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The federal government has initiated the process to abolish the existing net metering system and replace it with a net billing policy, marking a significant shift in the country’s rooftop solar framework, The News reported on Wednesday.
Under the current net metering arrangement, electricity units imported from the national grid and those exported back by solar consumers are adjusted on a one-for-one basis at comparable retail rates. This mechanism has allowed consumers to offset their electricity consumption with solar generation. Under the proposed net billing policy, electricity drawn from the grid will be charged at the full national tariff, while surplus solar electricity exported to the grid will be credited at a lower, differential rate.
As a result, consumers who export and import similar volumes of electricity may face substantially higher bills. According to estimates cited by officials, a household exporting 300 units and importing the same amount could now receive a monthly bill of around Rs10,000, compared to nearly zero under the existing system.
The government and power distribution companies (Discos) have defended the policy change, stating that it is required to recover grid infrastructure costs and address what they describe as revenue shortfalls caused by the current net metering arrangement.
Critics, however, argue that the shift places an additional financial burden on consumers who invested private capital in solar systems that contribute to national electricity generation.
The policy transition is also taking place amid unresolved operational issues in the sector. A significant number of net metering applications remain pending with Discos, while thousands of installed solar systems are yet to be metered or formally connected to the grid. Some distribution companies, including Lahore Electric Supply Company (Lesco), have suspended new solar meter installations following directives from the federal power ministry.
