Recently, the Economic Coordination Committee (ECC) of Pakistan announced a significant decision to drastically reduce the buyback price for solar net metering power from 27 rupees per unit to 10 rupees per unit.
Since the implementation of the solar net metering policy in Pakistan in 2017, the policy has greatly promoted the adoption of solar power generation. Households and businesses that install solar panels can not only meet their own electricity needs but also feed excess power back into the national grid, receiving credits or monetary compensation in return. This policy has attracted many individuals who can afford the cost of installing solar panels to invest in solar power generation, achieving electricity bill reductions and additional income.
Over time, however, the drawbacks of the solar net metering policy have become apparent. The Ministry of Energy of Pakistan pointed out that the subsidy burden brought by the policy is being shared by the government, ordinary electricity consumers, and industrial electricity users, while the subsidies are mainly enjoyed by high-income groups with solar power generation capabilities. This unfair subsidy model has increased electricity costs for ordinary users and placed enormous pressure on the national finances. Furthermore, the large number of new net metering users has significantly increased the operational burden on the grid. Data shows that as of December 2024, solar net metering users have imposed an additional burden of up to 159 billion rupees on grid users.
At a meeting chaired by Finance Minister Muhammad Aurangzeb, the ECC approved a series of amendments to the existing net metering regulations. In this adjustment, the buyback price has been uniformly reduced from the National Average Power Purchase Price (NAPP) to 10 rupees per unit, and the National Electric Power Regulatory Authority (NEPRA) has been authorized to dynamically adjust the buyback price on a regular basis to adapt to the changing market environment and ensure the stable operation of the electricity market. At the same time, the new policy framework clarifies that it will not affect the rights and interests of existing net metering users, provided that they hold valid licenses, consents, or agreements, their rights and interests will be fully protected.
In addition, the ECC has also approved a new settlement mechanism, where the electricity fed into the grid will be purchased at the new buyback price of 10 rupees per unit, while the electricity consumed from the grid will be billed according to the applicable peak and off-peak electricity prices, making the electricity billing more reasonable.
