Net Metering Rate Cut News Heats Up, Major Increase in Bills Expected

Islamabad: News regarding a potential reduction in net metering rates has resurfaced, sparking concerns of significant hikes in electricity bills. Reports suggest that the government is considering slashing the solar panel tariff for those supplying electricity to the national grid via the net metering system from the current rate of 21 rupees per unit to between 7.5 to 11 rupees per unit.
According to an English-language newspaper, currently, two units of electricity generated by solar panels are equivalent to one unit from the national grid. With a considerable decrease in the cost of solar panels, the government is considering reducing the payback tariff to between 7.5 to 11 rupees per unit. In return, consumers using rooftop solar panels will be required to purchase electricity from the national grid at up to 60 rupees per unit during night-time or peak hours.
A senior official from the Ministry of Energy revealed that as a result of this change, six units of grid electricity would become equivalent to one unit of electricity generated by solar panels, which is expected to reduce the trend of consumers installing solar panels on their rooftops.
The International Monetary Fund (IMF), in recent talks with Pakistani officials, raised concerns about the growing use of solar-powered electricity in the country and expressed worries over declining grid electricity usage. The IMF is urging the government to boost demand for grid electricity.
A recent study titled ‘The Great Solar Rush in Pakistan’ indicated that over the last three years, electricity prices have surged by 155%, prompting both households and industries to shift towards solar energy solutions.
In a related development, the National Electric Power Regulatory Authority (NEPRA) recently received complaints from Karachi residents regarding K-Electric’s failure to provide net metering connections. As a result, NEPRA has decided to issue a show-cause notice to K-Electric.
Earlier this year, the government had considered a new proposal for net metering, under which consumers would have to use their accumulated units within a month, rather than the current three-month period. If the units are not used, they would be forfeited. If this proposal is implemented, those with large solar systems will face losses and may need to increase their battery storage capacity.