The Economic Coordination Committee (ECC) has made a big decision that will impact solar net-metering consumers in Pakistan. In a recent meeting led by Finance Minister Senator Muhammad Aurangzeb, the committee approved amendments to net-metering rules, reducing the price at which the government buys electricity from solar users.
New Buyback Rate for Solar Energy
Previously, solar consumers who sent excess electricity back to the national grid were paid according to the National Average Power Purchase Price (NAPP). Now, the government has set a fixed buyback rate of Rs. 10 per unit. The National Electric Power Regulatory Authority (NEPRA) will also have the power to revise this rate from time to time to keep it aligned with market conditions.
However, there’s good news for existing net-metering consumers. If you already have a valid agreement under the NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015, your agreed rate will stay the same until your contract expires.
Changes in the Settlement Mechanism
The ECC has also made adjustments to how solar energy transactions will be billed. Now, imported and exported units will be accounted for separately. If you generate excess electricity and send it to the grid, you will be paid Rs. 10 per unit. However, when you consume electricity from the grid, you will be charged according to peak and off-peak tariffs, along with applicable taxes and surcharges.
Why These Changes Were Made
The government explained that the number of solar net-metering users has grown rapidly, creating financial challenges for grid consumers. As of December 2024, the number of solar users had reached 283,000, up from 226,440 in October 2024. The total solar capacity also increased from 321 MW in 2021 to 4,124 MW by the end of 2024.
With more people generating their own electricity and sending less revenue to power companies, grid consumers have been left to bear the cost of maintaining the electricity infrastructure. The Power Division highlighted that by December 2024, net-metering users had shifted a financial burden of Rs. 159 billion onto grid consumers. Without intervention, this figure could grow to Rs. 4,240 billion by 2034.
Who Will Be Affected the Most?
The government also pointed out that 80% of net-metering users are located in just nine major cities, with many concentrated in wealthier neighborhoods. Since these users benefit from net metering while avoiding fixed electricity charges, the financial burden shifts onto regular grid consumers who rely on conventional electricity.
What This Means for the Future
These changes aim to create a more balanced and sustainable energy system. The government wants to ensure fairness between solar and grid consumers while maintaining the financial health of the power sector. By adjusting the net-metering rates and billing structure, they hope to reduce electricity prices for the general public and prevent power companies from facing further losses.
The new regulations will come into effect soon after NEPRA incorporates them into the official framework. For now, solar users should prepare for a revised pricing model while new net-metering applicants will have to adjust their financial calculations accordingly.
This move marks a major shift in Pakistan’s energy landscape, and while it may affect solar consumers’ returns, it is aimed at ensuring long-term stability in the country’s power sector.
Read Also: Omani Students Develop Smart AI Drone for Solar Panel Checks!
