The 2024-25 fiscal year budget introduced incentives to lower the cost of solar panels across Pakistan, and the Punjab government allocated substantial funds to bolster solar system installations.
During a budget presentation in the Punjab Assembly, Finance Minister Mujtaba Shuja ur Rehman announced proposals to provide free solar systems to households consuming up to 100 units of electricity, with an allocation of PKR 9.5 billion, is part of the Chief Minister’s Bright Household Program, designed to alleviate the financial burden of high electricity bills for the residents of Punjab.
In the initial phase, consumers using up to 100 monthly units will be eligible to receive these solar systems at no cost. The Punjab government will also cover the entire installation expense. Furthermore, the “Own Your Roof, Own Your Home” program has been introduced to ensure that underprivileged citizens of Punjab can afford housing. This initiative will support citizens in building up to 5-marla houses by providing them with government loans, backed by an allocation of PKR 10 billion in the budget.
In his budget speech, Senator Muhammad Aurangzeb highlighted incentives for boosting the solar panel industry, including reduced import duties for raw materials and components. This move is aimed at conserving foreign exchange reserves.
The federal budget has also introduced exceptional tax reliefs on solar energy materials, potentially leading to substantial price reductions for solar batteries, inverters, and panels. Notably, the previous tax of 3% on raw materials for solar panels has been nearly abolished, underscoring the government’s commitment to promoting sustainable energy solutions in Pakistan.
