ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday ordered a review of new rooftop solar regulations issued by the power regulator, directing authorities to protect existing consumer contracts while ensuring the policy does not shift financial burden onto non-solar electricity users.

The move follows recent changes by the National Electric Power Regulatory Authority (NEPRA) that altered compensation rules for surplus electricity generated by rooftop solar users, part of broader power sector reforms aimed at easing pressure on state-run utilities.

Pakistan has been restructuring its energy sector under an International Monetary Fund-backed reform program to contain mounting circular debt and rationalize subsidies. Rapid growth in rooftop solar installations has reduced grid demand but also strained distribution companies’ revenues, prompting regulatory adjustments.

“The Power Division should immediately file a review petition before NEPRA to ensure maximum protection of existing contracts of solar consumers,” the prime minister instructed, according to a statement issued by his office.

He further instructed authorities to formulate a comprehensive plan to ensure that the cost burden of 466,000 solar beneficiaries does not fall on more than 37.6 million consumers who rely solely on the national grid.

Solar power grew from 4 percent of the energy mix in 2021 to over 14 percent–25 percent in 2024-2025, official figures show.

Driven by skyrocketing grid tariffs, Pakistan became one of the world’s top new solar adopters, importing roughly 22 gigawatts (GW) of solar panels in 2024 alone.

Industry data shows tens of thousands of new solar connections have been added annually, significantly reducing demand from the grid during daylight hours.

However, NEPRA’s new compensation rules have been designed so that consumers continue to pay full tariffs for electricity drawn from the grid while receiving a lower, market-linked rate for excess power they export.