Maintaining the current solar net-metering policy can save $1.5-2 billion annually on the energy import bill, reduce circular debt by Rs400-500 billion by displacing costly fossil fuels, cut CO2 emissions by over 10 million tons per year, and support achieving Pakistan’s target of 60% renewable energy by 2030.

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solar net-metering policy

If the new net metering policy is implemented—reducing buyback rates or imposing additional charges—the future of Pakistan’s solar industry could face significant setbacks:

  1. Slowdown in Residential & SME Adoption
    Reduced financial incentives will discourage homeowners and small businesses from investing in solar, shrinking demand.
  2. Stagnation of Local Solar Companies
    Installers, EPCs, and solar product suppliers may see a major decline in business, leading to job losses and industry contraction.
  3. Missed Renewable Targets
    Pakistan risks falling short of its 60% renewable energy target by 2030, relying more on expensive fossil fuels.
  4. Reduced Energy Security & Higher Circular Debt
    Without solar expansion, dependency on imported fuels will increase, further worsening the import bill and circular debt crisis.

In short: Investment will slow, growth will stall, and Pakistan will miss out on cheaper, cleaner energy opportunities.

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