The Government of Pakistan is preparing to overhaul its solar energy policy by replacing the current net-metering system with gross metering. This move will impact new solar power adopters, who will no longer be able to offset their electricity bills with the energy they produce. Instead, under the gross metering model, all solar-generated electricity will be sold directly to the national grid at a fixed rate of Rs 11.33 per unit—a sharp reduction from the current buyback rate of Rs 27/unit for net-metering customers.
Why the Change?
The Federal Power Division argues that net metering has imposed a significant financial burden on the national grid, resulting in annual losses ranging from Rs 103 to 159 billion. These costs are largely being transferred to non-solar users, especially those in lower-income brackets who cannot afford solar panels. The surge in rooftop solar installations has also raised concerns about grid stability, prompting authorities to seek a more manageable energy model.
What Happens to Existing Users?
Officials stated that this transition will not affect existing net-metering customers. They will continue to benefit from the current Rs 27/unit buyback rate under their existing contracts. However, the government will place all new applicants under the gross metering framework once it implements the policy.
Implications for Consumers
This change will increase the payback period for solar investments and will likely discourage new residential and commercial users from switching to solar energy. Critics argue that the policy shift will hurt Pakistan’s clean energy goals and penalize efforts to reduce dependency on fossil fuels.
Balancing Equity and Grid Sustainability
Officials defend the new policy as a necessary step to ensure fairness in electricity costs and to maintain the financial health of distribution companies (DISCOs). Gross metering, they argue, will provide a more accurate accounting of solar energy contributions and help stabilize the national grid in the long term.
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