ISLAMABAD: The government has *capped net metering contract terms at five years, with periodic **revisions to buyback rates, as per new policy guidelines issued to the *National Electric Power Regulatory Authority* (Nepra).
Amid criticism over the *buyback rate cut from Rs 27 to Rs 10 per unit, the *Power Division has clarified the settlement mechanism: *imported and exported units will be billed separately, with exported units purchased at the **approved buyback rate, while imported units follow peak/off-peak tariffs. Consumers *cannot redeem or cash out credited excess units.
Nepra has been directed to conduct a hosting capacity study within six months, setting caps on distributed generation (DG) capacity per transformer and feeder. New inverter standards will be enforced, ensuring real-time grid interaction, remote monitoring, and anti-islanding protection.
Additionally, excess export beyond 10% of the sanctioned load will result in *non-adjustment of surplus units. The shift to net metering has already led to a **sales reduction of 3.2 billion kWh in FY-2024, adding *Rs 101 billion in financial burden and increasing consumer tariffs by *Rs 0.9/kWh. By **FY-2034, this impact is projected to **reach Rs 545 billion, potentially raising tariffs by *Rs 3.6/kWh.
The policy aims to *balance renewable energy growth with grid stability, while addressing concerns over *fixed charge losses and declining energy sales.
Story by Mushtaq Ghumman
