Aamna Aamna 
pakistan introduces new solar net metering rates what you need to know
In Pakistan, the government has set new capacity rates for solar, which constitutes a change in its renewable energy approach. The updated rates in question are designed for the users of rooftop solar panels, to create a more balanced tariff structure. However, they stand to continue incentivizing solar energy.
New Solar Net Metering Rates
Federal Minister for Power Sardar Awais Ahmed Khan Leghari announced that now the government will buy power from net metering users at a reduced price of Rs 10 per unit, previously at Rs 27 per unit. The move is part of the broader energy sector reforms aimed to cushion non-solar consumers who have been saddled with high electricity prices.
Leghari assured solar users that no tax would be imposed on the units sold to the grid; however, equal to any consumer, the solar net metering users would pay an 18% sales tax on the electricity consumed from the grid.
What This Means for Solar Consumers
The rate revision aims to lessen the unfairness in electricity distribution. The government felt that the buyback rate earlier was Rs 27 per unit and was unjustifiable since it made solar users disproportionately richer. The new Rs 10 per unit keeps about a fair margin for solar customers and protects non-solar customers from the ever-increasing cost of electricity.
The new rates would not have a direct impact on the 283,000 solar customers, who continue to operate under existing agreements.
Government’s Work to Cut Costs and Bring Down Loan Rates
Beyond this new net metering rate, Minister Leghari announced that the government had renegotiated the Independent Power Producer (IPP) contracts, saving the nation Rs 1,400 billion. This saving is expected to lower annual expenditures by Rs 400 billion toward reducing electricity tariffs in general. The government has now, in addition, gone on to reduce the discount rate on loans to the power sector to 12%, thus going further in reducing electricity prices in the longer term.
Falling Prices for Solar Panels
Regarding the revised net metering policy for solar energy, one of the optimistic outcomes would be a drop in the cost of solar panel installation in Pakistan. The cost of solar systems has dropped by Rs 35,000; it is accessible to even larger segments of consumers.
Current prices for on-grid solar systems:
- 5 kW system – Rs 550,000
- 7 kW system – Rs 625,000
- 10 kW system – Rs 850,000
- 12 kW system – Rs 978,000
- 15 kW system – Rs 1,150,000
For those opting for hybrid systems with battery storage, additional costs will apply.
