New Solar Panel Policy Sparks Concerns Among Consumers and Industry Players in Pakistan

The recent introduction of a new solar panel policy in Pakistan has raised concerns among solar panel consumers and business owners alike. Experts claim that the new policy has discouraged many potential users who were considering installing solar panels or were on the verge of making the decision.

The government’s decision to purchase electricity from new solar customers at a rate of 10 rupees per unit, instead of the previously agreed rate of 27 rupees per unit, has dealt a severe blow to the solar power industry. Many stakeholders are now questioning the implementation of this policy, its impact on the solar panel market, and whether existing agreements will continue under the old rates.

Solar panel business owners are particularly worried about the policy’s impact on their operations. Engineer Noor Badshah, involved in the solar industry, explained that the introduction of the new policy has already started affecting business. Around 30% of clients who had contracts in place for solar installations have decided to cancel their plans due to the policy changes. He added that while the official notification has been issued, it remains unclear when the policy will come into effect, but it is expected to apply to all new solar installations going forward.

For existing solar panel users who had set up net metering before the policy announcement, they will continue to sell electricity to the government at the old rate of 27 rupees per unit until their contract expires, after which the new policy will apply.

Critics of the policy argue that it is not in the public interest. Agha Mehdi Haider, Secretary of the Pakistan Solar Association, emphasized that the large difference between the old and new rates could significantly diminish the appeal of solar panel installations. While the government claims the policy will reduce electricity costs for regular consumers, industry experts remain skeptical about any tangible savings for the public.

Solar energy experts, like Director of Re-Energy, Sharjeel Ahmed Silhari, point out that while financial adjustments for export units might see some reduction, the overall appeal of installing solar systems under the new policy has diminished. Silhari believes that the government’s move is more about supporting Independent Power Producers (IPPs) than providing any real benefit to regular consumers.

This uncertainty has led many prospective customers to rethink their decision. One Islamabad resident, Mohammad Farooq Gulzar, who had initially planned to install solar panels before the summer, has postponed his decision due to the new policy. He explained that at the new rate of 10 rupees per unit, it would take him over six years to recover his investment, which was not financially viable.

As the solar industry faces these challenges, all eyes are on the government to see whether they will reconsider the policy or if protests from businesses and consumers will prompt any changes.