Govt slashes solar net metering rates to Rs 10 per unit

In a setback for solar net metering users, the government has approved the purchase of excess electricity from solar users at Rs 10 per unit, significantly reducing the rate previously offered.

The decision, confirmed by the Ministry of Finance, was taken during a meeting of the Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb.

Separate rates for buying and selling power

The new policy introduces separate rates for the purchase and sale of electricity from solar net metering consumers.

This effectively means that solar users will pay a higher tariff when consuming electricity from the grid, while receiving a lower price for the surplus power they send back.

However, the Ministry of Finance clarified that the revised rates will not apply to licensed solar energy producers who operate under specific agreements. The National Electric Power Regulatory Authority (NEPRA) has been authorized to implement the new pricing structure, following the ECC's approval.

Impact on solar energy consumers

This move is expected to discourage small-scale solar consumers, many of whom installed solar panels with the expectation of selling excess electricity at competitive rates.

The decision comes amid concerns about rising electricity prices and energy sector deficits, with the government seeking to control financial losses in the power sector.

Industry experts and solar users have expressed frustration over the decision, warning that it could slow down Pakistan’s transition to renewable energy.

The move is likely to spark debate among stakeholders, with many urging the government to reconsider policies that could hamper solar adoption in the country.

Reporter: Waqas Azeem