The federal government is considering a major reduction in solar energy buyback tariffs under the net-metering system to save around Rs4.3 trillion ($15.1 billion) over the next decade. Currently, domestic, commercial, and industrial solar producers sell electricity to the grid at Rs27 per kilowatt hour (kWh), which the government says is unsustainable in the long run.
Authorities from the Ministry of Energy are preparing a revised solar policy that proposes slashing the buyback rate by more than 60%, bringing it down to Rs10 per kWh. This change aims to remove existing disparities, as large-scale solar plants like Quaid-e-Azam Solar Power (Pvt.) Ltd. sell power at much lower rates, ranging between Rs9 and Rs11 per kWh.
Officials involved in the policy discussions revealed thatsolar tar the new plan is expected to be presented to the federal cabinet within a month. They added that this adjustment would align Pakistan’s solar pricing with global practices while making the overall energy pricing structure fairer and more efficient.
Moreover, the government plans to link the new solar buyback rates with the national base tariff. This approach would ensure consistent pricing standards across all sectors and eliminate the cost burden from high-priced solar purchases. The move could bring more financial balance to the energy sector over time.
Although the policy suggests a drastic cut in rates, officials clarified that the government still encourages domestic and distributed solar producers. They are included in the IGCEP (Indicative Generation Capacity Expansion Plan), which sets a limit on how much energy can be sourced from them.
In conclusion, while the revised net-metering policy may reduce earnings for solar users, the government believes it is necessary to protect the economy. Authorities say the plan is still under review, and final decisions will follow consultations and cabinet approval.