LAHORE: Pakistan Solar Association (PSA) Chairman Waqas Moosa has cautioned that proposed amendments to net metering regulations will severely impact the solar industry, particularly affecting residential users and Small and Medium Enterprises (SMEs).
The new regulations aim to extend the payback period for on-grid photovoltaic (PV) systems from the current 1.5 years to approximately three years. In contrast, hybrid solar systems with lithium-ion batteries already offer a payback period of under three years, with technological advancements expected to further reduce this duration. “We foresee a sharp rise in demand for solar-plus-battery solutions in the near future,” Moosa noted.
However, he criticized the move, warning that it could have long-term negative consequences for the power sector. The stark difference between the export rate of Rs10 per unit and the Rs50-60 savings from self-consumption will likely push more consumers toward battery storage.
“As more customers opt for self-storage and extend their off-grid usage, demand for DISCOs will decline, leading to higher electricity prices for those still reliant on the grid. This will disproportionately burden lower-income households—the very segment these policies claim to support,” he explained.
Moosa also condemned the lack of industry consultation, stressing that abrupt policy changes could disrupt market stability. “Supply chains cannot be adjusted overnight. Traders holding on-grid inventory will suffer losses, while prices for hybrid systems and batteries may surge,” he warned.
He urged the government to engage with stakeholders and adopt a balanced approach to ensure sustainable growth in the solar sector.
