Cabinet halts implementation of revised net metering policy after backlash

The federal government has decided to temporarily suspend the implementation of recently approved amendments to Pakistan’s solar net-metering regulations. This decision has prompted the Power Division to consult a wider range of stakeholders before presenting a revised policy to the Cabinet for approval.

Earlier, on March 13, the government introduced changes aimed at limiting renewable energy growth through solar net metering, in response to high grid electricity costs. These amendments included reducing the solar buyback rate by two-thirds to Rs10 per unit and discontinuing net billing.

The revisions, applicable to new net-metering consumers, were finalized during an ECC meeting chaired by Finance Minister Muhammad Aurangzeb.

nder the updated policy, power companies would buy surplus solar energy at Rs10 per unit during daytime, while grid electricity prices would remain significantly higher—Rs42 per unit during off-peak hours and Rs48 per unit during peak hours after sunset—excluding taxes and duties.

The policy also introduced restrictions on solar capacity installation, allowing consumers to install systems no larger than their sanctioned load, with only a 10 percent margin, compared to the previous allowance of 50 percent. Existing consumers would transition to this framework upon the expiration of their seven-year contracts.

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This announcement sparked widespread criticism, particularly from the business community, which urged the government to consult with all relevant stakeholders, including industry representatives and traders. They emphasized the need for a balanced energy policy that promotes renewable energy while protecting the interests of all electricity users.