Federal Minister for Energy Sardar Awais Ahmad Leghari has announced that the number of solar net metering consumers is expected to rise significantly under the government’s new energy policy.
The move is aimed at promoting renewable energy while balancing financial implications for grid consumers.
Earlier this week, the Economic Coordination Committee (ECC) of the cabinet approved a revision in the buyback tariff for solar rooftop consumers, reducing it from Rs 27 per unit to Rs 10 per unit. The change has sparked debate among stakeholders, with some arguing that it may discourage solar adoption, while others see it as a necessary step for maintaining grid stability.
Speaking to Geo News, the minister assured that solar consumers would still find the investment viable, noting that the payback period—the time required to recover the installation cost—remains around four years. He emphasized that the government is not discouraging solar energy and has not imposed any new taxes on solar panels or net metering.
According to the minister, solar energy capacity has grown rapidly, with an estimated 1,500MW to 2,000MW added to the grid in the past 15 months. He projected that around 1,200MW of solar electricity would continue to be integrated into the system annually, further expanding the role of solar net metering in Pakistan’s energy landscape.
Responding to concerns about the revised buyback rates, the minister clarified that the changes would only affect new applicants for net metering, while existing consumers would continue under their current agreements. He also dismissed claims by former finance minister Miftah Ismail that an 18% tax would be imposed on exported solar energy, stating that such reports were based on misinformation.
The ECC’s decision to lower the buyback tariff was driven by the financial strain on grid consumers, which reportedly increased from Rs 34 billion last year to Rs 150 billion due to reduced grid usage and steady capacity payments. Under the new framework, exported solar units will be compensated at Rs 10 per unit, while imported electricity will be billed at standard peak and off-peak rates, inclusive of applicable taxes.
To ensure long-term flexibility, the ECC has granted Nepra the authority to periodically review and adjust the buyback rate in response to market conditions. Additionally, new settlement guidelines will be incorporated into the regulatory framework to provide clarity on billing procedures for solar net metering consumers.
The decision underscores the government’s commitment to managing the rapid expansion of solar energy while addressing the economic realities of net metering’s impact on the national power grid.