Govt Ready to End Solar Net Metering in Pakistan

Govt Ready to End Solar Net Metering in Pakistan

The federal government plans to end solar net metering in Pakistan soon. This step will reshape how rooftop solar energy works across the country.

According to officials, the Power Division has almost finished drafting a new solar policy. It wants to scrap net metering and introduce gross metering instead. Under gross metering, households must sell all the electricity they produce to the grid at a fixed rate. They will no longer use that power to reduce their own bills.

The Power Division will send the draft to the federal cabinet once it clears the National Electric Power Regulatory Authority (NEPRA). Officials believe this change is necessary to manage the growing share of solar power. It will also ease the extra costs that net metering puts on other consumers.

One big shift is the buyback rate. Right now, solar users get about Rs. 27 per unit for extra power sent to the grid. Under the new plan, they will get Rs. 11.33 per unit instead. This is almost 60% lower than before.

However, there is relief for existing users. Those who already have net metering will keep their higher rate until their agreements expire. The new rate will apply only to new connections under the fresh policy.

To keep prices balanced, the government also plans to link future buyback rates to one-third of the normal electricity tariff. For now, Rs. 11.33 per unit will be the base rate. The policy aims to add 8,500 megawatts of solar power to the grid in the coming years.

Officials say the current system shifts huge costs to other consumers. They estimate net metering has added Rs. 159 billion in extra costs. About Rs. 103 billion comes from paying higher rates for solar energy. By moving to gross metering, they hope to share costs more fairly.

While this plan could slow new rooftop solar projects, the government believes fairness is more important. If the cabinet approves the draft, Pakistan’s solar sector will enter a new phase. Homeowners will still help power the grid, but they won’t save as much on their own bills.

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