ISLAMABAD – A new Net Metering framework limits Solar Energy contracts to five years as the government introduced a significant change to the net metering system.
The move comes as part of a broader regulatory overhaul aimed at addressing concerns over the financial sustainability of the net metering program.
Sources from Power Division confirmed that the revised policy includes periodic adjustments to the buyback rates, with the rate for solar-generated electricity set at Rs 10per unit. This reduction follows public outcry after the buyback rate was slashed from Rs27 to Rs10 per unit.
As per new framework, net metering contracts will now be limited to five years, a major shift from the previous policy. This change aims to create a more dynamic system where contract terms are regularly updated, aligning with evolving energy market. Power Division sent detailed guidelines to the power sector regulator, Nepra, to facilitate the implementation of these changes.
In addition to the reduced contract term, exported and imported energy units will be billed separately under the new guidelines. The exported solar power will be purchased at the revised Rs 10 per unit buyback rate, while imported electricity will be billed at peak or off-peak rates. Consumers will not be allowed to redeem or cash out excess credits for exported energy, though any surplus will be credited to future bills.
The decision to introduce five-year contracts reflects growing concerns over the financial impact of net metering systems on non-solar consumers. A reduction in energy sales due to increased adoption of solar power has resulted in higher electricity tariffs for the general population.
With growing reliance on solar energy, Pakistani government is also introducing new standards for inverters, ensuring that all new net metering systems comply with updated technical specifications to ensure compatibility with grid operations and improve safety.
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