Prime Minister Shehbaz Sharif has once again stopped the government plan to change the solar net-metering policy, according to a report by Dawn. This is the third time he has done so, as per government sources.
The Power Division was trying to reduce the rate at which the government buys electricity from people using solar panels. But the public and civil society strongly opposed this move.
A senior official confirmed that the Prime Minister’s Office has clearly told the Power Division to end the campaign. The division had been preparing a new proposal and wanted to push a new narrative about the new buyback rate. The ministry was also planning to send this proposal to the federal cabinet.
Even though the plan has now been stopped, the use of hybrid solar systems has increased. These systems help users lower their bills but do not send power back to the grid. This is making the issue of extra unused power even worse.
In the past, the Economic Coordination Committee (ECC) had approved a plan to lower the buyback rate. However, the federal cabinet rejected it after it drew strong criticism from various groups.
On July 10, Power Minister Awais Leghari said that a new plan would be made and presented again. This time, it will include the views of all stakeholders. One of the suggestions in this plan is to increase the time for users to recover their investment in solar panels—from 1.5 years to about 2 to 3 years.
READ MORE: Govt to End Net Metering, Sets Rs.11.30 Buyback Rate
The Power Division had earlier proposed cutting the buyback rate from Rs27 per unit to Rs11.3 per unit. This was meant to match the rates paid to independent power producers (IPPs). They also suggested a new system to handle billing and payments for net-metering users.
As per official figures, there are around 325,000 net-metered users in Pakistan, including homes, businesses, and factories. Together, they produce about 6,500 megawatts of solar energy. The Power Division believes that many more connections are being set up, based on solar panel imports.
READ MORE: Govt Finalizes New Net Metering Policy to Cut Power Costs
Lahore has the highest number of net-metered connections, followed by Rawalpindi, Karachi, and other major cities.
The ongoing issues around solar net-metering have also become more complex because some provinces are giving subsidies for solar setups. This is adding more pressure to the already struggling power sector.
