Pakistan to Shift Towards Net Billing System for Solar Energy Users

The federal government is set to shift from the current net metering model to a net billing system as solar power installations under net metering reach 2,500 megawatts, signaling a major policy change to enhance grid stability and energy efficiency.

The development was disclosed during a high-level meeting chaired by Federal Minister for Energy Sardar Awais Ahmad Khan Leghari at the Private Power and Infrastructure Board (PPIB) office. The minister emphasized that net metering will not be scrapped entirely but will be modified to align with grid requirements and modern energy practices.

Minister Leghari said the transition to a net billing system is under active consideration, and future unit purchases may be tied to dynamic energy pricing. This would enable automatic adjustments in electricity rates based on market fluctuations, providing a more balanced and sustainable approach.

He further stated that the government has taken several steps to rationalize power generation costs. These include the cancellation of 9,000 MW of high-cost projects and the imposition of levies on captive power consumers, redirecting them to the national grid.

Since June 2024, a cross-subsidy of Rs174 billion has been implemented, cutting industrial electricity tariffs by up to 31 percent. Meanwhile, other consumer categories have benefited from tariff reductions ranging between 14 percent and 18 percent.

The minister noted that the country currently has 7,000 MW of surplus electricity, which can now be offered to industrial and agricultural sectors at competitive rates of 7 to 7.5 cents per unit without any subsidies.

Key Reforms to Modernize Energy Sector

Leghari highlighted that all ongoing reforms, including the proposed net billing system, are part of a broader strategy to overhaul the energy sector. The government aims to modernize the grid, improve system efficiency, and better integrate renewable energy sources like solar into the national mix.

He concluded that adapting the current solar power policy is crucial to ensure long-term sustainability and affordability for all stakeholders.