currently the cheapest energy source,” Mr. Amjad explained. He added that battery prices are expected to decrease soon, making solar panel installations more affordable. “Chinese companies are already working on producing affordable batteries for export to Pakistan, which will further lower local battery prices,” he noted.
Syed Muhammad Talha Akmal, an executive at a Chinese company, also spoke to Dawn. He acknowledged the government’s concessions but emphasized the need for clarity. “We must wait to see if the benefits are passed on to consumers. Currently, imported panels from China are cheaper than locally manufactured ones. It’s crucial to issue SROs that specify the tax concessions for both import and local manufacturing,” he explained.
Mr. Akmal believes these concessions will enable more people to install off-grid solar power systems, excluding storage batteries, and benefit from cheaper energy. “With a fully-fledged off-grid system that includes batteries, individuals can completely eliminate their reliance on expensive power from Discos,” he added.
Story by Khalid Hasnain
