Business

Govt to significantly reduce solar net metering buyback rates

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Staff Reporter

2 years ago

The government is considering reducing buyback rates for net metering electricity, potentially lowering them from the current Rs. 21 to Rs. 11 per unit.

The potential change comes as solar power adoption in Pakistan has surged, with installed capacity reaching 3,000 megawatts.

According to the Power Division, the facility has already greatly benefited consumers, and the power industry is now starting to decline.

Poorer consumers are bearing a greater financial burden from the sector as a result of wealthier users’ shift to net metering. The government believes that the present buyback rates are unjustifiable, even though it still supports the use of solar energy.

About 6000 MW of solar panels have been imported as of March 31, 2024, contributing to the production of 3000 MW of power.

To account for the increased national average power purchase pricing of Rs. 19.32 per unit, the National Electric Power Regulatory Authority (NEPRA) suggested modifying the Alternative & Renewable Energy Distributed Generation and Net Metering Regulations, 2015 in 2022.

Stakeholders and consumers opposed the changes, but NEPRA finally voted against them. The regulator confirmed that it was in line with the government’s goal of incorporating clean, reasonably priced renewable energy sources into the energy system while also acknowledging its part in minimizing losses, cutting down on foreign exchange expenditure, and decreasing the cost of power.

Staff Reporter