Pakistan’s power sector has long suffered massive losses. known as circular debt, these losses have contributed to the country’s economic woes. The government has tried to address the problem in several ways but failed to contain it. The circular debt of the power sector has swollen to over Rs 2.5 trillion and its time that you should go solar in Pakistan.
There are several reasons why you should switch to solar power for your home in Pakistan. They include the reduction of air pollution, the reduced cost, and the environment’s impact. Another benefit is the added security and peace of mind that solar power can provide. Read on to learn more. You may be surprised to learn that solar power is a great option for your home.
Cost
Going solar is an excellent way to save money and reduce your carbon footprint. It also helps you to contribute to the national grid and reduce your dependence on fossil fuels. You can sell excess energy produced by your system to the power company for extra cash, making it a good investment in the long term.
Initially, the cost of going solar was expensive, but with government support, it has become more affordable. Nevertheless, it can still be a huge capital investment.
The total cost of a solar energy system includes the panel, permit fees, overhead, installation costs and labor charges. However, if you go for a quality solar panel and choose the best solar services in Pakistan, it can be a one-time investment that will pay off with a positive ROI.
Many people in the country have turned to solar power as a solution to their power crisis. This is because they are concerned about their environmental impact and the rising cost of electricity in Pakistan.
Although the price of going solar in Pakistan is high, it is a good investment that will help you to save on your monthly energy bill. In addition, you can use the electricity generated by your solar system during the day and sell it back to the power company at night.
In addition, a good solar service provider will make sure that your system is well maintain and has a long life. This will help you save on maintenance costs and keep your solar system running smoothly for years to come.
It estimated that the average cost of a solar panel in Pakistan is between 80 to 95 PKR per unit (watt). The average lifespan of a solar panel is 20-30 years, but this can vary based on your location.
Another cost issue is that you must have a reliable company to install your solar system. If you do not, the system could fail to operate properly and cost you a lot of money in the long run.
Despite the high cost of going solar, the potential for renewable sources to solve the energy crisis in Pakistan has never been greater. The country’s energy demand expected to increase 8-fold by 2030 and 20-fold by 2050, putting pressure on the power sector to find alternative sources of supply.
Environment
One of the reasons why it’s a good idea to go solar is that it has numerous benefits for both you and your environment. This includes saving you money, reducing your carbon impact, and improving your health. Moreover, it also improves your quality of life by lowering stress levels and giving you independence.
A lot of people have started to use solar power in their homes and businesses. This is because solar power is a renewable energy resource that doesn’t require fuel and isn’t harmful to the environment. It is also very easy to install and has a long lifespan.
Another benefit of going solar is that it can help raise the value of your home. This is because you will be able to avoid paying expensive electricity bills for a very long time (around 3.5 years).
In addition, your house will be able to generate extra power through your solar system and then sell it back to the grid through net metering. This service is available to all consumers and allows you to get credit for the electricity you produce.
Many of the early adopters in Pakistan have been homeowners and small business owners. This is because solar panels are a relatively inexpensive solution to the problem of electricity shortages in Pakistan.
The government is now promoting solar energy as a renewable resource through the Alternative Energy Development Board, which has created to encourage renewable energy projects and investment. This initiative has also helped to create jobs for local communities.
When more people switch to solar, it will make the electricity grid safer and less likely to experience blackouts. In turn, this will increase the security of the entire country.
If you’re not sure whether or not solar is a good option for you, check out the many benefits of going solar in Pakistan. You’ll be pleasantly surprised by how much it can save you in the long run!
Ultimately, the environment is the most important reason why you should go solar. This is because the world’s environment has suffered greatly from decades of overuse of fossil fuels.
Taxes
Circular debt is a cascade of unpaid bills, government subsidies and transmission line losses that are accumulating in Pakistan’s power sector. This has created a vicious cycle that’s costing the country billions of dollars in lost electricity, causing hours of load shedding and keeping the nation on the brink of financial disaster.
As Pakistan approaches the IMF’s resumption of its $6 billion loan program, policymakers are implementing a series of punishing fiscal measures. These include an escalating sales tax on solar panels and related technologies, according to the Alliance for Climate Justice and Clean Energy (ACJCE).
While some of these taxes are relatively minor compared to other countries, it’s important to note that they are a big deal in Pakistan, as they are preventing a transition to clean and renewable sources of power. In particular, the imposition of these taxes is a threat to small and mid-sized enterprises and off-grid and lower-income households because it will cause them to delay installing solar systems.
It’s also a concern for the entire industry, which will negatively impacted by the higher costs of these technologies. In fact, the Pakistan Solar Association, a trade body, signed a letter to the IMF calling for the suspension of this taxation regime.
The letter argued that the imposition of this tax would increase the cost of solar panels by about 30 percent, making it prohibitively expensive to install in rural areas and halting the country’s progress in its goal of adding 30 percent clean energy to the grid by 2022.
This could also have an adverse impact on the growth of the entire solar industry in the country, as it will make it more difficult for manufacturers to compete with foreign suppliers who are already offering competitive prices.
Similarly, in the gas sector, there’s also a problem with circular debt. Experts believe that there’s around Rs7 trillion worth of this debt, mainly due to unpaid gas distribution subsidy payments to SNGPL and SSGC from the state-owned Oil and Gas Development Company (OGDC) and PPL.
Circular debt is a big problem in the power sector and it’s affecting everyone, from consumers to distribution companies to power producers. This is why it’s essential to address it in the short term, while working on reforms to improve recovery rates.
Subsidies
Pakistan is a developing country, and the needs of its large population and industries require a lot of energy. But, due to its dependence on traditional fossil fuels, it is facing severe energy shortages.
The government has taken some measures to address these problems by introducing policies that encourage renewable energy and decrease the use of fossil fuels. One such initiative is the Solar Financing Pakistan scheme. The State Bank of Pakistan (SBP) offer this program to promote renewable energy and reduce the carbon footprint.
This scheme is a great way for homeowners and business owners to invest in solar systems. The amount of subsidy available is 30% of the benchmark cost. In this scheme, the eligible consumers can purchase the system from an empanelled vendor and pay the full amount of invoice in installments after deducting the subsidy. This method of financing the installation of solar systems is very beneficial as you can save on your electricity bill.
However, there are also some problems with this policy. For example, it does not cover commercial and industrial buildings like hotels or restaurants that use a lot of energy. This may make it difficult for businesses to implement this policy.
Another problem with this policy is that it can lead to higher electricity prices in the future. This is because the government will have to charge more for the excess electricity that these customers will generate.
In addition, it can lead to environmental degradation if the extra electricity is not use properly. This is because the plants produce so much heat that it can easily damage crops and soil.
These problems are important to address if the government is serious about going solar. The first step is to create a more effective institutional structure that can effectively implement energy policies.
A second imperative is to reform the energy sector’s tax system. This is a critical step to help Pakistan earn more revenue to help the poor and reduce the burden of energy subsidies.
The government of Pakistan is slowly implementing these policies and is starting to explore other alternative sources of energy. It plans to have a minimum of 5.0% of commercial energy supply come from wind, solar, and biowaste by 2030. This is a very ambitious goal, but it is encouraging that the government is taking some steps to increase its usage of renewables.
Provides a sense of security
Installing solar panels on your property can provide many benefits, ranging from financial savings to environmental benefits. Solar energy is also an investment in local jobs, which boosts the local economy. Over one quarter of the country’s solar jobs are employed by local solar companies. This is a significant benefit for you and your community.
Residential solar systems are designed to remain on your property for at least 20 years. Most leases and PPAs are for at least this amount of time, so it’s important to ask the company about transfer policies. You don’t want to be stuck in a situation where you can’t move on with the solar system. It’s also important to understand how the solar company will manage your property’s security.
Recommended readings:
- Business Community and Pakistan’s Power Crisis
- Which Manufacturers Produce the Best Solar Panels in Pakistan?
- NEPRA Pakistan
- Hybrid vs On-Grid Solar System Pakistan
