Amir Saeed

The costs incurred by low-income households switching to solar energy highlight the need for sliding scale tax credits from the government to make sustainable energy solutions more accessible to all. Speaking with WealthPK, Dr. Qais Aslam, former chairman of the R&D Committee at the University of Central Punjab, noted that the expense of installing solar panels is a significant barrier for many low-income families. While government and NGO programs promote solar energy, the initial investment often surpasses what vulnerable households can afford. He emphasized that sliding scale tax credits are essential to expanding solar energy access for low-income households. By offering financial aid and adjusting tax rates according to income levels, the government could make solar technology more affordable. “These incentives would allow lower-income families to invest in solar panels without facing the crippling burden of upfront costs, creating a more inclusive approach to eco-friendly initiatives. This strategy would not only stimulate the solar energy market but also encourage a sense of ownership and responsibility toward sustainable practices among communities.”

He added, “Moreover, sliding-scale tax incentives could drive job creation in the green energy sector. As more households adopt solar technology, demand will grow for skilled labor in installation, maintenance, and support services.” Local communities, especially in areas with limited career opportunities, may see substantial increases in employment prospects. By ensuring solar energy access for low-income households, the government can address environmental concerns and spur economic growth. Dr. Sajid Amin Javed, Deputy Executive Director of Research at SDPI, observed that in a country where 39% of the population lives below the poverty line, the expense of solarization diverts funds from essential needs like food, healthcare, and education. Without sufficient financial support, environmentally focused initiatives could unintentionally worsen social inequalities. “A sliding tax structure, where contributions are based on the ability to pay, could generate revenue for reinvestment into low-income communities.

By ensuring corporations and wealthier citizens contribute fairly, the government can create a more equitable system that supports environmental sustainability and lifts vulnerable groups out of poverty.” He added that implementing such a system would require a coordinated effort among the government, financial institutions, and civil society. Policymakers must design tax incentive programs that are transparent and straightforward for low-income households to navigate. “Collaborating with NGOs and community organizations can help spread awareness and assist households in applying for these benefits, ensuring that resources for solarization reach those most in need.” The SDPI official also suggested that public awareness campaigns could educate citizens on the long-term benefits of solar energy and the available financial assistance. Many low-income households may not realize the potential savings on electricity bills or the environmental advantages of switching to solar power. By raising awareness, the government can foster a shift in mindset toward sustainability that values both individual and collective responsibility.

Credit: INP-WealthPk