Under the proposed gross metering policy, electricity unit prices sold to the national grid would be halved, with rooftop solar panel owners selling their electricity units to the government at rates determined by the Central Power Purchasing Agency (CPPA). Discussions with the International Monetary Fund (IMF) regarding this policy have taken place.
Federal Minister for Energy Sardar Awais Ahmad Leghari has hinted at a potential revision of the solar net metering policy, expressing concerns over growing reliance on solar panels and resultant inflated electricity prices. However, he underscored the government’s commitment to fostering renewable energy while combatting power theft to ease financial pressures on the national treasury.
Differentiating between the two approaches:
1. Net Metering: This billing mechanism allows owners of solar panels or renewable energy systems to sell surplus electricity generated back to the grid. When the system generates more electricity than is consumed on-site, excess electricity flows into the grid, and the utility company credits the customer’s account. Net metering enables customers to reduce their electricity bills and promotes the uptake of renewable energy technologies.
2. Gross Metering: In contrast, gross metering measures and compensates for all electricity generated by a renewable energy system, regardless of whether it is consumed on-site or fed into the grid. Unlike net metering, where only surplus electricity is credited, customers under gross metering receive a fixed payment for each unit of electricity generated by their system. While gross metering offers a predictable income stream for renewable energy system owners, it may not provide the same financial advantages as net metering in terms of reducing electricity bills.
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