Net Metering Reforms: Government Tightens Regulations
The proposed changes to the net metering policy have sparked controversy, with experts warning of increased costs for consumers and a rise in lithium battery imports. The government's energy reforms aim to create a more sustainable and transparent model, but the impact on consumers and businesses remains to be seen.
The government has decided to introduce reforms to the net metering policy, sparking controversy among stakeholders, with plans to abolish the zero-bill facility and reduce the sanctioned load, forcing consumers to switch to hybrid solar systems with lithium batteries.
The new plan aims to reduce the buyback rate for solar meter owners from Rs27 per unit to Rs10 per unit, which experts believe will lead to an additional expenditure of $1 billion on lithium battery imports every year. The Power Division has proposed measures to reduce the sanctioned load from 1.5x to 1.0x, citing the need for a more effective and sustainable model. Energy Minister Awais Ahmad Khan Leghari has denied that the government is abolishing the net metering policy, stating that the changes are aimed at creating a more transparent and sustainable model.
The reforms are part of the government's ongoing energy reforms, which include eliminating 9,000 megawatts of expensive and unnecessary projects and imposing a levy on captive power consumers to bring them back to the grid. The government plans to introduce energy reforms, including selling 7,000MW of surplus electricity to agriculture and industry at 7-7.5 cents per unit, in an effort to balance supply and demand. The reforms also include retaining net metering for solar energy users and introducing a more transparent net billing system.
The consultation process is ongoing, and various proposals remain under consideration, with a summary on the matter to be presented to the federal cabinet for approval after the budget. The government has clarified that no final decision has been made on changes to the net metering policy, despite reports suggesting a reduction in the buyback rate for net metering consumers.