HYDERABAD – As more households turn to solar panels, the electricity grid is feeling the hear. Net metering users, who export surplus energy to the grid, may soon face fixed charges of Rs 1,000 per kilowatt.
Sukkur Electric Power Company (SEPCO) proposed imposing fixed charges of Rs1,000 per kilowatt on net metering users. According to reports, this move comes as net metering users increasingly rely on the national grid for backup supply, while not contributing to grid maintenance costs, resulting in higher costs for non-solar users due to cross-subsidization.
The proposal includes levying Rs 7,000 in fixed charges on users with 7 kW solar systems. Following similar applications from PESCO and MEPCO, SEPCO and HESCO have submitted their requests to NEPRA for approval.
NEPRA has expressed surprise at the high proposed rates and has asked SEPCO to provide detailed calculations supporting the fixed charges, along with information on any outstanding dues from net metering users.
Additionally, Hyderabad Electric Supply Company has suggested introducing fixed network usage charges for net metering consumers, calculated based on their load or exported units, and has recommended a gross metering framework to eliminate cross-subsidization.
In recent developments, Prime Minister Shehbaz Sharif directed Power Division to review proposed net metering buyback rates in coordination with NEPRA. The review will assess the impact on other electricity consumers and ensure compliance with existing contracts under the Net Metering Rules 2015.
As per available information, Power Division proposed reducing the current rate from Rs22 per unit to around Rs 11.30 per unit, citing financial pressures on non-solar users. New standard contracts under a proposed Net Billing framework will also be drafted for future consumers.
Net metering growth cut electricity sales, increasing costs for other consumers. By FY2034, net metering capacity is expected to reach 8,000 MW, potentially raising tariffs for grid-connected users. High daytime rooftop solar generation has occasionally stressed the national grid, highlighting the need for a balanced approach to distributed energy.
