The Ministry of Energy has approved a major revision to Pakistan’s net metering policy, introducing a fixed per-unit compensation rate for solar power consumers supplying electricity back to the grid.
Under the new framework, solar users will be compensated at Rs11 per unit, down from the previous Rs25.98 rate, reflecting adjustments to align incentives with market dynamics and grid sustainability requirements.
The duration of solar power agreements has been reduced to five years, and all installations up to 25 kilowatts now require a licence from Nepra, whereas earlier domestic and commercial consumers were exempt.
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Unlike the earlier net metering system, where excess electricity offset consumption, the revised net billing policy applies a fixed exchange rate, while electricity drawn from the grid continues to be charged under Nepra-approved tariffs.
Ministry officials stated that continuation of the previous policy was no longer feasible due to financial and operational challenges, assuring that the change would not significantly affect most solar consumers across the country.
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The decision follows months of consultations with distribution companies, regulatory authorities, and other stakeholders, aiming to ensure long-term sector stability and consistent implementation of renewable energy regulations.