In a decisive move, Prime Minister Shehbaz Sharif has halted the government’s latest attempt to replace Pakistan’s existing solar net metering system with a gross billing model. This marks the third time such a proposal has been blocked before reaching cabinet approval.
Net metering allows solar energy users to sell excess electricity back to the grid at a buy-back rate of Rs 27 per unit, significantly offsetting their electricity bills. The Power Division, supported by the Ministry of Information, had proposed to change this structure, suggesting a new gross billing system with a drastically lower buy-back rate of Rs 11.33 per unit.
Gross Billing Plan Sparks Controversy
The proposed shift aimed to lengthen the return on investment for rooftop solar systems from 1.5 years to around 2–3 years. Officials claimed it would stabilize grid operations and reduce financial burdens on distribution companies (DISCOs). However, critics argued that it would discourage new solar installations and undermine Pakistan’s renewable energy goals.
The policy change was viewed as anti-consumer, especially given the rising popularity of rooftop solar as a cost-effective energy solution amid frequent power outages and high electricity tariffs.
Cabinet Pushback and Public Pressure
According to a senior Power Division official, the Prime Minister’s Office issued a direct order to “stop the campaign against net metering.” This intervention followed increasing pressure from solar energy advocates and concerned citizens who feared the impact of gross billing on both energy affordability and green energy adoption.
The Cabinet and the Economic Coordination Committee (ECC) previously rejected similar proposals due to public backlash and the perceived negative impact on the renewable energy sector.
Read Also: Customs Slashes Valuation Rates on Solar Panel Imports
Future of Solar in Pakistan
Industry experts, environmentalists, and homeowners who have invested in solar systems have welcomed the decision to maintain the current net metering policy. It reinforces the government’s commitment to expanding access to renewable energy and supporting citizen-driven solutions for power generation.
With growing awareness and adoption of solar power in Pakistan, net metering remains a critical component in making the transition to clean energy both accessible and sustainable.
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