ISLAMABAD – Pakistani government had concerns about solar net metering, as the continuous rise in net metering installations affected ability to manage capacity charges. This was also creating problems as the upscale segment was adopting net metering systems at full pace.
The incumbent government is planning to slash rates paid to consumers who generate solar power through net metering, an unpopular opinion in public that draws criticism.
A report shared by a local publication said the installed capacity reached 3,000 megawatts amidst surge in solar power adoption.
Solar Net Metering New Rates
As of April 2024, net metering users are receiving Rs21 per unit for excess electricity fed back into the grid, but alliance government is looking to cut this rate to Rs11 per unit, resulting in a loss of Rs10 per unit for solar power generators.
Despite the growing concerns, the government cited financial burden of capacity charges paid to Independent Power Producers (IPPs), which are incurred regardless of whether the government purchases electricity from IPPs.
The hike in solar panel’s demand also disrupted the government’s capacity payment plan, while government argue that this rate allows consumers to recover their solar panel installation costs within 18 months, while power supplying companies are asking to extend this payback period to 10 years.
