ISLAMABAD: The government is set to revise rooftop solar buyback rates by replacing the current net-metering system with a gross-metering system. This decision comes in response to concerns that the existing policy has led to an Rs103 billion burden on electricity consumers, primarily benefiting higher-income households with cheaper electricity.
Rooftop solar consumers would sell their electricity to the national grid for Rs8-9 per unit, a substantial decrease from the current Rs21 per unit, under the proposed scheme. The goal of this change is to make rooftop solar investments pay for themselves in around four to five years instead of the existing eighteen to twenty-four months.
Under the current net-metering scheme, solar power users pay Rs21/unit to sell their excess power back to the grid and Rs42/unit to buy it back during times when the grid isn’t producing electricity, like at night. Through this arrangement, wealthy consumers have been able to quickly recover their investment in solar systems, while individuals who depend entirely on grid electricity have been burdened with the cost. Documents from the Power Division indicate that this approach has resulted in a 1.03 rupee per unit rise in prices for low-income clients.
Solar users will not be able to achieve zero electricity bills due to the new policy’s proposed gross-metering method, which will sell all solar-generated electricity to the grid at cheaper rates. While net metering allows customers to use solar power to cover their energy demands, this method allows them to sell any excess power back to the grid.
With an increase in installed solar capacity from 321 MW in 2021 to 3,277 MW by 2024, the Power Division saw a notable surge in net-metering connections. Among the 37 million people who use energy in the country, 226,440 are net-metering customers, making up 0.6% of the total. If not controlled, this trend could increase the system’s load to Rs503 billion over the next ten years, officials warned.
Cities such as Lahore, Karachi, Islamabad, and Faisalabad make up 80% of net-metering users, and many of them live in wealthy neighborhoods. These customers have been able to lower their monthly electricity bills by as much as 35% due to the current legislation, which has put a heavy financial burden on those who do not use solar power.
Demands for a more equitable and well-rounded system have prompted the suggested changes. To avoid exploitation, energy experts say that solar adoption should be affordable, but they stress the need to match rates with falling solar panel prices. The National Electric Power Regulatory Authority (NEPRA) has been asked to actively change the rates for home solar energy to match current market trends.
The goal of the government’s proposal, which is set to be finalized in February, is to establish a more environmentally friendly system for installing solar panels on rooftops. To alleviate the financial strain on low-income and disadvantaged consumers, officials have recognized the requirement of having the political will to execute these reforms.