Daily Times

The government is contemplating a significant reduction in the rates paid to consumers who generate solar power through net metering, a move that may ignite criticism and concern. The potential change comes as solar power adoption in Pakistan has surged, with installed capacity reaching 3,000 megawatts, reported a section of the press. Currently, net metering users receive Rs21 per unit for the excess electricity they feed back into the grid. However, the government is considering a drastic cut, bringing the rate down to Rs11 per unit.

The proposed reduction would translate to a loss of Rs10 per unit for solar power generators.

The government’s rationale behind the move is rooted in the financial burden of capacity charges paid to Independent Power Producers (IPPs). These charges are incurred regardless of whether the government actually purchases electricity from IPPs. The widespread adoption of solar panels has disrupted the government’s capacity payment plan. The sources told that wealthier individuals who can afford solar panels are going solar and recieving zero bills, shifting the cost burden of capacity charges onto poorer consumers who rely on conventional electricity sources.