ISLAMABAD – Blow to thousands of solar energy users across Pakistan, as government is preparing to introduce major changes to country’s solar net metering policy. The decision comes as part of broader energy sector reforms aimed at reducing pressure on the national grid and ensuring long-term sustainability.
As per officials sources, Power Division finalized plan to eliminate key benefits currently enjoyed by solar users. The most notable change is proposed shift from existing net metering system to a net billing model, which would reduce buyback rate for surplus electricity from Rs27 per unit to Rs10 per unit.
The revised plan proposed cutting zero-bill facility and reduction of sanctioned load from 1.5x to 1.0x, compelling consumers to invest in hybrid solar systems equipped with lithium batteries. Industry experts warn this could lead to an annual import cost of $1 billion for batteries alone.
Under the proposed structure, rooftop solar users will no longer be able to offset their grid consumption with exported units. Instead, any excess electricity will be monetized monthly at reduced rate, replacing the current quarterly credit system. However, all consumer categories—domestic, commercial, and others—will continue to be eligible for the scheme. The license validity period is also being shortened from seven years to five.
Energy Minister Leghari addressed controversy, saying government has no intention to abolish net metering but is restructuring it to make the system “more transparent, efficient, and sustainable.” He added that when net metering was first introduced in 2017–18, it was a small-scale program, but its rapid growth now poses serious technical and financial challenges to the grid.
“This is not a move to discourage solar adoption,” Leghari said. “If someone is using 40% of their own generated power, and recovers investment in three years, that remains a sound business model.” He further hinted at aligning solar buyback rates with the energy market rate to create an automatic price adjustment mechanism.
The minister outlined broader energy reforms, including cancellation of 9,000 megawatts worth of expensive and unnecessary power projects. As debate continues, stakeholders are urging the government to carefully assess the economic and environmental implications of the proposed solar reforms.
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