The net metering rumours have finally been addressed by a government official. According to official sources, the government is planning to end net metering in Pakistan. The paperwork has almost been completed and will be sent to the Cabinet Office for formal approval.
The latest renewable energy draft suggests replacing net metering with gross metering to ease the electricity price burden on other consumers.
If the current proposal gets approval from the government, solar users will have to sell all the electricity produced by their solar panels at a much lower fixed rate of around 11.33 RS. almost 3 times lower than the previous rate of 27 R.s per unit.
Various questions are popping up in solar panel consumers’ minds, creating uncertainty and confusion. Though answering all of them could be premature until the government officially announces the new net metering policy in Pakistan.
Still you need to know a lot of things before the bill officially passes.
The discussion over reducing the net metering rate or ending it entirely isn’t new. Even last year, the power minister had to issue a clarification stating that the government wasn’t planning to end net metering policies anytime soon.
However, one thing is now clear: net metering will be replaced with gross metering, and the rate will be 60% lower than the previous rates.
Solar panel users who are already selling excess electricity to the grid under the current net metering policy will continue receiving 27 Rs for every unit sold.
With net metering, you have the authority to consume the solar-produced electricity first for your own use and then sell the excess electricity to the grid.
However, in gross metering, the process completely changes. It requires you to sell all the electricity produced by your solar panels directly to the grid at a lower rate about one third of the usual rate and then purchase electricity from the grid at much higher rates.
For better understanding, we’ve broken down both in a simple way.
Officials from the Power Division continuously stress that the current net metering policy has placed an unsustainable financial burden of almost 159 billion on other electricity consumers.
Another report suggests that 103 billion out of this 159 billion is due to the higher purchase rates under the net metering policy.
The government argues that the new gross metering policy will help balance the system and create more equitable cost sharing (Source: SAMA News).
The federal government is indeed moving to end solar net metering, with the Power Division having finalized a new policy and the ECC already approving amendments.
The proposed buyback rate under Gross Metering is around Rs. 10-11.33 per unit, significantly lower than the current Net Metering rate of approximately Rs. 27 per unit.
Existing net metering consumers with valid licenses/agreements will reportedly remain under their current rates and terms until their licenses or agreements expire.
No official date announced yet, but approval is expected within months.
For 7 years as per their existing agreement terms.
The government cites an “unsustainable financial burden” of approximately Rs. 159 billion (Rs. 103 billion from higher purchase rates) on other electricity consumers due to the current net metering system.
The significantly lower buyback rate under Gross Metering will substantially prolong the ROI period for new solar installations, potentially from 3-4 years to 10-12 years.
At SolarTalks, we are dedicated to making solar energy accessible to all. As the only platform in Pakistan offering free consultations, unbiased product and company reviews, and expert insights, we help you make informed decisions about your solar journey.
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