The federal government is moving to cut the buyback rate for solar net metering by nearly half, as Prime Minister Shehbaz Sharif directs regulators to expedite a review of the proposed tariff.
The Power Division has proposed reducing the rate paid to consumers who sell surplus solar power to the grid from Rs. 22 per unit to about Rs. 11.30, citing the financial burden on other electricity users. The directive, issued at a high-level meeting on October 22, calls for the Power Division and the National Electric Power Regulatory Authority (NEPRA) to verify the new rate and assess its impact before finalizing reforms, according to Business Recorder.
The government is also reviewing all existing net metering contracts to determine if buyback rates can be legally revised without breaching agreements. New standard contracts are being drafted to align with a proposed Net Billing framework for future customers.
Officials say the rapid expansion of rooftop solar has reduced grid sales by 3.2 billion kWh in FY2024, adding Rs. 101 billion in costs for other consumers and raising average tariffs by Rs. 0.9 per kWh. Projections show the impact could intensify, with sales reductions reaching 18.8 billion kWh and an added burden of Rs. 545 billion by FY2034.
The government’s long-term power plan anticipates over 8,000 MW of net metering capacity by FY2034, a “forced addition” that could undermine least-cost expansion strategies. Grid operators have also reported operational stress during periods of high daytime solar generation, at times forcing the restoration of high-loss feeders to maintain system stability.
The move to revise net metering rates comes after an earlier proposal to set the buyback rate at Rs 10 per unit was shelved due to cabinet opposition. The Prime Minister has now ordered a fresh round of consultations and a robust public communication strategy to explain the changes.
Good to hear. Buy 200 per unit from IDPs.
Pakistan came into being for government officials and businessmen.
Ye ehsas ipp ky waqt to aya nhi. Aam awam ki haib my paisa jata bohat dukhta hy
so government has no issue buying from IPPs and paying in dollar at great expense ?
people will install batteries .
“raising average tariffs by Rs. 0.9 per kWh”
I would say an impact of less than a Rupee is worth-it for bearing the fruits of Sustainable and Clean Energy of the future. No need to present it in totality into Billions and so. This simply encourages people to adopt Clean Energy and develop a sustainable energy infrastructure at their own expense which otherwise is an expense for the GOVT. to handle.
This will also encourage EVs and dependence on imported Fossil Fuels. So clearly the benefits outdo the costs. So the Govt. should focus on further incentivizing this rather than starting to discourage clean energy.
When you cant better life by right decisions take bad decisions to show them how good their life is already. Another case of wrong people at wrong places making life worse for others.
The PM said again and again, solar is the future, discuss with me about solar, millions of Solar equipment was imported from different countries, people sold their jewellery and assets to install solar to get a relief from ruthless electric bills. IPPs are continuous being paid in $s whether they produce or not. These IPPs are owned by big shots. And time and again effort is made to cut the buying rate by 50%, PM and his cabinet should think of the masses, the common people who are being pinned down. This will increase the frustration which already is touching the skies, middle man / common citizens are being driven against the wall, people have committed suicide on receiving ridiculous high electric bills. PM sahib think of the public and not about a handful of elite. But probably your hands are also tied, the stake holders are stronger than the PM.
The IPPs are owned by big business tycoons as follows:-
Here are the names of the individuals who own IPPs in Pakistan:
– *Mian Mansha Group*: Owns four IPPs
– *Abdul Razak Dawood*: Owns Rousch (Pakistan) Power Limited (RPPL)
– *Jahangir Khan Tareen*: Owns two IPPs, JDW Sugar Mills Unit 2 and JDW Unit 3
– *Salman Shehbaz*: Owns Chiniot Power Limited
– *Nadeem Babar*: Has partnership in Orient Power Project with Mahmood Group
– *Suleman Shahbaz Sharif*: Owns Chiniot Power Ltd
– *Hussain Dawood*: Owns Tenaga Generasi Limited and Engro Powergen Thar (Pvt) Limited
– *Saifullah Group*: Owns Saif Power Limited and Saba Power Company (Pvt.) Ltd
– *Mansha Group*: Owns Nishat Power Limited, Nishat Chunian Power Limited, Lalpir Power Project, and Pak Gen Power Limited
So, how can their sale of electricity can be challenged.