Islamabad, March 13, 2025 – The Economic Coordination Committee (ECC) of the Cabinet has approved significant amendments to the existing net-metering regulations to address the increasing financial strain on grid consumers.
The decision was taken during an ECC meeting chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and attended by Minister for Power, Sardar Awais Ahmed Khan Leghari; Minister for Maritime Affairs, Qaiser Ahmed Sheikh; Minister for Petroleum, Ali Parvez Malik, alongside federal secretaries and senior officials from relevant ministries and divisions.
The amendments to the net-metering framework were necessitated by the rapid rise in the number of solar net-metering consumers and its financial implications for grid consumers. The ECC highlighted that the growing adoption of net metering has transferred a substantial cost burden to traditional electricity consumers, necessitating regulatory adjustments.
Under the newly approved changes, the ECC has revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs 10 per unit. Additionally, the committee approved a proposal—subject to Cabinet ratification—to empower the National Electric Power Regulatory Authority (NEPRA) to periodically revise the buyback rate to ensure flexibility and alignment with market dynamics.
The ECC clarified that the new regulations would not impact existing net-metering consumers who hold valid licenses, agreements, or concurrence under the NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015. These consumers will continue to benefit from the agreed-upon buyback rates until their agreements or licenses expire.
Furthermore, the ECC approved updates to the net-metering settlement mechanism. Under the new structure, exported and imported units will be treated separately for billing. Exported electricity will be purchased at the revised Rs 10 per unit rate, while imported electricity will be billed based on applicable peak and off-peak tariffs, inclusive of taxes and surcharges.
The ECC was informed that as of December 2024, solar net-metering consumers had already transferred a financial burden of Rs 159 billion onto grid consumers. This figure is projected to rise dramatically to Rs 4,240 billion by 2034 without necessary interventions. The number of solar net-metering consumers surged to 283,000 by the end of 2024, up from 226,440 in October of the same year. Similarly, the total installed capacity expanded from 321 MW in 2021 to 4,124 MW by December 2024, demonstrating the sector’s rapid growth.
The ECC deliberated on the financial repercussions of solar net metering, particularly concerning the avoidance of fixed capacity charges by net-metering consumers. This trend has placed an undue financial burden on grid consumers, further increasing electricity tariffs. Moreover, the committee observed that approximately 80% of solar net-metering consumers are concentrated in nine major cities, with a significant proportion residing in affluent areas, reinforcing the need for regulatory reforms to ensure fairness in electricity distribution.
Additionally, the ECC reviewed inflation trends, noting a decline in CPI, food inflation, and SPI, attributed to fiscal discipline, improved supply chains, and targeted subsidies. The committee also discussed an export exemption for Potassium Sulphate Fertiliser from Gwadar Port, approving a limited allowance for M/s Agven Private Limited to export up to 10,000 tons annually or 50% of actual production.
The ECC’s decision to revise net-metering regulations underscores the government’s commitment to ensuring a fair and sustainable energy framework while safeguarding the interests of both net-metering and grid consumers.