Pakistan Government Cuts Solar Metering Benefits
- Fahad Bin Khalid
- March 18, 2025
- 4:25 pm
- 39
- Current Affairs
Pakistan’s Solar Net Metering Policy Change Cuts Benefits for Users
The Pakistan solar net metering policy change has reduced benefits for solar panel owners by 63%. This decision increases electricity costs and discourages renewable energy adoption. Many users now face higher bills and fewer incentives to invest in solar power.
What the New Policy Includes
Under the new policy, rooftop solar panel owners must sell electricity to the national grid at Rs10 per unit. However, they must buy electricity at Rs65 per unit, significantly increasing their expenses.
Previously, users could offset the electricity they generated against what they consumed from the grid. The new policy removes this netting facility, forcing solar users to pay higher costs.
The Economic Coordination Committee (ECC), led by Finance Minister Muhammad Aurangzeb, approved this change. The government has also introduced stricter technical specifications to control low-quality solar panel installations.
Impact on Existing Solar Users
Current solar panel owners with valid contracts under NEPRA’s 2015 regulations are safe for now. Their existing agreements remain valid until they expire, with a maximum duration of seven years.
However, once these contracts end, users must follow the new rules. This change will reduce the long-term financial benefits of solar energy for many households.
Government’s Justification for the Policy Shift
The government claims this policy will ease the financial burden on non-solar consumers. Officials say the rise in solar users has caused a loss of Rs101 billion in the last fiscal year. They predict this loss could grow to Rs545 billion by 2034.
However, critics argue the government is ignoring bigger issues like electricity theft, unpaid bills, and idle power plants. These problems reportedly cause Rs600 billion in losses every year, much higher than the impact of net metering.
Decreased Incentives and Higher Costs
The new policy also limits the maximum solar system size that users can install. Previously, solar capacity could be 1.5 times the approved load, but now it must match the approved load exactly.
Additionally, the net metering contract duration has been reduced from seven years to five years. Users can no longer cash out excess electricity, meaning any surplus can only be used to reduce future bills.
Effects on Solar Energy Growth in Pakistan
Pakistan had seen rapid growth in solar energy adoption. Installed solar capacity increased from 5 MW in 2017 to 4,135 MW by December 2024. However, the Pakistan solar net metering policy change is likely to slow down this progress.
With fewer incentives and higher costs, fewer households may choose solar energy, which could impact renewable energy development in the country.
