Solar Net Metering Regulations Revised
The revised solar net metering regulations are expected to alleviate the financial burden on grid consumers, while promoting the growth of off-grid solutions. With the number of solar net-metering consumers on the rise, the government's decision to revise the net metering regulations is seen as a step towards a more sustainable energy future.
The Economic Coordination Committee (ECC) has approved amendments to net metering regulations, setting the electricity purchase rate at Rs10 per unit, aiming to reduce the financial burden on grid consumers. Existing net metering consumers will continue under previous agreements, while billing for imported and exported units will be separated.
The decision was made in a meeting chaired by Finance Minister Muhammad Aurangzeb, where the committee also approved the export of potassium sulphate fertilizer from Gwadar Port, allocated funds for the repair of the interior Ministry's helicopter, and sanctioned funds for the Sustainable Development Goals (SDG) programme. The government has reduced the buyback rate for net-metering electricity from Rs27 to Rs10 per unit, citing the significant increase in the number of solar net-metering consumers, which has led to a financial burden on grid consumers, reaching Rs159 billion.
The revised framework will not apply to existing net-metered consumers until the expiration of their license or agreement, ensuring their rights and obligations remain unaffected. The ECC also approved an update to the settlement mechanism, treating imported and exported units separately for billing purposes. The number of solar net-metering consumers surged to 283,000 by December 2024, up from 226,440 in October 2024, with a total installed capacity of 4,124 MW.
The government has authorized the Power Division to issue guidelines for incorporation into the applicable regulatory framework. The reduction in the buyback tariff to Rs10 per unit, down from Rs26/unit, aims to encourage consumers to shift to off-grid solutions, as discussed with the International Monetary Fund (IMF) in a recent meeting.
