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Govt introducing fixed charges on solar net metering under new policy?

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ISLAMABAD – Different speculations rife about solar net metering as a massive surge in net metering installations disrupted the government’s ability to manage capacity charges.

Amid reports about the end of solar net metering, the Power Division turned down reports about the end of Pakistan’s net metering policy, saying there is no truth to these claims and no instructions issued in this regard.

The clarification comes as a digital publication reported about a document claiming that special instructions on net metering tariff rationalization have been issued, concerning amendments to the Net Metering Regulations.

It was reported that PM Shehbaz Sharif ordered the end of solar net metering in Pakistan and the imposition of fixed charges on households installing solar systems.

PML-N-led alliance government reportedly created dual rates for the purchase and sale of solar-powered electricity. The proposed fixed charges on solar consumption will be collected monthly. Furthermore, authorities are planning to amend Net Metering Regulations and introduce a separate tariff category to increase revenue from solar users seeking to avoid the unaffordable grid electricity.

In a similar update, the incumbent government approved the establishment of a 600 MW solar power plant in collaboration with Saudi Arabian investors. Prime Minister Shehbaz Sharif prioritized the submission of a summary outlining both proposals. If approved, the new position on solar net metering will likely take effect in the upcoming fiscal year.

As people are concerned about the development, Energy Minister Awais Leghari also trashed reports on May 20, 2024, about abolishing solar net metering, stressing the importance to the coalition government.

Some other reports also mentioned the replacement of net metering with gross metering. Prime Minister’s recent instructions confirm these previous reports.

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