The Economic Coordination Committee (ECC) of the Cabinet, under the chairmanship of Finance Minister Senator Muhammad Aurangzeb, met today and approved a set of amendments to the existing net-metering regulations aimed at reducing the growing financial burden on grid consumers.
The decision comes in light of a significant increase in the number of solar net-metering consumers, with associated financial implications for grid consumers.
As part of the approved changes, the ECC has revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs. 10 per unit. Furthermore, the committee allowed the National Electric Power Regulatory Authority (NEPRA) to revise this buyback rate periodically, ensuring that the framework remains flexible and aligned with evolving market conditions.
It was clarified, however, that the revised framework will not apply to existing net-metered consumers who have a valid license, concurrence, or agreement under the NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015.
Any such agreements will remain effective until the expiration of the license or agreement, whichever occurs first. This ensures that the rights and obligations of these consumers, including agreed-upon rates, will continue as per the existing terms.
Update to settlement mechanism
Additionally, the ECC also approved an update to the settlement mechanism. Under the new structure, imported and exported units will be treated separately for billing purposes. The exported units will be purchased at the revised buyback rate of Rs 10 per unit, while the imported units will be billed at the applicable peak/off-peak rates, inclusive of taxes and surcharges, during the monthly billing cycle.
The ECC also authorized the Power Division to issue proposed guidelines, subject to Cabinet’s ratification, to NEPRA for incorporation into the applicable regulatory framework, ensuring clarity and consistency in the implementation of these amendments. The decision follows extensive discussions on the growing impact of solar net-metering on the national power grid.
The Power Division highlighted the pressing need for regulatory adjustments, citing a record decline in solar panel prices that has led to a sharp increase in the number of solar net-metering consumers. As of December 2024, solar net-metering consumers had transferred a burden of Rs. 159 billion to grid consumers, a figure expected to rise to Rs. 4,240 billion by 2034 without timely amendments.
Net-metering consumers hit 283,000
The ECC was informed that the number of solar net-metering consumers surged significantly, reaching 283,000 by December 2024, up from 226,440 in October 2024. The total installed capacity also grew from 321 MW in 2021 to 4,124 MW by December 2024, underscoring the rapid expansion of the net-metering sector. However, the increase in solar net-metering consumers has contributed to a rising cost of electricity for grid consumers, undermining the government’s efforts to reduce power tariffs.
The ECC also discussed the financial implications of the growing number of solar net-metering consumers, especially as they avoid paying the fixed charge component of the tariff, including capacity charges and the fixed expenditures of power distribution and transmission entities. This has transferred a disproportionate financial burden onto grid consumers, contributing to higher electricity tariffs and undermining the sustainability of the energy sector.
The committee also noted that 80 percent of solar net-metering consumers are concentrated in nine major cities, with a significant proportion located in affluent areas. This geographical concentration further highlights the need for regulatory reforms to ensure fairness and balance in the energy distribution system.
The amendments approved by the ECC represent a critical step toward ensuring the sustainability of the power sector while protecting the interests of all consumers, particularly those who rely on the grid for electricity.
Stay Connected with ProPakistani
Get the latest business news, market insights, and economic updates wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
When will this policy take effect? I’m about to apply for net metering tomorrow, will it consider old contract or new ones?
When will this policy applicable?
Approved . Though you should get battery back up
This policy change represents a regressive step in Pakistan’s energy transition. Instead of promoting clean energy and reducing power costs for all, it protects the interests of politically connected power producers at the expense of ordinary consumers. If the government was truly concerned about fairness, it would reduce excessive capacity payments, improve grid efficiency, and invest in better power management rather than penalizing solar users who are helping reduce reliance on expensive grid electricity.
What about IPP decided. Always common man tagetted instead IPP agreement either to eliminate or revise to acceptable limits. Corrupt mafia just saved their feeders whose constant paying to them to make such agreements.
why not close plants running on expensive gas imported from qatar . and coal imported from south Africa and Indonesia. sad we have no sincere leaders
Opposition parties are silent in parliament and PTI is sleeping. Meanwhile Pmln is free to do whatever they want to. Lgay raho munna bhai.
Isn’t PTI in jail ? Also doesn’t Matter . There was 20% gst by PTI govt on solar users
Sab ke sab ek gain
Congrats pakistan
Another bad decision as usual. Not only you have made it difficult for people to give their own electricity but also made everyone hate this govt.
Same thing was done by Netherlands govt and also by Australian government and lastly by California govt and all 3 saw electricity becoming expensive and no actual progress was made.
Another failure.
This country is a complete joke.
Net metering rate was 19rs/unit. Reducing it without reducing electricity rate only showed that Govt lost to IPPs and had decided to burden the country even more.
This is why aurangzeb is incompetent. Not to mention we all know that journalists will never ask them why do this to consumers ?
This article is all the proof you need to know this govt has no control over anything except taxing the people for no reason. And this will be unsuccessful just as all previous steps were.
Net metering users provided more power to the grid since govt can’t do anything themselves.
Govt failed to negotiate with DISCOS. While putting full surcharges on solar users , they reduced the rates without consulting with the solar users. The fact that govt can’t tax the sun is proof how good govt will never do anything right.
Aurangzeb has failed as well. This country is run on IMF instead of its people just as last 60 years.
Nothing will change and we will never develop.
Solar users did not put any burden on others but provided their own generated electricity at 19rs while paying their own bills as well.
The Govt knows it failed to reduce electricity costs so they targeted solar users to show they are doing something to imf.
This will make climate financing claim to be denied.
Net Metering burdens .90 paisa / unit to non-solar consumers whereas IPP idle capacity payment burdens everyone @ RS 18/ unit. Just let that sink in. Whats funny is that with solar panel prices hitting rock bottom + new inverters that don’t even need batteries Government is set to loose atleast 60-70% revenue from power sector, people can just cut off wapda entirely during the day and turn it back on in the evening, use batteries during peak hours and just pay for the electricity used during night time.
Poor decision shame on government
Slashed rates of PKR 10 rupees is for surplus units hence this would not be affecting the purpose of solar system as your used units will ne offset by the current slab