Latest Scheme Overview

• Chief Minister Maryam Nawaz Sharif launched the CM Punjab Free Solar Panel Scheme in March 2025 via a digital lottery. Approximately 94,483 solar systems will be installed in the first phase for households using up to 200 units/month.
• Consumers using 0–100 units receive 0.55 kW systems. Whereas, 101–200 units get 1.1 kW systems.
• Around 861,000 households applied; installations begin after physical verification, with expected rollout by July 2025. Panels and inverters will be linked to CNICs to prevent theft.

Limitations & Tax Considerations

• The scheme exclusively targets households consuming ≤ 200 units/month; middle income and higher consumption users are ineligible.
• Net metering buyback rate reduced from Rs 27 to Rs 10/unit in March 2025 for new consumers, leading to lowered grid subsidy burden but reducing financial incentive
• The 2025–26 federal budget proposes a new 18% sales tax on imported solar panels, which may increase project costs for homeowners and businesses.

Application Process (How to Apply)

• Online
  o Visit the official portal click here
  o Provide electricity bill reference number & CNIC
  o Eligible applicants enter digital balloting
• SMS method
  o Send bill reference and CNIC to 8800 for registration
• Once selected
  o Undergo physical verification
  o System installed free of cost (panel + inverter)
  o Linked to CNIC to prevent misuse

Benefits of Solar Energy: Savings & Long Term Return

• Lower electricity bills: Once installed, solar systems offset billable units; net metering allows export of surplus (though now at Rs 10 per unit).
• Energy independence: Reduced reliance on grid power; useful especially where load shedding or surcharges hit middle income users.
• Environmental impact: The first phase alone may cut around 57,000 tonnes of carbon emissions annually.
• Long term investment: Payback periods of 2–4 years are typical under net metering; potential savings for home owners and small industrial user.

Why This Matters for Middle Income Homeowners & Small Businesses

• Eligible households (≤ 200 units/month) gain immediate benefit via free installation.
• Others (homeowners, SMEs, industries) can still invest privately in solar panels + inverter systems. Though subject to 18% tax, panel prices remain significantly lower thanks to Chinese imports and net metering policies.
• This infrastructure becomes a long-term hedge against rising electricity tariffs, aiming for energy self-sufficiency even if grid pricing increases.

Recommended Additional Resource

For homeowners and businesses considering solar installation beyond the free scheme, Pemco Engineering provides design, installation, and net metering support services in a streamlined way, mentioned here as a reputable reference without urging commitment.

Key Takeaways

• The CM Punjab Free Solar Scheme offers free solar systems for low-usage households (≤ 200 units/month).
• It is transparent and digitized, but eligibility is limited.
• Net metering buyback rates have decreased, and new sales tax may raise costs for future private installations.
• Solar energy delivers bill savings, environmental benefits, and long-term value.
• Middle-class owners not covered by the free scheme can still invest in on-grid solar + inverter, calculating payback with current net metering and equipment costs