ISLAMABAD: Pakistan’s power minister has ordered electricity distribution companies to process all rooftop solar net-metering applications submitted before Feb. 8 under the previous, more favorable rules, according to a government statement released Thursday.
The decision comes after days of public criticism over new regulations that lowered the rate paid to solar users for surplus electricity, part of broader reforms aimed at easing financial pressure on loss-making power utilities.
The directive by Power Minister Sardar Awais Leghari applies nationwide, including the private utility K-Electric, and affects thousands of households and businesses awaiting approval to connect solar systems to the national grid.
“All electricity distribution companies, including K-Electric, will provide the net-metering facility for applications submitted up to February 8,” the ministry said in the statement, adding immediate implementation orders had been issued.
Authorities said 5,165 pending applications fall under the decision, adding about 250.822 megawatts of capacity to the national grid. The ministry said the move would remove uncertainty for consumers and directed companies to maintain transparency in processing requests.
Pakistan introduced grid-connected rooftop solar and net-metering in 2015 during a worsening power shortage, allowing consumers to sell excess electricity to the grid at the same tariff they paid utilities, a policy designed to encourage renewable adoption and reduce outages.
Over the past three years, soaring electricity prices and frequent blackouts triggered a rapid solar boom, with households and businesses installing panels to cut costs. Solar’s share of the energy mix rose sharply and tens of thousands of new connections were added annually.
Earlier this month, however, regulators replaced the net-metering regime with a net-billing framework separating purchase and sale prices, meaning consumers would receive a lower, market-linked rate for exported electricity while paying full tariffs for grid power.
Officials argued the change was necessary because widespread rooftop generation was reducing utility revenues and worsening the country’s circular debt crisis. Consumers and industry groups criticized the move, saying it undermined investment certainty.
The government has since moved to protect existing users and now pending applicants from the revised pricing mechanism, while new connections after the cutoff date will fall under the updated billing system.
