ISLAMABAD: Pakistan recorded a sharp increase in net metering units in July 2025, according to NEPRA data compiled by Arif Habib Limited. The data showed a 124% year-on-year rise, reflecting a growing shift toward solar adoption across the country.
Households and businesses accelerated investment in solar systems due to higher power tariffs. They also responded to the expiry of temporary relief measures earlier this year. Consequently, solar-driven net metering continued to expand its role in Pakistan’s energy landscape.
Contribution to Power Generation
Net metering contributed 115 gigawatt-hours (GWh) during July. This figure raised its share in total generation by 47 basis points compared with the same month last year.
Although the share remains modest relative to total output, the increase highlights growing consumer reliance on distributed solar power. This shift also underscores the impact of cost pressures on energy choices.
Seasonal Decline in Output
On a month-on-month basis, however, net metering units fell 19%. This drop reflected seasonal variations in solar output, particularly during the monsoon season. Such fluctuations highlight the intermittent nature of solar energy production.
At the same time, overall electricity generation in July fell by 5.1% year-on-year. This decline emphasized broader structural challenges in the power sector.
Future Demand Outlook
NEPRA projects national power demand to grow by 2.8% in fiscal year 2025. This growth indicates Pakistan’s continued reliance on grid-based supply despite rising solar contributions.
Energy analysts believe net metering will keep gaining ground as consumers seek cost savings and energy independence. However, they caution that policy consistency and infrastructure upgrades remain crucial for long-term solar expansion.
Balancing Solar with Grid Stability
Experts stress that while net metering eases grid pressure, reliance on distributed solar requires careful management. Grid operators must prepare for voltage fluctuations, reverse flows, and seasonal imbalances.
Therefore, regulators and policymakers face a dual challenge: ensuring reliable grid supply while accommodating solar’s growing footprint.
