Pakistan

Solar Consumers in Peshawar Face Fixed Charges

The Peshawar Electric Supply Company (PESCO) has proposed new fixed charges for solar consumers who use the net-metering system. The company argues that solar users rely on the national grid during periods of low solar generation but do not pay enough toward grid maintenance.

According to PESCO’s proposal, charges would be based on either the consumer’s load or the proportion of electricity units supplied. The company claims that net-metering consumers draw power from the grid when their solar output is low, yet avoid paying for grid upkeep.

This, PESCO says, shifts the financial burden onto non-solar consumers and reduces revenue for distribution companies as rooftop solar adoption rises.

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PESCO also highlighted technical challenges, such as voltage fluctuations and the need for extra investment to keep the grid stable. The company insists that imposing fixed charges on net-metering users will help maintain financial balance and ensure fair cost recovery.

Meanwhile, the National Electric Power Regulatory Authority (NEPRA) is reviewing a major change to the solar net-metering policy.

Sources in the Power Division say NEPRA plans to cut the buyback rate for solar units from Rs. 23 per unit to Rs. 10. In the next phase, officials may even consider ending the buyback system entirely, meaning consumers would receive no payment for excess solar power sent to the grid.

Officials say the current policy has led to a sharp rise in electricity costs for grid consumers, as more households and businesses install rooftop solar systems.

Solar power producers have reportedly been paid Rs. 125 billion so far, adding to the financial strain on the national grid.

The proposed changes are expected to spark debate among solar users, energy experts, and consumer rights groups as Pakistan seeks to balance renewable energy growth with grid stability and fair cost sharing.

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Published by
Rija Sohaib