The government is planning to reduce the buyback tariff for electricity generated through rooftop solar panels to Rs7.5-11 per unit, significantly down from the current Rs21 per unit, according to a senior Energy Ministry official.
This proposed adjustment comes amid a sharp decline in solar panel prices and growing concerns over grid electricity underutilization. Under the current net metering system, two units of rooftop solar electricity are equivalent to one grid unit.
However, with the new proposal, six solar units will equate to one grid unit. Solar consumers would also pay Rs60 per unit for grid electricity during night-time or peak hours, a notable increase from the existing Rs42 per unit.
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The shift aims to discourage excessive solar panel installations, which are said to exacerbate capacity payment challenges for the national grid. The International Monetary Fund (IMF) has expressed concerns over the declining demand for grid electricity, urging the government to promote its usage.
A recent study, The Great Solar Rush in Pakistan, reveals that the country imported around 15GW of solar panels worth $2.1 billion from China last year. Surging electricity tariffs—up 155% over three years—have driven households and industries to adopt solar energy.
The government is also considering introducing gross metering, which compensates consumers at a fixed tariff for total solar energy exported to the grid. Nepra, meanwhile, is addressing complaints of delays in net metering applications by distribution companies.
