New solar policy creates concerns for consumers in Pakistan

ISLAMABAD: Recent policies regarding the solar energy sector in Pakistan have created many new problems for consumers.

Recently, the federal agency Power Planning and Monitoring Company has issued instructions to electricity distribution companies that if the solar generation load on a transformer reaches 80 percent, then new solar connections will not be approved. These instructions are applicable not only to Lahore but also to other distribution companies in the country such as ISCO, MAPCO and FESCO.

According to experts, this policy means that now consumers installing solar systems will be limited according to the load of the transformer. A mandatory load flow study will be conducted for systems larger than 250 kW, which will affect many residential and commercial areas. The government says that these measures are being taken to reverse power flow, increase voltage and protect the grid.

Solar energy expert Yasir Siddiqui says that these restrictions on electricity consumers are unfair. According to him, the government should increase the overall capacity of the grid, not discourage solar consumers. Grid connection without a solar system is expensive and less efficient, which increases the cost to consumers.

In December last year, Nepra amended the prosumer regulations, under which the net metering rules were changed. Now, electricity sent from solar to the grid will be purchased at only Rs 11 to 13 per unit, while electricity taken from the grid will be at the full tariff. Apart from this, the shortage of green meters and expensive AMR meters are also additional burdens for consumers.

The government has imposed a 10% tax on imported solar panels, which has increased the price of solar systems. According to experts, these steps are being taken mainly to balance the circular debt of the power sector and capacity payments paid to IPPs.

However, experts say that instead of discouraging solar users, the government should prepare the grid for solar, promote battery storage and hybrid systems, and provide better net billing rates. Solar is still beneficial for self-consumption, but practical reforms are needed to promote it.