Islamabad, Mar 10, 2025: Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, announced that a new solar panel policy will be presented to the Economic Coordination Committee (ECC) for approval.
As per the proposed plan, the national grid will procure electricity from newly installed rooftop solar panel at a rate of Rs. 9.50 to Rs. 10 per unit.
However, this initiative aims to help consumers recover their investment in solar panels within four to five years, making it a cost-effective choice for households and businesses alike.
During an appearance on Geo News, the minister assured that the government would uphold existing agreements for rooftop solar systems that are currently supplying electricity to the grid at Rs. 27 per unit.
However, he cautioned that if the current structure remains unchanged, the rising impact of net metering could place an additional financial strain of Rs. 600 billion per year on consumers, leading to a potential increase in electricity rates by Rs. 5-6 per unit.
Leghari explained that of the Rs. 2,400 billion circular debt, payments owed to government-owned power plants will be exempt from interest.
Additionally, the government has renegotiated agreements with independent power producers (IPPs), securing a waiver of Rs. 460 billion in late payment surcharges.
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Further financial relief is anticipated as discussions with more IPPs continue.
To manage the circular debt, the government is working with commercial banks to secure a Rs. 1,200 billion loan, which will be repaid over five to six years through the existing Rs. 2.83 per unit electricity surcharge.
However, the minister assured that no new surcharge would be introduced for this repayment.
He also revealed that the government has already secured a relief of Rs. 3.50 per unit through revised contracts with IPPs, with further reductions expected as negotiations continue.
Furthermore, the International Monetary Fund (IMF) has not raised any objections to the proposed tax cuts on electricity and has expressed confidence in the government’s ongoing efforts to reform the power sector.
