Islamabad, May 14, 2025: In a move that could reshape Pakistan’s solar energy landscape, the Power Division is gearing up to resubmit a proposal to the ECC aimed at slashing net-metering buyback rates and limiting contract terms—raising concerns among solar users and energy experts alike.
The Cabinet Division has officially cleared the way for the Power Division to resubmit its amended Net-Metering Regulations to the Economic Coordination Committee (ECC).
The original proposal, approved by the ECC on March 13, 2025, was held back by the Federal Cabinet for further consultations. With consultations now complete, the resubmission process is back on track.
The revised proposal includes two major reforms:
- Buyback rate reduction from Rs 27 to Rs 10 per unit
- Limiting net-metering contracts to a five-year term
These changes aim to curb what the government sees as a growing imbalance in the power sector.
The Power Division estimates that net-metering led to a 3.2 billion kWh drop in grid energy sales in FY24, translating to a Rs 101 billion financial hit and a Rs 0.9/kWh hike in tariffs for non-solar consumers.
Looking ahead, projections for FY34 suggest even starker consequences. With 18.8 billion kWh in potential reductions, the burden could skyrocket to Rs 545 billion, pushing average electricity tariffs up by Rs 3.6/kWh.
The latest IGCEP 2025 also forecasts 8,000 MW of net-metering capacity additions by that year, which officials warn could undermine least-cost generation planning.
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In parallel, the Power Division is also taking steps to better understand the scope of solar adoption.
It has partnered with the World Bank for a national rooftop solar potential assessment under the Electricity Distribution and Efficiency Improvement Project (EDEIP)—a move seen as crucial for long-term energy policy.
