In a move set to rattle the country’s growing solar energy consumers, the Power Division will push forward with long-dreaded amendments to net-metering rules in the upcoming Budget 2025-26, sources confirmed to ProPakistani.
Top officials said that after failing a few weeks ago with bringing the solar buyback rate to Rs. 10 from Rs. 27 per unit, the federal government has realized that it cannot control the increasing number of solar net-metering consumers without making some big changes in power tariff laws.
Equipment fees will rise, a new tax structure will be implemented on service and installation charges, while imports will be levied with a standard fee through the Revenue Division, sources added.
Grid users are slowly but silently shifting to alternative energy to escape soaring Independent Power Producer (IPP) surcharges. These charges are set to climb even higher, despite the International Monetary Fund’s willingness to slash power tariffs across the board.
Under the revised framework, the Power Division will hammer down the buyback rate from the National Average Power Purchase Price (NAPP) to Rs. 10 per unit—a figure that was earlier planned for implementation but rejected by the federal cabinet after severe backlash from the public. Sources said sales tax will increase and the buyback rate will likely fall below Rs. 10 per unit for new users. Instead of periodic adjustments, the National Electric Power Regulatory Authority (NEPRA) will be allowed to enforce a one-time cut through the Finance Bill 2025, slashing rates effective July 1, 2025.
Sources maintained that existing net-metering consumers with valid licenses, agreements, or regulatory concurrences will remain shielded from the changes until their contracts expire, sources confirmed. However, newcomers to the system will be offered drastically reduced buyback incentives. Rooftop solar adoption will get more complicated next fiscal year, sources added.
A drastic overhaul of the net-metering settlement mechanism is the only way it seems. The government will separate imported and exported units for billing as planned in February 2025, meaning exported solar power will be purchased at the slashed Rs. 10 per unit rate, while imported grid electricity will be billed at standard peak and off-peak tariffs stacked with taxes and surcharges.
Sources disclosed that the government is increasingly alarmed by the record drop in solar panel prices, which has triggered an explosion in net-metering adoption. As of December 2024, solar net-metering consumers had shifted a staggering Rs. 159 billion burden onto grid consumers—a figure projected to balloon to a jaw-dropping Rs. 4,240 billion by 2034 if left unchecked.
Installed capacity has surged from just 321 MW in 2021 to a massive 4,124 MW by the end of 2024, fueling government fears over worsening grid instability. Officials say that with no way to store surplus solar energy, grid consumers are left bearing the brunt of rising electricity costs.
More Fixed Charges
As part of the budget exercise, solar users will likely be slapped with a higher fixed charge component in the new budget on their quarterly net-metered bills. This will include capacity charges and additional costs linked to power distribution and transmission networks. Power Division sources said that these measures are crucial to offsetting the pressure on conventional grid consumers, who bear the brunt of our tariff adjustments.
The proposed changes will require Cabinet approval before NEPRA integrates them into its regulatory framework. However, the writing is already on the wall—Pakistan’s solar boom is facing its biggest challenge yet. While sources can only reveal so much, the upcoming budget exercise will be a tough one for renewable energy.
Maro mujhay maro 😭
Aapko maar dein gey tou tax kay paisay kaun dega ? Jis sey hukumraan ayaashi aur peena pilana kareingay.
Well Said, Very Very Well Said. Allah Bless You.
Jahil tax waha b dia jata jaha tm jse log jane k lye din rat trapty ho baki jesi awam wese hukmaran zara apni manji thaly dang phero phle being awam ktne sai hai hum
No, it will not work. The masses are now shifting to the off-grid option due to massive load shedding and high electricity charges. Since it is an easy option for the government to collect all kinds of taxes through the electricity bill, this approach is no longer viable. Only those who steal electricity will remain with the grid, and companies will not be able to shift this loss to fair-paying customers, as they are doing right now.
Another fake news
Since the federal govt has already rejected the proposal. Placing additional taxes on created electricity while reducing buy back rate won’t work.
It won’t stop solar adoption but create tensions which ultimately fail the Govt.
Alot of bold claims as before. Typical fake news
Is this article a joke ? Gardezi kindly read before saying
The Govt has rejected it.
The people have rejected it.
Since the IPPs charges are going up then there is no need for people to use grid.
Also the fact that you claimed additional sales tax despite the fact that seller is the solar consumer makes no sense.
How can you reduce buy back rate while allowing billing rate to be the same ?
Alot of contradictions in the article.
This Guy so called Angry Guy, should be replace his name to “FOOL GUY”, “STUPID GUY”, “PEDESTRIAN FROM WISDOM GUY”, “NONSENSE GUY” or “LOVE TO LIVE IN A FOOL PARADISE GUY”
And you have proof of that ?
News regarding changes to net metering are in air and every quarter is proposing changes and little solution is being offered. We all have become news consumers rather than solution provider or suggesters. I my opinion, Govt should promote domestic solarization with even more incentives and facilitation. Heavy on taxation be imposed on industrial solar and they should be discouraged. This way both will be at ease as the industry will get the electricity price through their products from consumers and domestic consumers will be able to support their energy requirements and make the local grid more stable. The figure as circulated by the Govt on net metering consumer is just under 300,000 which is negligible. There are however many solar in villages and cities which are not on net metering or grid. These need to be encouraged through incentives. Alas many will go off grid rather than choosing two meters.
May be for domestic solar energy users having netmeeting no cost shall be considered for the units used and balanced through export , while any surplus export or units be paid by the government in the same enthusiasm and costs as shown in selling it’s grid units to consumers who use it for house hold purpose
The writer of this blog, had a lot of time on his hand and just wrote with imagination
Whole world is encouraging solar but in Pakistan a few big people own or get commission from IPPs worth billions
Sadly no they are not .
Netherlands ended net metering to discourage solar adoption. They are in energy crisis
California govt decreased net metering rates. Their energy issues have risen as well.
Australia was the first country to stop net metering and also the country where solar was created. They also have high energy prices and govt collapsed.
They hate the fact that China is the biggest player in the market. Not to mention it allows everyone to be free from the grid.
I remember once it was said that CNG ll help Pakistan to reduce the burden of foreign exchange in terms of petroleum purchase.
Same is now situation with the solar energy, when people are installing the solar system government is reducing the buy back program.
once this policy was adopted no properly home work was done.
If the government wants to organically disincentivize solar, then focus on lowering electricity rates and improving grid performance. Policies that punish net metering customers will only push them towards grid defection.
Also this article would be more credible if it actually cited sources for claims, otherwise it looks like conjecture.
How the burden got shifted to on grid customers, did the government paid you to write this line ??
Just a propaganda tactic to rope in non-solar users support against solar users by pretending non-solar users are resultant injured party.
Electricity theft, capacity payments and line losses (poor grid performance) affects all users by ladening them with charges for electricity which they did not consume and overcharging them for electricity they did use.
Ignorant person writing this ambiguous article
“As of December 2024, solar net-metering consumers had shifted a staggering Rs. 159 billion burden onto grid consumers”
Utter BS! If an entity is not using grid energy, it does not mean they are shifting burden to grid users. There is no guarantee that that energy would be used from the grid anyway. They may forego/minimize usage in that case. Pathetic scare-mongering tactics by IPP agents/paid front men in sitting in government and regulatory bodies.
Any good article on this topic must mention who signed these one-sided contracts with these IPPs and who amongst the politicians, bureaucrats and other government entities alongside friends are directly or indirectly in ownership/partnership of these IPPs and benefitting/profiting from the capacity payments and expensive unit charges being paid despite not supplying full electricity.
As mentioned in the article, “installed capacity has surged from just 321 MW in 2021 to a massive 4,124 MW by the end of 2024.” If it’s like that, doesn’t it provide a golden opportunity to the government to plan increasing production by channelizing it towards Industry and Agriculture. It would give a surge to our export and revenue.
I would request an expert opinion, please.