ISLAMABAD: The federal government is preparing to abolish the existing net metering system for solar energy users, as the Power Division finalizes a comprehensive new policy aimed at reshaping Pakistan’s renewable energy framework.
According to sources within the division, the new solar energy policy is in its final stages, and a proposal for implementing gross metering has been drafted. The policy will be forwarded to the federal cabinet for approval once it secures a green light from the National Electric Power Regulatory Authority (NEPRA).
Under the proposed plan, gross metering would replace net metering, with a buyback rate of Rs11.33 per unit for solar electricity supplied to the national grid. In contrast to net metering, which offsets solar production against a consumer’s usage, gross metering will pay users a fixed rate for all electricity exported to the grid, regardless of their consumption.
Net Metering and the current users
Importantly, current users enrolled in net metering will not be affected and will continue receiving the existing Rs27 per unit rate under their agreements.
The policy also introduces a mechanism that would link future solar buyback rates to one-third of the prevailing national electricity tariff, establishing Rs11.33 as a baseline rate for the revised system. The government aims to integrate up to 8,500 megawatts of solar energy into the national grid through this revamped structure.
Officials argue that the net metering system has become financially unsustainable, placing an estimated Rs159 billion burden on non-solar electricity consumers. Of that amount, Rs103 billion stems from the cost differential caused by the higher per-unit purchase rate under net metering.
The Power Division believes that transitioning to gross metering will alleviate this financial imbalance and promote a more equitable distribution of energy costs among all electricity consumers.
Solar panels prices decline
In a positive turn of events for Hyderabad residents, solar panel prices have seen a significant drop after the government introduced its revised net metering policy. This new policy allows residential solar users to sell excess electricity, making solar energy an even more attractive option.
The move has sparked increased interest in solar power, especially with the ongoing power outages and rising temperatures. Retailers across the city are reporting a steep decline in prices for high-quality 585-watt A-grade solar panels, which have fallen from Rs 22,000 to Rs 16,500—a notable decrease that’s already driving consumer demand.
“A lot of people are looking to install solar systems now, especially with the heat and the new policy in place,” said a local shopkeeper. “For those on a tight budget, they can now get a complete solar setup for just Rs 20,000 to Rs 22,000 to power a fan and a couple of lights.”
This price reduction is particularly timely, as Hyderabad is experiencing frequent, unscheduled load shedding by the Hyderabad Electric Supply Company (HESCO), making alternative power sources more appealing to residents.
“Summers are harsher than ever due to climate change, and HESCO’s load shedding is making it harder to cope,” shared a local resident. “Solar power is a lifesaver—it helps us stay cool and keep the lights on.”
Experts in the solar industry predict that prices could continue to drop, making solar energy an increasingly viable option for middle- and lower-income households.
