ISLAMABAD — The government is considering a major revision to Pakistan’s solar net metering policy, proposing to slash the buyback rate from Rs22 per unit to around Rs11.30, The News reported on Friday. The move follows concerns that the current rates are burdening grid electricity consumers with rising costs.
Official data shows that the rapid expansion of rooftop solar systems led to a 3.2 billion unit drop in grid power sales during FY2024, resulting in Rs101 billion in lost revenue for power distribution companies. This shortfall has translated into an average tariff increase of Rs0.9 per kWh for conventional electricity users.
Read More: Solar energy consumers in Pakistan to pay 18% sales tax
Projections by the Power Division indicate the problem could worsen, with potential losses of 18.8 billion units by FY2034, equating to Rs545 billion in financial impact and a possible Rs5–6 per unit hike in electricity tariffs. The issue has drawn Prime Minister’s direct intervention, who has ordered the Power Division and Nepra to review and verify the buyback tariff before implementing reforms.
An energy official noted that “the system is effectively being used as battery storage for solar consumers,” allowing them to sell excess power at high rates while avoiding fixed charges — a cost that then falls on other consumers.
Read More: Govt ends net metering, sets new solar buyback rate at Rs11.33
To address the imbalance, the Power Division has proposed lowering the buyback rate to Rs11.30 per unit, reflecting current solar generation costs, which are now below Rs10 per unit for new plants. With solar capacity reaching nearly 6,000MW nationwide, officials warn the imbalance could also cause operational challenges during low-demand winter months.