As solar energy adoption surges across Pakistan, the government is considering a major shake-up in its net metering policy, sparking concern among solar users and energy experts alike.
While no final decision has been made, insiders suggest that a significant reduction in the buyback rate — from Rs27 to Rs10 per unit — is one of several proposals currently under review.
The Power Division on Thursday clarified that discussions are still ongoing and no policy change has been approved yet. “It's premature to form conclusions,” said a spokesperson. “The matter is yet to be presented to the Prime Minister, and consultations are still in progress.”
However, sources within the Ministry of Energy revealed that a principled decision to revise the net metering policy has been taken. A summary has reportedly been prepared and will be submitted to the federal cabinet following the budget announcement.
One of the proposals causing a stir involves slashing the per-unit payment solar users receive for feeding surplus electricity back to the grid — a move critics say could discourage clean energy adoption.
Solar boom pressures grid stability
Pakistan’s solar capacity has grown exponentially — from just 321 megawatts in 2021 to over 4,124 megawatts by the end of 2024. Net metering consumers also jumped from 226,440 in October to 283,000 by December 2024. In the Lahore Electric Supply Company (Lesco) network alone, solar energy generation has reached 1,400 megawatts.
This solar boom, while a win for clean energy, has sparked concern among officials. The Economic Coordination Committee (ECC), led by Finance Minister Muhammad Aurangzeb, believes the system is now placing an unfair burden on conventional grid users.
Government figures claim that by the end of 2024, net metering policy users had shifted Rs159 billion in costs onto other consumers — a figure projected to skyrocket to Rs4.24 trillion by 2034 if left unaddressed.
But the issue isn't just about solar. Critics point to high-tariff agreements signed with Independent Power Producers (IPPs) between 2013 and 2018. These deals locked in some of the highest electricity rates in Asia and continue to weigh heavily on Pakistan’s power sector.
“These legacy contracts have left little room for flexibility,” energy experts argue. “Now, with solar users growing and fixed costs still looming large, the pressure is being felt across the grid.”
Originally introduced under the 2006 Renewable Energy Policy, net metering policy aimed to reduce loadshedding and promote clean energy by allowing consumers to sell excess power back to the grid. But with installation costs dropping and uptake soaring, officials now argue that the model must be rebalanced.
Energy Minister Awais Leghari and ECC members say urgent action is needed. “Fixed costs of transmission and distribution are increasingly falling on traditional users,” they noted. “Revising the net metering policy is essential to ensure fair cost-sharing.”
