ISLAMABAD: Pakistan’s Economic Coordination Committee (ECC) on Thursday revised the buyback rate for solar net-metering electricity from Rs27 per unit to Rs10 per unit, saying the move was intended to ease the burden on grid consumers.
The net-metering policy approved in 2017 allows homeowners and businesses to generate electricity using solar panels and export any excess to the national grid. In Pakistan, it is a billing system where consumers receive credits or monetary compensation for the surplus electricity they send to the grid.
Pakistan’s energy ministry said in April 2024 that the subsidy burden due to the net-metering policy is being shared by the government, domestic and industrial electricity consumers for other affluent consumers who are capable of generating power from solar panels.
The ECC met under Finance Minister Muhammad Aurangzeb to approve a set of amendments to the existing net-metering regulations, a press release from the Finance Division said.
“As part of the approved changes, the ECC has revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs 10 per unit,” the Finance Division said.
“Furthermore, the committee allowed the National Electric Power Regulatory Authority (NEPRA) to revise this buyback rate periodically, ensuring that the framework remains flexible and aligned with evolving market conditions.”
It added that the new framework would not apply to existing net-metered consumers who have a valid license, concurrence or agreement under the National Electric Power Regulatory Authority (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015.
“Any such agreements will remain effective until the expiration of the license or agreement, whichever occurs first,” it said, ensuring the rights and obligations of these consumers, including agreed-upon rates, will continue as per existing terms.
The statement said the ECC also approved an updated settlement mechanism, under which exported electricity units would be purchased at the new buyback rate of Rs10 per unit, while imported units would be billed at the applicable peak and off-peak rates, inclusive of taxes and surcharges.
The ECC said that these amendments were made after a record decline in solar panel prices that led to a sharp increase in the number of solar net-metering consumers.
“As of December 2024, solar net-metering consumers had transferred a burden of Rs 159 billion to grid consumers,” it said.
The statement also highlighted the need for regulatory reforms to ensure balance in the energy distribution system, noting that 80 percent of net-metering consumers are concentrated in nine major cities.
Pakistan has ideal climatic conditions for solar power generation, with most areas receiving over nine hours of sunlight daily. According to the World Bank, using just 0.071 percent of the country’s land for solar photovoltaic (solar PV) power could meet its electricity demand.
With a population of 241 million, Pakistan aims to transition to 60 percent renewable energy by 2030 and reduce projected emissions by 50 percent. Despite recent growth in solar power adoption, the country is still far from achieving these goals.
