The Pakistani government is targeting a significant reduction in the rates paid to consumers who generate solar power through net metering.
Consequently, Pakistan’s Power Division is working on amendments to achieve this reduction. These proposed changes, set to be submitted to the National Electric Power Regulatory Authority (NEPRA) in July, include directing net metering power to the national grid and introducing capacity charges for net metering users.
One major change under consideration is a 50% decrease in the net metering buyback rate. This reduction would extend the payback period for solar power investments from the current three years to seven years.
According to reports, this adjustment is crucial for maintaining financial stability in the energy sector. The National Grid’s net metering share currently stands at 2000 MW, with the number of solar consumers having surged from 55,000 to 120,000 over the past year.
The shift of large users from the traditional grid to net metering has imposed an additional cost of Rs 2 per unit on other consumers. If the current rate persists, this issue is expected to escalate, potentially increasing costs by up to Rs 350 billion in the coming year.
The Power Division aims to alleviate this financial burden on a broader base of consumers by adjusting the net metering rate.
