Solar Net-Metering Set to Expand Under New Policy: Energy Minister

Net-Metering

Federal Minister for Energy Sardar Awais Ahmad Leghari announced on Sunday that the number of solar net-metering consumers is expected to rise following new policy regulations.

Speaking on Geo News program Naya Pakistan, Leghari stated that solar consumers would recover their investment within approximately four years. He dismissed concerns that the government was discouraging solar adoption, clarifying that no taxes had been imposed on solar panels.

The Economic Coordination Committee (ECC) recently revised the buyback tariff for rooftop solar consumers from Rs27 to Rs10 per unit, a move aimed at balancing financial implications for grid consumers. However, the new rate will only apply to future net-metering applicants, leaving existing consumers unaffected.

Leghari refuted claims by former finance minister Miftah Ismail regarding an 18% tax on exported solar units, calling them “misinformed.” He explained that the increase in capacity payments—from Rs34 billion to Rs150 billion—was due to a reduction in grid consumers while fixed costs remained unchanged.

Under the updated framework, imported and exported electricity units will be billed separately, with exported units purchased at Rs10 per unit, while imported units will be charged at standard peak/off-peak rates, inclusive of taxes.

The ECC also granted the National Electric Power Regulatory Authority (Nepra) authority to periodically revise the buyback rate, ensuring adaptability to market conditions. The Power Division will issue guidelines for regulatory clarity, subject to cabinet approval.

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