Govt Reduces Solar Net Metering Buyback Rate to Rs. 10 Per Unit
- Abeera Marium Siddiqui
- March 14, 2025
- 2:05 pm
- 41
- Business
The solar net metering rate in Pakistan has been reduced from Rs. 27 per unit to Rs. 10 per unit. The government made this decision to ease the financial strain on grid electricity consumers. The Economic Coordination Committee (ECC) approved this change due to the rising number of solar users. As more people switch to solar energy, grid-dependent consumers face higher costs.
ECC Approves Key Amendments
Finance Minister Muhammad Aurangzeb led the ECC meeting that finalized the new net-metering rules. These amendments aim to ensure fair electricity pricing.
Under the new policy, the National Electric Power Regulatory Authority (NEPRA) can now adjust the solar net metering rate as needed. This flexibility helps align energy policies with market conditions.
Existing solar consumers with valid agreements will not be affected by the new rate. Their contracts will remain valid until they expire. They will continue to follow the NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015.
New Billing Structure for Solar Consumers
The government has also introduced a new billing system for solar users. Under this structure:
- Exported electricity (sent to the grid) will be bought at Rs. 10 per unit.
- Imported electricity (taken from the grid) will be charged based on peak and off-peak tariffs.
- Additional taxes and surcharges will apply to imported units.
The Power Division will issue guidelines to NEPRA for a smooth transition. These rules will be officially added to the regulatory framework after cabinet approval.
Rising Solar Users Impact Grid Consumers
The number of solar net metering users in Pakistan has increased sharply. Lower solar panel costs have encouraged more households to install solar systems.
By December 2024, Pakistan had 283,000 solar net metering users, compared to 226,440 in October 2024. The total installed solar capacity also grew significantly, reaching 4,124 MW in December 2024 from just 321 MW in 2021.
This rapid growth affects grid electricity prices. As more consumers switch to solar, fewer people pay for the grid’s fixed charges. These charges include costs for power transmission and system maintenance. With fewer people covering these costs, grid electricity prices rise for those who still rely on it.
Financial Burden on the Energy Sector
The Power Division reported that solar net metering users shifted Rs. 159 billion in costs to grid consumers by the end of 2024. If the current trend continues, this amount could rise to Rs. 4,240 billion by 2034.
Another issue is the uneven distribution of solar users. Around 80% of net-metering consumers are concentrated in nine major cities. Many of them are from wealthier areas. This means lower-income consumers who cannot afford solar power end up bearing more of the grid electricity costs.
The new regulations aim to create a fairer system. The ECC’s amendments will help balance the costs between solar and non-solar users while ensuring the stability of the power sector.
