Net metering’s demise? A serious setback for Pakistani solar panel users
As the Power Division completes a new solar policy intended to transform the nation’s renewable energy landscape, the federal government is prepared to do away with the net metering system for solar energy users.
According to Power Division sources, the new solar energy policy is nearing completion, and plans to switch from net metering to gross metering have already been draughted.
After the National Electric Power Regulatory Authority (NEPRA) gives its approval, the draft policy is anticipated to be sent to the federal cabinet for approval.
The proposed framework states that the government intends to switch from net metering to gross metering and establish a buyback rate of Rs11.33 per unit for solar-generated electricity that is returned to the national grid.
The change won’t impact solar users who are already enrolled in the current net metering system, though, and they will still be able to sell electricity at the current rate of Rs27 per unit.
The policy also includes a mechanism to tie future solar buyback rates to a third of the current electricity tariff, according to sources. This means that the Rs11.33 rate will serve as the baseline in the new system. Under the updated policy, the government hopes to incorporate up to 8,500 megawatts of solar-generated electricity into the national grid.
Power Division officials contend that other electricity users now face an unmanageable financial burden from the net metering system, which is estimated to be Rs159 billion.
The cost difference resulting from higher purchase rates under net metering is responsible for Rs103 billion of this. According to the Power Division, switching to gross metering will improve system balance and lead to more equitable cost sharing.
