Solar Net Metering Tariff in Pakistan: New Update
Solar Net Metering Tariff in Pakistan: The federal government is considering a significant cut in solar net-metering rates, a move that is likely to discourage rooftop solar installations across the country.
The proposed tariff adjustment, which aims to match falling global prices for solar panels and batteries, has raised concerns among renewable energy advocates.
Currently, solar system owners are compensated more than Rs 21 per unit for the electricity they supply to the national grid. However, the revised rates considered are between Rs 7.5 and Rs 11 per unit, reducing the previous payment by more than half.
New Solar Net Metering Tariff in Pakistan
As part of the proposed revisions, the electricity exchange equivalence would also change. Currently, two units of solar energy are considered equivalent to one unit of electricity in the national grid. If the new rates are introduced, this ratio could increase to six solar units per grid unit.
For solar consumers, this would mean selling excess electricity at Rs 7.5-11 per unit while paying Rs 60 per unit for grid electricity consumed at night or during peak hours.
Also read: Solar Panel Price in Pakistan 2024: The Ultimate Guide
Impact on Solar adoption
The revised tariffs are expected to reduce the financial viability of rooftop solar systems, discourage new installations, and potentially slow Pakistan’s transition to renewable energy. Solar advocates say such a move would discourage investment in solar energy, which has seen significant growth in recent years due to its cost-effectiveness and environmental benefits.
The proposed tariff reduction comes in the wake of concerns expressed by the International Monetary Fund (IMF) over the growing use of solar energy in Pakistan. The IMF has expressed concern that increased solar production could disrupt the country’s existing capacity payments to power producers, a critical part of its energy policy framework.
Energy experts warn the proposed changes could undermine the government’s renewable energy targets. “This move sends a discouraging message to those looking to invest in clean energy,” said the renewable energy specialist. “With rising electricity prices, solar power was becoming a viable option for consumers. But these adjustments could reverse that trend.”
Also read: NET-METERING REFERENCE GUIDE FOR ELECTRICITY CONSUMER