ISLAMABAD – Solar users across Pakistan waited anxiously, hoping government would finally decide on the future of net metering, and now, the wait is over as Prime Minister Shehbaz Sharif approved a big cut in the buyback rate amid overhaul in the country’s solar landscape.
After months of silence and mounting speculation, the premier finally stepped into the raging net metering thing, ordering Power Division and NEPRA to immediately verify drastic new tariff plan that could slash solar buyback rates by nearly half.
The new orders come as premier demanded swift action after Power Division’s long-pending proposal to reduce the buyback rate from Rs 22 to Rs 11.30 per unit stalled for months amid political resistance and public outcry.
Officials said the government believes the current rate unfairly burdens ordinary consumers, but solar users argue this move could cripple Pakistan’s clean energy revolution.
Power Division and NEPRA got task to recheck everything, from financial math to legal implications, before making any move.
Under new plan, a legal audit will be done for all existing net metering contracts signed under the 2015 rules to determine whether the government can legally slash rates without triggering lawsuits or investor backlash.
Mushrooming of rooftop solar dented national grid, with an estimated loss of 3.2 billion kWh in FY2024, adding an Rs 101 billion burden on other users and pushing tariffs up by nearly Rs 0.90 per unit. If left unchecked, net metering could cause losses of Rs 545 billion by FY2034.
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