The government is set to overhaul its solar energy policy by replacing net metering with gross metering, drastically reducing the buyback rate for electricity produced by solar users. The new buyback price has been slashed to Rs11.33 per unit, approximately one-third of the base electricity tariff of Rs34 per unit effective from July 1, 2025.
Under this new arrangement, solar users will no longer offset their electricity bills through net metering. Instead, all solar-generated electricity will be sold to the grid at the lower fixed rate, regardless of how much the consumer uses. The policy shift comes in response to a reported Rs103 billion financial burden caused by net metering.
While the new pricing applies to future solar users, those already connected through the current net metering system will continue receiving the existing rate of Rs27 per unit.
The Power Division plans to introduce this policy after it is reviewed by NEPRA and approved by the federal cabinet. It also aims to add 8,500 megawatts of electricity to the national grid under the new framework.
Previously, investors and solar stakeholders expressed strong opposition to the proposed cut in the buyback rate, warning that it could hurt the growth of solar adoption in Pakistan.
If implemented, the policy could have major implications for the renewable energy sector, affecting the economics of solar investments and discouraging new users due to reduced financial returns.
