Govt Halts Solar Net Metering Policy Changes Amid Public Backlash
- Abeera Marium Siddiqui
- March 28, 2025
- 11:06 am
- 37
- Current Affairs
The solar net metering policy will remain unchanged for now. The the federal cabinet has postponed its proposed revisions after facing strong public criticism. Prime Minister Shehbaz Sharif and several ministers opposed the revisions. The government will now hold further discussions with stakeholders before making a final decision.
Cabinet Rejects Proposed Changes
The decision was made in a cabinet meeting led by Prime Minister Shehbaz Sharif. The proposed policy aimed to cut the buyback rate for extra solar energy from Rs. 27 per unit to Rs. 10 per unit. This move sparked backlash from the public and industry experts. They argued that it would discourage solar energy adoption.
The prime minister and key ministers rejected the proposal. They directed the energy minister to review the solar net metering policy. The revised plan will now go through more discussions before any final approval.
Why the Government Wanted Changes
Earlier, the Economic Coordination Committee (ECC) approved the reduction in buyback rates. Officials argued that solar users were shifting costs onto grid consumers. Reports showed that solar consumers transferred Rs. 159 billion in costs in 2024. Experts warned that this amount could reach Rs. 4,240 billion by 2034.
If the new policy were approved, the buyback rate would drop to Rs. 10 per unit. Grid electricity prices, however, would remain high at Rs. 42 per unit during off-peak hours and Rs. 48 per unit during peak hours.
The policy also proposed restricting solar system installation to 10% of a consumer’s sanctioned load, a sharp decrease from the previous 50% limit.
Relief for Solar Consumers
For now, solar consumers can continue selling excess electricity at the existing rates. This decision brings relief to thousands of households and businesses. Many had invested in solar energy expecting long-term savings. Experts believe that lowering the buyback rate would slow down Pakistan’s shift to renewable energy.
Minister for Power Division Sardar Awais Ahmed Khan Leghari assured the Senate Standing Committee that existing net metering contracts will stay valid until expiration. Consumers who installed solar panels without net metering will also remain unaffected.
Future of Net Metering in Pakistan
The government is trying to balance energy costs while promoting renewable energy. The Power Division will review the solar net metering policy and submit a revised plan after consulting stakeholders. Officials are discussing whether the buyback rate should change while keeping solar investment profitable.
Meanwhile, the government is working on lowering electricity tariffs. Savings from reduced petroleum prices will help cut power costs. The government has also approved agreements between the Central Power Purchasing Agency (CPPA) and bagasse-fired power plants under new terms.
The Senate Standing Committee also reviewed issues related to independent power producers (IPPs). Negotiations with several IPPs have led to revised tariff agreements, which could save billions of rupees. However, some agreements remain pending.
The Power Division told the committee that these negotiations should conclude by April or May. Lawmakers have requested a detailed report on how these agreements will benefit consumers.
