Karachi: The federal government had no choice but to revise Pakistan’s Net-Metering regime, as an unchecked surge in on-grid rooftop solar power installations could have severely impacted the national grid. This was the consensus among energy experts at a webinar titled “Net-Metering Debate: Facts vs. Claims”, organized by Energy Update in collaboration with the Pakistan Solar Association (PSA) and the Renewable Energy Association of Pakistan.
Experts emphasized that amending the Net-Metering framework was crucial for maintaining the financial viability of the system introduced to purchase clean energy from consumers with on-grid rooftop solar setups. They stressed that the government should not be obligated to pay capacity charges to consumers benefiting from the Net-Metering system.
Dr. Fiaz Chaudhry, former Managing Director of NTDC and current Director at LUMS Energy Institute, stated that the rapid increase in rooftop solar installations was placing an unbearable financial burden on the government, which already faces fiscal constraints in managing the electricity sector. He explained that the revised Net-Metering policy primarily affects affluent consumers who use more than 300 units of electricity per month.
Dr. Chaudhry highlighted that the Rs. 18 to Rs. 20 per unit capacity payments to Net-Metering consumers were unjustifiable and contributed to inflated electricity bills for the majority of power consumers who lack solar installations. He likened these payments to a “smart theft” system, benefiting a select few at the cost of the broader population.
Renewable energy expert Syed Faizan Ali Shah noted that Pakistan’s Net-Metering policy was originally introduced in 2015 to address power shortages. However, he argued that, like in many other countries, policy revisions were necessary due to the significant expansion in renewable energy and base-load generation. He pointed out that unregulated solar installations were overloading transformers and other equipment in already struggling distribution companies. Without reforms, the cumulative rooftop solar capacity could have doubled from four gigawatts to eight gigawatts in the coming years, potentially destabilizing the national grid.
Abid Latif Lodhi, Managing Director of Power Planning and Monitoring Company, clarified that the Net-Metering reforms impact only 240,000 power consumers—about 42% of the total 500,000 domestic customers with three-phase connections. He reassured that low-income consumers using single-phase electricity remain unaffected.
Senior financial and insurance expert Moin M. Fudda warned that, after taxation, the revised Net-Metering rate could drop to Rs. 8 per unit, discouraging potential solar adopters. He urged the government to involve the National Electric Power Regulatory Authority (NEPRA) in decision-making rather than imposing changes unilaterally.
PSA Chairman Waqas Moosa called for a grace period before implementing the new policy to allow traders and consumers time to adapt. He cautioned that the sudden change could devastate the market for on-grid inverters, as businesses had already invested heavily in stock and imports.
PSA Senior Vice Chairman Hasnat Khan predicted that revised Net-Metering rates would push affluent consumers toward battery storage solutions to maximize self-consumption and further reduce grid dependency.
Moderating the session, senior renewable power expert Irfan Ahmed suggested that the policy revision should create a win-win scenario for both solar consumers and the government, ensuring long-term grid stability and economic sustainability.
Energy Update representative Naeem Qureshi stressed that policy changes should be made through consultative dialogues with stakeholders instead of unilateral decisions. He urged NEPRA to hold provincial-level hearings to gather consumer feedback before finalizing tariff adjustments.
The webinar concluded with a call for transparent and inclusive policymaking to ensure Pakistan’s transition to renewable energy remains fair, sustainable, and technically viable.
