NEPRA Introduces Solar Tariff Cuts For 2016

With Pakistan slowly moving away from traditional sources of generating power and opting for several solar powered ventures, the National Electric Power Regulatory Authority (NEPRA) announced yesterday that it will be introducing a new upfront solar tariff.

The new tariff will range from:

  • 35 to 11.53 cents/kWh for the Northern region, which comprises of Punjab and KPK
  • 72 to 10.89 cents/kWh for the Southern region, which comprises of Sindh and Balochistan

The tariff will be applicable for solar power projects that will be generating power in the range of 1-100 MW.

Details about The Newest Tariff Cuts

As for when the tariff will begin; it will be applicable from January 1st 2016, and will remain valid for a period of six months. Previously, NEPRA made a move by reducing solar photovoltaic system’s prices, which was met with extreme criticism from investors. One reason why NEPRA may have been compelled to reduce the pricing of the tariff was due to the built-in degradation factor. The better quality of the equipment, the less amount of performance degradation.

During the previous upfront solar tariffs, the allowed annual degradation was 0.7 percent from year 2 to year 25. With better solar modules available in the market, their annual degradation has come down to 0.5. However, with better quality comes better pricing, which will increase the overall costs of the module and the entire setup. After looking at all the metrics and the available factors that will be coming into the playing field, NEPRA has approved 0.5 percent annual degradation from year 2 to 25.

Concluding Thoughts

Despite their higher costs, a high quality solar photovoltaic system will be capable of achieving a higher capacity utilization factor as compared to a low-quality solar PV system. This, in turn, will require less maintenance and less replacement costs to be incurred, and while the initial costs of procuring such equipment will obviously be higher, it will result in the reduction of other costs and will ensure a smooth flow of electricity that’s being generated.


  • Not clearly mentioned but I think this terrif is for buying solar energy by nepra.
    Doesn’t know what is 35 to 11.53 cents pet kWh????

    • This is price cut for the companies tariff who are running solar power plants and giving power to the National grid. Their per unit cost has been cut down by NEPRA who fixes tariff of units depending on what system they are using, thermal, hydro, or etc power plants . So this price cut is for solar power plants.

  • 131 shares??? Pochna to un se chahiye jinhon ne is useless article ko share kia hai….. Not clear.. No info…..

    NEPRA tariff for what? And what is “35 to 11.53 cents/kWh”??? 35 to 11 or 11 to 35 cents?

    And is this tariff to sell solar power back to grid? or it is a tariff that is applied to customers?

  • I found your entire discussion very informative about On Grid/ Mini Grid. In addition I would like to introduce our services as we are dealing with Solar Solutions and Micro Grid/ On Grid Solar System. We are sole Distributer of Fronius On-Grid Inverter in Pakistan which makes us individual. Fronius is an Austrian Brand and due to its best manufacturing design it is one of top 3 best Inverters in the world having special feature of Wifi connectivity, Online up gradation, high feeding voltage and Easy Installation with 5-12 years extendable warranty. Even you can install a fronius through your Smart Phone. Our work area also covered leather, tanneries, garments and manufacturing industries. It is one of our achievements that we have transformed more than 5000 system from WAPDA to PV solar system in all over Pakistan. Here are some benefits of PV Solar System
    (1). one time investment life time benefits.
    (2). It will decline your electricity bills upto 80%.
    (3). you will have your own mini power grid system.
    Contact Details:
    Engr. Mirza Mehran Baig
    Designation: Technical Sales Engineer
    Contact No. 042-36612136-7, 0331-7973733
    Mail: mehran.inverex@gmail.com
    Address: INVEREX Power Solutions
    Main Bouleward Road DHA, Defense Shopping Mall, Lahore.


  • Get Alerts

    Follow ProPakistani to get latest news and updates.


    ProPakistani Community

    Join the groups below to get latest news and updates.



    >