Pakistan Considers Halving Net-Metering Rate Amid Surplus Solar Power Concerns

Islamabad:The Pakistani government is reportedly considering a reduction in the **net-metering rate** from **Rs 22 to Rs 11.30 per unit** to address potential electricity surplus caused by solar generation during winter days and lower daytime grid demand. Prime Minister has instructed relevant authorities to **review and revise net-metering tariffs**.

Sources indicated that the **rapid expansion of rooftop solar systems** has significantly reduced electricity sales from the grid by **3.2 billion units**, leading to **Rs 101 billion losses for distribution companies**. This shortfall has forced adjustments in tariffs, increasing costs by up to **0.9 kW per unit** for grid-connected consumers.

The Power Division warned that by **FY2034**, solar production could lead to a further reduction of **18.8 billion units**, translating to a **financial impact of Rs 545 billion**, with consumers potentially facing a tariff increase of **Rs 5–6 per unit**.

Officials described the issue as **serious**, prompting **direct intervention by the Prime Minister**. During a meeting on **October 22**, the Prime Minister instructed **NEPRA and the Power Division** to **review and confirm the buyback tariff**, which currently acts as a **battery storage incentive for solar users**.

The proposed adjustment aims to **balance financial sustainability for distribution companies** while continuing to encourage solar adoption.