Nepra Plans Major Cut in Solar Net Metering Buyback Rate
The National Electric Power Regulatory Authority (Nepra) plans a major revision in Pakistan’s solar net metering policy. Officials revealed that the authority may lower the buyback rate for surplus electricity from Rs23 to Rs10 per unit. This move aims to address growing financial pressure on the power sector.
Why Nepra Is Considering This Change
The Power Division shared that rapid growth in rooftop solar systems has reduced grid demand. As a result, power companies face revenue losses of over Rs100 billion in the last fiscal year. Officials said that solar producers have already received about Rs125 billion in payments. Therefore, the government believes the current policy is not sustainable.
In addition, falling grid sales caused a Rs1 per unit tariff hike for regular users. The Power Division warned that the revenue gap could increase in the next decade. They also worry that rising solar adoption could disrupt payments to Independent Power Producers (IPPs).
What the Government Plans Next
Prime Minister Shehbaz Sharif stepped in on October 22. He directed Nepra and the Power Division to reassess the buyback tariff carefully. The government may even remove the buyback option entirely. If that happens, solar users would need to consume all the energy they produce.
However, experts believe this policy change could slow down solar adoption. Many consumers might delay or cancel new installations. Therefore, policymakers need a balanced plan that supports both affordability and clean energy growth in Pakistan.
