Govt Plans Drastic Reduction in Solar Net Metering Rates

By Huma Ishfaq ⏐ 9 months ago ⏐

2 min read

Govt Plans Drastic Reduction In Solar Net Metering Compensation

ISLAMABAD: The government has proposed a revision to the electricity rates for solar panel owners’ net metering in a submission to the IMF delegation.

Additionally, the government plans to purchase excess power from solar panel owners at a significantly reduced rate compared to the current tariff under the new agreement.

Currently, solar panel owners receive Rs. 27 per unit for the excess electricity they supply to the grid. However, under the new plan, this rate is expected to drop to around Rs. 10 per unit. The International Monetary Fund (IMF) has raised concerns about how the government plans to handle solar panel owners who choose not to connect to the national grid.

The International Monetary Fund (IMF) has brought attention to the nationwide increase in solar installations, even though the government has not yet given a clear answer. The International Monetary Fund predicts that this tendency may pick up speed in the next several years, which might make the power sector less efficient and less sustainable.

Government officials have emphasized the need to simplify electricity rates. Currently, there are 104 power plants operating across the country, with 18 managed by the government and 86 by private companies. To improve efficiency, the government has shut down five inefficient power plants and renegotiated tariffs with fourteen independent power producers (IPPs).

Additionally, eight bagasse-based IPPs have successfully reduced their tariffs. These measures are part of the government’s efforts to make electricity more affordable and improve overall efficiency in the power sector.

Government representatives have stated that discussions with the other IPPs are continuing. Additionally, the government is looking into the chance of using the extra money that would be available because of less debt servicing, which is equal to Rs. 1.3 trillion. A reduction in the basic electricity tariff is anticipated as a result of these actions, according to officials.