Pakistan is on the brink of a major energy policy overhaul as the federal government moves to eliminate net metering for solar panel users. A draft solar energy policy, now nearing completion, suggests a nationwide shift toward gross metering, which could significantly impact rooftop solar users’ earnings.
According to senior officials in the Power Division, this change is aimed at correcting imbalances in the national power grid and ensuring fair cost distribution among all electricity consumers.
The new framework sets the buyback price for solar-generated electricity at Rs11.33 per unit, a dramatic reduction from the Rs27 per unit currently offered under net metering. This means consumers who install solar panels in the future will receive far less compensation for the power they export to the grid.
Crucially, the new policy will not affect existing net metering contracts, providing some relief to current users who feared retroactive changes. Their agreements will continue under the previously agreed terms.
Sources familiar with the matter stated that the gross metering structure is part of a broader strategy to tie solar buyback rates to a fixed percentage of the overall electricity tariff—roughly one-third. This method would lock in lower rates for the foreseeable future, starting with the Rs11.33 figure.
The government’s rationale behind the transition stems from a reported Rs159 billion financial burden on the power sector due to the net metering regime, with Rs103 billion attributed to inflated purchase prices.
The National Electric Power Regulatory Authority (NEPRA) is expected to review the draft policy before it is forwarded to the federal cabinet. Once approved, gross metering will become the new standard for solar energy producers across Pakistan.
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