ISLAMABAD: Pakistan’s Federal Energy Minister, Sardar Awais Ahmed Khan Leghari, has announced plans to change the net metering policy and solar energy rates. He said a proposal will be sent to the Economic Coordination Committee (ECC) for approval. The new rules will apply only to those who install net meters after the policy is approved. Existing users will keep their current contracts.
Sardar Awais Ahmed Khan Leghari, speaking to a private TV channel, said new consumers will recover their investment in 4 to 5 years through bill savings. However, they will sell extra electricity to the grid at the national average cost, expected to be 9.5 to 10 rupees per unit. The new rate will need approval from the federal cabinet.
Government’s Plan and IMF Concerns
Reports suggest the government has shared a plan with the International Monetary Fund (IMF) to lower net metering tariffs. Currently, the government buys extra solar power at 27 rupees per unit. The proposal aims to reduce this to around 10 rupees per unit.
The IMF has also asked how the government plans to deal with solar panel users who avoid connecting to the grid.
Impact on Electricity Prices
A report from the Power Division says net metering users have added a 159 billion rupee burden on those who rely only on the grid. This has raised their electricity rates by 1.5 rupees per unit. It also says that wealthier net metering users benefit at the cost of poorer grid users.
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The number of net metering consumers has grown to 283,000, up from 226,440 in October 2024, which has led to debates about balancing solar energy growth with fair electricity prices.
As per reports, solar energy use has increased in Pakistan due to high electricity prices and frequent power cuts. The government says the current policy shifts costs onto non-solar users, making a change necessary. Experts say the proposed rate of 9.5 to 10 rupees per unit is much lower than the current 21 to 27 rupees, which may extend the payback time for new users.
The final decision will be made after cabinet approval.
