The government is reviewing its policies on rooftop solar electricity as net-metered capacity has surged, reaching an impressive 2,500 MW. In a high-level meeting chaired by Federal Minister for Energy Sardar Awais Ahmad Khan Leghari at the Private Power and Infrastructure Board (PPIB) office, officials discussed shifting from the traditional net metering model to a net billing system designed to better manage the growing solar influx and maintain grid stability.
From Fixed Credits to Dynamic Pricing:
Under net metering, solar users receive fixed buyback rates for surplus electricity exported to the grid. The new net billing approach would tie unit purchases to dynamic energy prices. This change would enable automatic rate adjustments reflecting real-time market conditions a move that aims to balance consumer incentives with sustainability of the grid 2.
Rationalizing Grid Costs:
With the rapid expansion of solar installations, the grid has been under increasing strain. To ease this, the government has already terminated 9,000 MW of costly projects and introduced levies on captive power users, channeling them back to the grid. Since June 2024, a cross-subsidy of Rs. 174 billion has helped lower industrial tariffs by up to 31%, with further reductions across other consumer sectors.
Read more: Solar Power now Pakistan’s Third-Largest Source of Energy
Surplus Capacity Utilization:
There is currently more than 7,000 MW of excess capacity in the country. In addition to continuing changes aimed at modernising the energy sector while controlling costs, this excess power is being made available to industrial and agricultural consumers at competitive rates (7 to 7.5 cents per unit) without subsidies.
Concerns that the rapid expansion of solar capacity is shifting significant costs onto grid users are being addressed by the move from net metering to net billing. The government stresses that net metering won’t be completely eliminated, but the changes are meant to establish a more adaptable, market-oriented system.
This recalibration is a component of a larger energy strategy that aims to modernise Pakistan’s power sector, promote additional investment in renewable energy without burdening consumers, and improve grid efficiency.