Govt announces revised solar net metering rates; Check details

The federal government has officially revised the solar net metering rates, introducing significant changes for consumers utilizing rooftop solar panel systems.

Under the updated policy, the government will now purchase surplus electricity from net metering users at Rs 10 per unit, a substantial reduction from the previous Rs 27 per unit, as confirmed by Federal Minister for Power Sardar Awais Ahmed Khan Leghari.

While the exported electricity will remain exempt from taxes, net metering consumers will continue paying an 18% sales tax on the electricity they import from the grid, similar to regular power users.

The Economic Coordination Committee (ECC) approved these changes, aiming to establish a balanced tariff framework while promoting solar energy adoption across the country.

Govt Secures Rs 1,400 Billion in Savings

In a recent interview on a private TV channel, Minister Awais Leghari disclosed that the government had successfully renegotiated contracts with Independent Power Producers (IPPs), securing a massive Rs 1,400 billion saving over the remaining years of these agreements.

This restructuring is expected to generate an annual saving of Rs 400 billion, leading to lower electricity tariffs for consumers in the long run.

Additionally, the discount rate on power sector loans has been reduced to 12%, further contributing to reduced electricity costs for consumers.

Net Metering Profits Adjusted to Rs 10 per Unit

Leghari emphasized that the previous Rs 27 per unit buyback rate was an excessive windfall profit for net metering users, prompting the government to revise it to a more reasonable Rs 10 per unit.

“If we had not adjusted the net metering prices, the financial burden on non-solar consumers would have increased significantly,” the minister stated.

However, he assured that the existing 283,000 net metering users will not be affected by the revised rates, as their current contracts will remain valid, maintaining the government’s commitment to honoring agreements.

Impact on Solar Panel Prices in Pakistan

Following the policy changes, solar panel prices have dropped nationwide, with a Rs 2 per watt reduction observed in the market.

This has significantly lowered the cost of installing solar systems, with prices decreasing by Rs 35,000 to Rs 175,000, making solar energy more affordable and accessible for consumers.

Updated Solar System Prices (On-Grid) in Pakistan

• 5kW system – Rs 550,000
• 7kW system – Rs 625,000
• 10kW system – Rs 850,000
• 12kW system – Rs 978,000
• 15kW system – Rs 1,150,000

For those opting for hybrid solar systems with battery storage, additional costs will apply.

Off-Grid Solar Systems Remain Unaffected

The federal minister clarified that off-grid solar setups remain unaffected by the new net metering policy. Consumers installing solar panels with batteries for their homes, businesses, or agricultural tube wells can continue without any government restrictions.

With the reduced costs and a clear policy direction, Pakistan’s solar energy sector remains a viable option for those seeking energy independence and long-term savings.