The National Electric Power Regulatory Authority (NEPRA) is considering a major revision to Pakistan’s solar net metering policy, proposing to cut the buyback rate from Rs 23 per unit to Rs 10, according to sources in the Power Division.
In the next phase, officials are also reviewing the option of removing the buyback mechanism entirely, which would mean solar consumers would not be paid for the excess electricity they send to the national grid. Instead, they would be required to consume all the solar power they generate.
Sources revealed that consumers producing solar energy are currently being paid around Rs 125 billion, a figure that has raised concerns within the energy sector. Officials believe that the current solar policy is increasing financial pressure on the national grid and contributing to rising power tariffs for non-solar users.
The Power Division reported that electricity consumption from the grid has declined sharply, with sales dropping by 3.2 billion units in FY2024, leading to a Rs 101 billion revenue loss for power distribution companies. This shortfall translated into a tariff hike of nearly Rs 1 per unit for regular electricity users.
Authorities warn that this financial gap will continue to widen over the coming decade as rooftop solar installations grow across Pakistan.
The matter has drawn the attention of Prime Minister Shehbaz Sharif, who on October 22 directed NEPRA and the Power Division to reassess the buyback tariff and evaluate its long-term impact before implementing any changes.
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