Solar Net Metering in Pakistan

The Hidden Cost of Solar Net Metering in Pakistan: Who’s Paying the Price?

Introduction

Solar net metering in Pakistan was introduced in 2018 under the leadership of Power Minister Awais Leghari, to promote renewable energy and help consumers cut electricity costs. However, this well-intended policy has created a financial imbalance, shifting a Rs. 159 billion burden onto millions of non-solar consumers. Now, the government is adjusting tariffs to restore fairness while keeping solar adoption viable.

Solar Net Metering in Pakistan

Solar net metering allows consumers with solar panels to sell surplus electricity back to the grid. It was designed to:

  • Encourage renewable energy adoption
  • Reduce dependency on fossil fuels
  • Lower electricity costs

But while solar users have benefited, non-solar consumers are now paying extra to subsidize them—raising concerns about fairness in electricity pricing.

The Rs. 159 Billion Burden on Consumers

As of March 2025, Pakistan has 283,000 net metering users.
The financial burden on non-solar consumers has surged from Rs. 102 billion in October 2024 to Rs. 159 billion in just a few months.
40 million regular electricity consumers are now paying an additional Rs. 1.5 per unit to cover the costs of net metering.

Government’s Stance: Reform, Not Removal

The government fully supports solar energy but is making necessary tariff adjustments to balance the cost burden.

  • Current Buyback Rate: Rs. 27 per unit
  • Proposed Adjustment: Rs. 8-9 per unit

This revision will prevent excessive subsidies while ensuring net metering remains a viable option for solar users.

Debunking Misinformation: Net Metering is NOT Ending

Some political and business groups claim the government is abolishing net metering—this is false.

The policy remains in place, but tariffs are being adjusted to create a fairer distribution of costs.

Why Solar Still Remains a Smart Investment

Even with adjusted tariffs, solar remains a great long-term investment:

  • Payback period: 4-5 years instead of 2 years.
  • Long-term savings on electricity bills
  • Sustainable, eco-friendly energy solution

Future of Solar Energy in Pakistan

The government aims to expand solar capacity to 12,377MW by 2034, ensuring sustainable growth without disproportionately burdening non-solar consumers.

Conclusion: A Fair Energy Policy for All

While solar energy is essential for Pakistan’s future, the net metering policy must be balanced to ensure fairness for all consumers. The government’s tariff adjustments will help distribute costs more equitably while keeping solar power an attractive option.

Do you think net metering should be revised? Share your thoughts in the comments!

Read more about the Power Sector: IPP Contract Renegotiations

MOST VIEWED