ISLAMABAD – The federal cabinet has halted the implementation of the Solar Net Metering Regulations to drop the buyback rate to Rs10 per unit, a proposal which drew widespread condemnation.
Prime Minister Shehbaz Sharif chaired the cabinet meeting where it was decided to widen the scope of consultation on the approved Solar Net Metering Regulations by Economic Coordination Committee.
He has directed for re-submitting the recommendations after seeking further feedback from all stakeholders.
The decision has brought a sigh of relief for those who have installed solar setups.
Earlier, the Economic Coordination Committee (ECC) had decided to lower the purchase price of electricity under net metering. It had recommended decreasing the buyback rate to Rs10 per unit instead of Rs 27.
According to the Finance Ministry, the decision was taken keeping in view the current market conditions.
ECC had also stated that new solar users will receive electricity from the national grid at off-peak rates.
They noted that solar power has impacted efforts to reduce grid electricity prices, with 80% of solar users belonging to nine major cities.
A briefing to the ECC revealed that by December 2024, solar users shifted a burden of Rs 159 billion onto grid consumers — a figure projected to rise to Rs 4,240 billion by December 2034.
The number of solar consumers reached 283,000 in December 2024, up from 226,440 in October, while solar power generation increased to 4,321 MW in December 2024 from 321 MW in 2021.
