Karachi, March 16, 2025 – Ahmed Chinoy H.I, S.I, Chairman of the Pakistan Cloth Merchants Association (PCMA), has strongly condemned the recent announcement regarding proposed cuts in net metering rates for solar electricity in Pakistan.
The PCMA believes that this decision is a major setback for the country’s transition to clean and sustainable energy, undermining the progress made in solar adoption among households and businesses. Such a move threatens energy security, environmental sustainability, and the economic viability of thousands of solar consumers across the nation.
The PCMA emphasizes that the net metering policy has played a crucial role in empowering consumers to generate their own clean energy while contributing surplus power to the national grid. This has significantly reduced reliance on costly fossil fuel-based electricity. However, the proposed reduction in net metering rates threatens to discourage future investments in solar energy, slowing down Pakistan’s much-needed shift towards renewable sources at a time when the country is already grappling with an energy crisis and escalating power tariffs.
Key Concerns Raised by PCMA:
1. Disincentivizing Renewable Energy: Lowering net metering rates will discourage households and businesses from adopting solar power, reversing the momentum towards a greener and self-sufficient energy future.
2. Increased Financial Burden on Consumers: Many Pakistanis have made substantial investments in solar power solutions with the expectation of fair compensation for surplus energy. Reducing net metering rates will negatively impact their return on investment, making solar adoption less appealing.
3. Contradiction to Climate Commitments: Pakistan, as one of the most climate-vulnerable nations, has pledged to increase its reliance on renewable energy. Cutting net metering rates contradicts the country’s commitments to reducing carbon emissions and promoting sustainable practices.
4. Strain on the National Grid: The adoption of solar energy helps alleviate pressure on the national grid and reduces power shortages. By making solar energy less attractive, this policy could further exacerbate Pakistan’s existing energy crisis.
The PCMA chairman has urged the government and regulatory authorities, including NEPRA and the Ministry of Energy, to reconsider this ill-advised move and to prioritize policies that promote, rather than hinder, renewable energy growth. The PCMA also calls upon the public, energy experts, and environmental advocates to raise their voices against these cuts and to support a fair and sustainable energy transition.
Pakistan cannot afford to regress in its pursuit of energy independence and climate resilience. The PCMA demands an immediate reversal of this proposed policy and a reaffirmation of the government’s commitment to a cleaner and greener future for all Pakistanis.