KARACHI – The government of Pakistan has made changes to solar policy, cutting Net Metering contracts to five years, besides lowering buyback rates.
In a major shift, the coalition government made changes to duration amid concerns from net metering consumers who were previously receiving Rs.27 per unit for surplus power.
Solar Meter Contracts
The new policy stated that National Electric Power Regulatory Authority adjusted buyback rate based on National Average Power Purchase Price while exported electricity will be purchased at the approved rate, while imported units will be billed based on peak or off-peak rates.
In bid to maintain grid stability, the distribution companies have been instructed to conduct studies within the next 6 months to set capacity limits for each transformer and feeder, per reports.
National Electric Power Regulatory Authority will also enforce stricter standards for new net metering consumers, requiring the installation of inverters with grid interaction features, remote monitoring, and anti-islanding protection.
As per these guidelines, net metering capacity will be capped at a consumer’s sanctioned load, and any exported power exceeding ten percent of this limit will not be credited.
International Monetary Fund (IMF) raised concerns about the government’s handling of the growing number of off-grid solar panel owners, as no comprehensive solution has been implemented. In response, the government is taking steps to rationalize power tariffs, including decommissioning inefficient power plants and negotiating with Independent Power Producers (IPPs) for cost savings.
The federal government is considering using Rs1.3 trillion in fiscal space from lower debt servicing costs to reduce electricity tariffs. These efforts aim to restructure Pakistan’s power sector for greater efficiency and sustainability amidst rising solar energy adoption.
