The Economic Coordination Committee (ECC) has approved a major revision in solar net-metering regulations, cutting the buyback rate for solar energy from Rs27 per unit to Rs10 per unit. The decision, aimed at addressing the growing financial strain on grid consumers, came during a meeting led by Finance Minister Muhammad Aurangzeb.
Revised Framework to Apply Only to New Consumers
The ECC clarified that the new buyback rate will not affect existing net-metered consumers who already hold valid licenses or agreements under the Nepra (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015. These agreements will remain in place until their expiration, ensuring that current users continue to receive the previously agreed rates.
To maintain flexibility in energy pricing, the ECC also authorized Nepra to revise the buyback rate periodically. This step allows the regulatory framework to adjust based on changing market conditions and economic realities.
Updated Billing Mechanism for Imported and Exported Units
Under the revised regulations, imported and exported units will be billed separately.
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Rising Solar Net-Metering Consumers Impacting the Grid
The decision follows extensive discussions on the impact of solar net-metering on the national power grid. The ECC was informed that the sharp drop in solar panel prices has fueled a rapid increase in net-metering consumers.
By December 2024, the number of net-metering consumers had reached 283,000, up from 226,440 in October 2024. The total installed solar capacity has also surged, rising from 321MW in 2021 to 4,124MW by December 2024.
While this growth has encouraged renewable energy adoption, it has also increased electricity costs for grid-dependent consumers. The financial burden transferred to grid users due to net-metering reached Rs159 billion in 2024, and projections suggest this could rise to Rs4,240 billion by 2034 without intervention.
Ensuring Fairness in the Energy Sector
The ECC also highlighted concerns about inequality in solar adoption. Around 80% of solar net-metering consumers are concentrated in nine major cities, mostly in affluent areas. These consumers avoid fixed charges, such as capacity and transmission costs, placing a greater financial burden on regular grid users.
Officials stressed that these regulatory changes are necessary to balance the energy sector, ensuring that all consumers share the costs of maintaining the national grid.
The amendments approved by the ECC mark a critical step in securing the sustainability of Pakistan’s energy sector, ensuring fair pricing while continuing to support solar power adoption.
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