Solar Users Could Earn Higher Rates During Evening Demand
Pakistan is considering a new electricity pricing model that could reward solar battery owners for supplying stored power to the national grid during evening peak hours.
Power Division Adviser Syed Faizan Ali has proposed a Time-of-Use net-metering and net-billing system. Under the plan, electricity released from batteries between 5:00 pm and 10:00 pm could receive an enhanced rate of Rs18 to Rs22 per kilowatt-hour.
The proposal has not yet been announced as an approved government policy. No implementation date has been confirmed.
The suggested mechanism aims to encourage solar users to charge their batteries during daylight hours. They could then export the stored electricity after sunset, when national demand rises and solar generation declines.
Pakistan’s evening peak electricity demand has crossed 26,000 megawatts. Power system operators often rely on more expensive generation sources to meet demand during these hours.
Using privately owned batteries could reduce pressure on conventional power plants. It could also help distribution companies manage sudden changes in electricity demand.
The payment would provide a financial incentive for households, businesses and other solar users to remain connected to the grid.
Many solar consumers currently use stored electricity only for their own needs. Under the proposed system, their batteries could also become a source of electricity for the wider network.
The model would effectively transform solar consumers into active grid participants. They could store low-cost daytime solar power and sell it when electricity becomes more valuable.
Pakistan’s Battery Market Records Rapid Expansion
The proposal has emerged as Pakistan experiences extraordinary growth in battery storage imports.
The country imported 6.004 gigawatt-hours of lithium-ion batteries between January 2024 and June 2026.
The imported batteries were valued at approximately Rs126 billion, or $454.7 million.
Monthly imports increased from 42 megawatt-hours in January 2024 to a record 652.2 megawatt-hours in April 2026. This represented growth of around 1,640 percent.
Average monthly battery imports reached 413 megawatt-hours during the first six months of 2026. This was more than six times the average recorded during 2024.
Pakistan’s annualised battery import rate has now crossed five gigawatt-hours.
The figures show that the country’s solar market is moving beyond systems designed only to generate and export electricity during daylight hours.
Consumers are increasingly installing hybrid solar systems with lithium-ion batteries. These systems allow users to store excess solar energy and consume it after sunset.
Commercial users are also increasing their reliance on batteries. Telecom companies are replacing older backup systems with lithium iron phosphate technology.
Large commercial and utility-scale storage projects are expanding as well.
Containerised battery systems with capacities of one megawatt-hour or more accounted for over 252 megawatt-hours across 19 installations, according to the market analysis behind the proposal.
Residential battery systems remain an important part of the market. However, demand is also rising for larger rack-mounted systems used by businesses and industrial consumers.
Several factors are driving this transition.
Electricity tariffs remain high. Consumers also face concerns about supply reliability and growing fixed charges.
Falling battery prices have made storage systems more accessible to households and businesses with sufficient investment capacity.
Changes to Pakistan’s solar billing rules have also encouraged consumers to store more electricity instead of exporting it to the grid during the day.
New Model Could Address Weaknesses in Flat Solar Tariffs
Pakistan replaced its earlier net-metering framework with a net-billing system in February 2026.
Under net metering, exported solar electricity was previously valued at a rate close to the retail price paid by consumers.
Under the revised system, imported and exported electricity are calculated separately.
Solar users pay the applicable retail tariff for power taken from the grid. They receive a lower rate for electricity exported to distribution companies.
The export rate was reduced from around Rs26 per unit to approximately Rs11 per unit.
The change was introduced to reduce financial pressure on electricity distribution companies and limit the transfer of grid costs to consumers without solar installations.
However, the current structure applies a largely flat value to exported electricity.
That means power supplied at midday can receive the same rate as electricity released during the evening peak, even though the value of electricity to the grid changes throughout the day.
Daytime solar production is already reducing demand from the national system. Demand then rises sharply after sunset as solar generation disappears.
A Time-of-Use tariff would attempt to solve this problem by paying more for electricity when the grid needs it most.
The proposed Rs18 to Rs22 rate would encourage battery owners to delay exports until the evening.
It could help reduce peak-hour procurement costs, improve demand management and make better use of privately financed battery capacity.
The model could also discourage complete grid departure.
Lower export payments and rising fixed charges may encourage wealthier households and commercial users to build larger off-grid systems.
If more high-paying consumers reduce or end their dependence on distribution companies, utilities could be forced to recover their fixed costs from a smaller customer base.
That could place additional pressure on households that cannot afford solar panels or batteries.
A stronger evening export rate could give battery owners a reason to remain connected and support the national system.
Safety and Grid Regulations Remain Major Challenges
Pakistan’s battery market is expanding faster than its regulatory structure.
The country currently lacks comprehensive rules for connecting distributed battery systems to the national electricity network.
Clear technical standards are needed to ensure that batteries, inverters and protection equipment can safely interact with distribution systems.
Authorities would also need a national registration mechanism to identify battery locations, capacities and operating characteristics.
Such information would help electricity companies forecast demand and determine how much stored power could be available during peak hours.
Without reliable data, system operators may struggle to depend on privately owned batteries during periods of high demand.
Consumer safety is another major concern.
Low-quality batteries can create fire, overheating and electrical risks. A national framework would need to establish recognised product and installation standards.
The market report recommended mandatory safety requirements, grid connection rules and a national battery registry.
It also called for rules covering the recycling and disposal of batteries after they reach the end of their operating lives.
Large numbers of ageing lithium-ion batteries could create environmental and public safety problems without a proper waste management system.
The proposed Time-of-Use mechanism would also require accurate metering.
Distribution companies would need to record when electricity was exported, not only how many units were supplied.
The final tariff would require regulatory approval and clear rules on eligibility, billing, battery registration and grid connection.
Officials would also need to determine whether the higher rate would apply to existing solar users, new consumers or both.
No final decision has been announced on these questions.
The proposal nevertheless represents an important change in Pakistan’s energy debate.
Rather than treating household batteries only as private backup systems, policymakers are beginning to view them as potential national energy assets.
A carefully regulated payment model could help Pakistan reduce evening shortages and expensive peak generation.
However, weak regulation could create safety risks, inaccurate billing and additional pressure on the power network.
The success of the plan will depend on whether authorities can introduce fair tariffs, reliable metering and strong technical standards before battery adoption expands further.
