ISLAMABAD: The government has introduced new regulations for net metering, capping contracts at five years and lowering the buyback rate for surplus electricity to Rs10 per unit. Authorities will periodically adjust the rate based on financial viability, significantly reducing it from the previous Rs27 per unit. The decision has sparked concerns among net metering users, who argue the changes could discourage solar adoption.
The National Electric Power Regulatory Authority (NEPRA) has been tasked with recalibrating the buyback rate using the National Average Power Purchase Price. Exported electricity will be compensated at the revised rate, while imported units will continue to be billed under peak and off-peak tariffs. Consumers will receive credits for excess energy but will no longer have the option to cash them out.
To manage grid stability, distribution companies are required to assess hosting capacity on transformers and feeders within six months. Additionally, NEPRA will enforce new inverter standards, mandating advanced grid-interactive inverters with remote monitoring and anti-islanding features for future net metering participants.
The revised policy also prevents net metering capacity from exceeding a consumer’s sanctioned load. If exported electricity surpasses 10% of this limit, surplus units will go uncredited. Officials argue that net metering users currently bypass fixed charges, indirectly contributing to rising power tariffs.
In FY24, net metering reduced electricity sales by 3.2 billion kWh, shifting a financial burden of Rs101 billion onto other consumers and raising tariffs by Rs0.9 per unit. Projections indicate that by FY34, reduced sales could reach 18.8 billion kWh, adding Rs545 billion in costs and increasing tariffs by Rs3.6 per unit.