Islamabad: Under a proposed new solar policy, the Government of Pakistan has decided to phase out the net metering system and introduce gross metering for residential and commercial solar power producers. A new buyback rate has also been determined, and the policy will soon be presented to the Prime Minister for approval before being finalized by NEPRA and the Federal Cabinet.
According to the Power Division, the current net metering mechanism has placed a financial burden of Rs. 103 billion on the national treasury, along with Rs. 159 billion in additional pressure on grid electricity consumers. In light of these findings, the transition to gross metering is being implemented, under which the new electricity buyback rate is fixed at Rs. 11.33 per unit. However, existing solar users will continue to sell electricity at the previous rate of Rs. 27 per unit.
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The new policy also introduces a formula linking future buyback rates to one-third of the current consumer electricity tariff. For instance, if the prevailing rate is Rs. 33 per unit, solar producers will receive Rs. 11 per unit for the electricity they feed into the grid. The Power Division has set a target of adding 8,500 MW of solar energy to the national grid in a bid to achieve energy self-sufficiency.
Earlier, solar investors and users had rejected proposals to reduce net metering rates, expressing concerns that such a move could discourage public interest in renewable energy. With the implementation of the new policy, significant shifts are expected in Pakistan’s solar energy landscape and future investment trends.
