ISLAMABAD: In response to widespread criticism, the government has decided to expand consultations on the Solar Net Metering Regulations approved by the Economic Coordination Committee (ECC) and re-submit recommendations to the federal cabinet after incorporating feedback from all stakeholders.
The decision was made during a *federal cabinet meeting on Wednesday, following intense backlash over the government’s March 13 move to reduce the net metering buyback rate by two-thirds to *Rs10 per unit and eliminate net billing. The changes, aimed at curbing solar net metering growth amid rising grid electricity costs, were initially approved in an ECC meeting chaired by Finance Minister Muhammad Aurangzeb.
Controversial Policy Changes
Under the revised policy:
- Power companies would buy surplus solar electricity at Rs10 per unit during the day, while selling grid electricity at Rs42 per unit (off-peak) and Rs48 per unit (peak)—excluding taxes.
- Consumers would no longer be allowed to install solar capacity beyond their *sanctioned load, except for a *10% cushion (down from the previous 50% limit).
- Existing net metering consumers would gradually transition to the new framework as their seven-year contracts expire.
Public and Political Outrage
The announcement triggered severe criticism, including from *Petroleum Minister Ali Pervez Malik, who warned that the move would damage market confidence and should have been handled more effectively. The *business community also urged the government to engage with industry stakeholders to ensure a fair and balanced energy policy that supports renewable energy while protecting consumer interests.
Former finance minister Miftah Ismail was among those who strongly condemned the policy shift, highlighting its impact on electricity prices and consumer burden. Sources revealed that a meeting chaired by Prime Minister Shehbaz Sharif on Sunday specifically addressed the negative fallout from Ismail’s social media criticism.
Following the meeting, the PM’s Office reaffirmed the government’s commitment to renewable energy expansion and directed officials to clear up “confusion” around the solarisation policy using facts and figures.
“There is no change in the government’s solar energy policy and priority,” the prime minister emphasized, signaling a potential reconsideration of the controversial net metering revisions.
