ISLAMABAD: The government is considering reducing the buyback tariff for electricity generated by rooftop solar panels to Rs7.5-11 per unit, down from the current rate of over Rs21 per unit. This adjustment, prompted by a significant decline in solar panel prices, aims to align with the evolving energy landscape.
Under the proposed changes, six units of rooftop solar electricity would be equivalent to one unit of grid electricity, compared to the current two-to-one ratio. Solar consumers would also face higher night-time grid electricity costs, rising to Rs60 per unit from the existing Rs42 per unit.
A senior Energy Ministry official noted that the shift could dampen the rooftop solar panel trend, as it adds to the challenge of capacity payments for idle grid infrastructure. The International Monetary Fund (IMF) has also urged the government to encourage greater reliance on grid electricity, expressing concerns over the decreasing grid utilization due to rising solar adoption.
Solar Adoption and Economic Pressures
A recent study, The Great Solar Rush in Pakistan, revealed that Pakistan imported 15GW of solar panels worth $2.1 billion from China last fiscal year. Escalating electricity tariffs—up by 155% over three years—have driven many households and industries toward solar solutions.
In comparison, K-Electric recently secured a solar plant bid at 3.1 cents per unit, further incentivizing authorities to lower rooftop solar tariffs in line with competitive market rates.
Impact of Policy Changes
Consumers reliant on net metering may face challenges if required to store excess solar power using batteries, which could cost up to Rs60 per unit. Authorities had previously proposed transitioning from net metering to gross metering, where solar generation is compensated at a fixed feed-in tariff, and consumers pay retail tariffs for grid electricity.
Meanwhile, complaints of power distributors, including K-Electric, resisting net metering applications have surfaced. Nepra has issued a show-cause notice to K-Electric to address these violations, emphasizing the need for transparent and equitable energy solutions.
These reforms reflect the government’s effort to balance consumer incentives with the sustainability of the national grid and broader energy policy goals.
Story by Khalid Mustafa
