Islamabad, Mar 17, 2025: The federal government has officially revised solar net metering rates, introducing significant adjustments for rooftop solar panel users.
Under the updated policy, net metering consumers will now receive Rs 10 per unit for surplus electricity sold to the grid, down from the previous rate of Rs 27 per unit.
Federal Minister for Power, Sardar Owais Ahmed Khan Leghari, confirmed this development, emphasizing that the change aims to ensure a fairer tariff structure.
While solar users exporting energy to the grid will not be subject to any additional taxes, they will continue to pay an 18% sales tax on electricity drawn from the grid—consistent with other consumers.
Economic Coordination Committee’s Decision
The new net metering policy, approved by the Economic Coordination Committee (ECC), is designed to balance electricity tariffs while promoting solar energy adoption nationwide.
Government Saves Rs 1,400 Billion
Speaking in a television interview, Owais Leghari revealed that renegotiations with Independent Power Producers (IPPs) have led to a Rs 1,400 billion saving over the remaining duration of their agreements.
This translates into an annual reduction of Rs 400 billion, which is expected to lower electricity prices for consumers.
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Additionally, the minister highlighted that the government has cut the interest rate on power sector loans to 12%, further reducing energy costs.
Solar Panel Prices Drop in Pakistan (November Update)
Addressing concerns regarding the impact of the 18% sales tax, the federal minister clarified that the buyback rate for new solar consumers will range between Rs 9.5 and Rs 10 per unit, refuting rumors of a further decrease to Rs 8.88 per unit.
With the revised solar policy, the estimated payback period for rooftop solar installations is now around 3.5 to 4 years, assuming a 15% plant efficiency and an energy usage split of 25% solar power and 75% grid power.
Net Metering Profit Adjusted
Additionally, Leghari explained that the previous Rs 27 per unit buyback rate provided excessive profits to solar net metering users.
The adjusted rate of Rs 10 per unit ensures a more reasonable return while preventing increased financial pressure on non-solar consumers.
“The new rates help maintain a fair distribution of costs among all electricity users,” he stated.
Existing Solar Users Unaffected
However, the minister assured that the revised tariffs will not affect the 283,000 existing net metering consumers.
The government will honor their current agreements to maintain its credibility.
Solar Panel Prices Reduced
Following the policy revisions, solar panel prices in Pakistan have dropped by Rs 2 per watt.
As a result, the cost of installing solar systems has decreased by Rs 35,000 to Rs 175,000, making renewable energy more affordable for consumers.
Latest Solar System Prices (On-Grid):
- 5kW system – Rs 550,000
- 7kW system – Rs 625,000
- 10kW system – Rs 850,000
- 12kW system – Rs 978,000
- 15kW system – Rs 1,150,000
Hybrid solar systems, which incorporate battery storage, will incur additional expenses.
Off-Grid Solar Systems Unaffected
The minister clarified that off-grid solar solutions remain exempt from net metering policies.
Furthermore, Consumers who install solar panels with battery storage for residential, commercial, or agricultural purposes can continue without any government-imposed restrictions.
However, the latest adjustments in net metering rates, coupled with reduced solar panel costs, will likely encourage more consumers in Pakistan to adopt solar energy, making it a viable and cost-effective alternative.
